Forex Price Action - How to Place Support & Resistance Areas

Placing support & resistance areas using price action

Last week I held a webinar on placing support and resistance areas in Forex. As usual with my webinars, it was not flashy or scripted. I just opened my charts and talked about price action.

Overall the webinar went well and I was able to place support and resistance areas on four pairs. I was able to share a lot of good tips.

However, many people in this webinar were asking off-topic questions, so we got side tracked. In the end, this is not one of my better webinars. It is still worth watching and you should learn a lot about price action and support and resistance areas.

I will be releasing a condensed video soon that will summaries all the important information in the webinar.

My price action strategy

The video above covers only part of my overall Forex price action strategy. Below you will find some other useful links.

Questions

If you have any questions about my trading strategy or support and resistance areas please ask below.

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430 comments

Alfredo Muñoz

March 10, 2015

Hi Nick.

Now, when we are not at the webinar, I would like to ask an off-topic question:
What have happened with your mentees? The people free mentored by you. I’m really curious about them. You now what are they doing right now? How many of those have been?
As always, thanks for sharing your knowledge. You are a great Mentor!

Alfredo.

James

March 10, 2015

Great stuff. You have really helped me understand price action.
I have trouble applying book knowledge and your videos help tremendously.

khagrax

March 12, 2015

Once again, great video with thorough explanation. Thanks!

Would it be possible to explain a bit more how you work your money management when entering a trade? How do you calculate your lot sizes.
Basing on your videos, I tend to hear you always open 5 lots but what % is that of your account?
Do you set a SL first to calculate what your lot size will be, to stick to a percentage of your account per trade and only then enter the trade?

mybrother

March 13, 2015

Good question khagrax. I know there is some information on the site regarding lot sizes but I find out that when someone goes through it practically, what I think it is, is not whats played out. Can anyone in the advanced classes answer?, That’s if Nick doesn’t mind.

Nick

March 13, 2015

I do not want to talk about my account size as that is personal information. It would be like me asking for your salary or how much savings you have.

However, as for money management, it is pretty simple.

I trade a small percentage of my account. To make things easy lets say 1%.

When figuring out my money management for a specific trade. I figure out my stop loss based on a few things.

First a choose a target. I never trade worse that 1:1 on my first target. So my first target defines the minimum size of my stop loss.

I then compare the minimum stop loss size to the maximum size I would be willing to lose on any one trade with my normal lot size (let says four lots). If the stop size is greater than the max I am willing to lose, I either scrap the trader, or alter my lot size.

So, lets say I cannot lose more than 30 pips on GBP/USD with my normal lot size. However, the trade I am looking at requires a stop of 40 pips. I will either scrap the trade or I will trade three lots instead of four.

I stick to a percentage of my account. I set my first target first, then I set my stop loss.

khagrax

March 13, 2015

Thanks for the explanation Nick, really appreciate all your input.
Apologies, I didn’t mean to ask about your account size, I meant % of your account per trade, like 1% or 2%. Guess I worded it wrong :)

mybrother

March 16, 2015

Apologies Nick. Your explanation has cleared this up. looking forward to the next tutorial. Cheers

fx trading

March 17, 2015

this specific site is wonderful i’m keen on reading your content regularly

e5pinho

March 19, 2015

Hi Nick,
First of all, Thank You so very much for charing with us a system that just on its simplicity alone is already a winner!
I must congratulate you for using pure logic and I do agree with you when you base your trading decisions on price action at S/R zones and following the idea of thinking logically the question I would like to ask is:
Since the market constantly makes HH / HL or LH / LL would it make sense to use Std Diviation Chanel Lines over a period of say 21 days (which roughly a month), instead of Horizontal lines to determine S/R levels?
Besides giving us the direction of the market I have a feeling that might just produce more touches on this type of lines.
This is just a though, nothing more.

Vince

March 20, 2015

I am about 3 months into my forex education. After 1 blown demo account, numerous tests involving indicator based strategies and a massive losing streak that didn’t seem to want to end then to fail trying engulfing candles and other useless methods I was almost ready to give it away. I just spent the last 3 days watching your Youtube postings. After applying your strategy I cleared 135 pips (closed early as it was Friday) on an 8 hour time frame and one candle. I was pleasantly surprised and have high hopes now. I do not believe it was a fluke. I will test your strategy further on Monday.

(You really ought to enforce the no questions till the end of your presentations rule as this would definitely reduce the length of you videos otherwise they are very good)
Kind regards

fx trading

March 24, 2015

Great site. Loads of strategies here forex

Eric

March 25, 2015

Nick,

I am impressed on your win rate (of above 80%) and the simplicity of your trading strategy.

I will like to know how many pips you plan to gain (per week/month) on your trade plan? I am not asking for how many you actually achieve – may be either more or less. Just what you plans are.
Thanks.
Eric

Tony

May 13, 2015

Hi-
I’m having a difficult time charting S and R on USDCad on the daily… Can u chart the Š and R so I can better understand?? Thank you!!!

MartiX

February 5, 2018

Hi Nick.
When you trade on 4h time frame, then at what time frame should I set up support-resistance? On 4h or 1D? Or on 1D and confirm with 4h?
Thanks