Swing trading using support and resistance is possibly the best way to trade without indicators. If you are sick and tired of jumping from indicator to indicator then there is a good chance that this may just be what you are looking for. This method is so popular and so effective that you will find many bankers and other professional traders around the world trading a variety of markets using nothing more than support and resistance. Support and resistance areas of markets are key or crucial turning points that if correctly identified can greatly increase your chances of entering into a winning trade. It is easy to see why they choose swing trading over everything else.
Swing trading using support and resistance is so effective because support and resistance levels are where you stand the best chance of entering into a profitable trade. As price moves up and down in the market, there are certain levels where it meets resistance or support. These levels form due to a variety of reasons, what is important is that as a trader if you know where these levels are you can use them to your advantage. By placing trades (buy or sell) at these areas, your odds of entering into a winning trade are greatly increased. They reduce the need for guess work and they reduce the need for any kind of indicators. One of the biggest problems new traders have is that they are unsure as to what indicator they should use while trading. Trading based on support and resistance levels completely eliminates the need for any kind of indicator and simplifies the entire trading process.
Support levels are perfect places for you to enter trades. As price approaches these levels it usually meets supports or resistance. If price bounces off of a support level, this is a good time for you to enter in the direction of the trend. Price typically bounces from strong support levels and will continue on with the trend. This is the perfect place and time to enter a long trade just before the rally continues. Resistance levels can be used for optimal timing to exit your trade and maximize your profits. Another problem many new traders have is that they aren’t sure when or where they should exit a trade. If you know price will likely meet resistance at a certain price level in the market, then exiting or closing out your trade just before or at that level in the market means you will avoid giving back too much to the market. By closing trades at these levels you now know when to exit and make sure that you protect your profits by closing a trade before price begins to turn against you and wipe out any profits you may have already made.
Swing trading using support and resistance at first may be different to what many traders are used to. You can swing trade a variety of markets with nothing on your chart other than plotting where possible support and resistance levels may be. You may be pleasantly surprised at just how effective they can be.
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