#StrategyTrade #StrategyTrade

Support and Resistance Strategy + Confirmation from RSI

1. Identify Support and Resistance Areas

• Support: The price level where, if the currency drops to it, the price often rebounds and rises.

• Resistance: The price level where, if the currency rises to it, the price often retreats and falls.

Example: If SXT always reaches 0.50 and bounces, this is strong support. And if it reaches 0.60 and falls, this is resistance.

2. Use the RSI Indicator

• RSI = Relative Strength Index.

• If RSI is below 30 = the currency is oversold (buy opportunity).

• If RSI is above 70 = the currency is overbought (sell opportunity).

3. Entry Method:

• If the price reaches a support area and RSI is below 30 → Buy.

• If the price reaches a resistance area and RSI is above 70 → Sell.

4. Determine Stop Loss:

• Set the stop loss below the support if you bought, or above the resistance if you sold.

• For example: Bought at 0.50, set stop loss at 0.47.

5. Take Your Profits:

• You can set a percentage (for example 10%-20%), or wait for the price to reach the next resistance level.

Practical Example:

• Current SXT Price: 0.506

• Strong Support at: 0.50

• RSI = 28

→ Excellent Buying Opportunity

• Stop Loss: 0.48

• Profit Target: 0.56 or 0.60$SXT