what to do if exchange rate approach the levels

[kelo]

what to do if the exchange rate approach the
support level = buy or sell
or resistance level = sell or buy!

Or does it depends what the trend of the day is...
for example forecast for next 24 hrs is a down trend exchange rate reach the resistance level go short vica versa when forecast is up trend exchange rate reach the resistance level go long.....

I read in former discusions lessons some opposite opinions about this

I like to get some input about this issue


tkz

[benkorea]

For example:

If the trend is downward the price is getting closer to a support; I would wait it breaks it by say 10-15 pips get short.

Same thing for an upward trend if the prices approaches a resistence I would wait it breaks by 10-15 pips then get long.

Some people would also trade a bounce of the support/resistence but this is not my game. Sometimes a bounce off a strong support/resistence can be very powerful.

BUT in my case some more indicators will have to agree as a break of support/resistence is not my only criteria for entry!

Hope this help! Good luck!

[nazzdack]

For illustration purposes let "50" be a support number. (1) If I already have a bearish opinion of the market I prefer to sell-short at 595857565554535251 cover the entire position at 50 the FIRST time the market gets there. 50 becomes an irresistable target as the market approaches it. I expect the market to rally off the 50 level that's why I cover the short position. (2) Assuming the market later breaks down below 50 I look to re-establish short positions at 4948 47 46 & 45 because I'm hoping/expecting the market to re-test 50 to the upside as a resistance level. Ideally the market rallys back to 50 trades a tiny bit at 50 then promptly continues downtrending. (3) It has to do with the old saying; "what was once support is now resistance". (4) Maybe it can work for you too.