Price Action Strategy - Key Levels - Support and Resistance Levels
I would like to suggest a pure price action strategy. It can be called Key levels or round numbers. The price returns from key price levels. These price levels are called support and resistance levels. Instead of using other indicators we can use these price levels as entry and/or exit points. The indicator I used for this strategy is called LT Round Numbers. Through this indicator we can set the key price level with points difference. It calculate points from 0 level i.e. Gold 1824.0, GBPUSD 1.2050 etc. You can adjust the key price level with any point difference. The screen shots of Gold and GBPUSD are attached for reference. Yellow lines are key levels with point difference of 25 points. The red line is day opening price.
Rules
Levels above the day opening price can be called as Resistance Levels. R1, R2, R3..... Rn
Levels below the day opening price can be called as Support Levels. S1, S2, S3..... Sn
Price touches R1 or S1 enter in trade through stop order or limit order.