Support/Resistance without indicator

This strategy creates a support/resistance tunnel in a range market. And trades can be placed on the break of the tunnel. This strategy does not even need an indicator. It can be used to any currency pair and in any time frame as long as a tight range is spotted. Hourly charts and 15 minutes charts are both good for tunnel breakout forex strategies.

When price breaks the trend line (support or resistance) and closes outside the tunnel, buy (when it breaks resistance) or sell (when it breaks support). Although an exit rule is not defined, some traders believe that the price will likely to travel the distance equal to the height the tunnel, once it breaks the tunnel. Also for conservative traders, you can wait until the second candle closes in the trading direction to confirm the breakout of tunnel.

In case of sell position, a stop loss should be place right above resistance level. And in case of buy, a SL can be placed right below support level.

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