- Double tops/bottoms: Two peaks/troughs at similar levels indicating reversal (75% success with volume confirmation)
- Head and shoulders: Three peaks with middle peak higher, suggesting trend reversal (70% success with neckline break)
- Ascending/descending triangles: Price consolidation between support/resistance and trendline (67% success in breakout direction)
Pocket Option Support And Resistance Strategy
Trading Strategies
Navigating the volatile world of trading requires reliable methods that stand the test of time. The Pocket Option support and resistance strategy represents one of the most fundamental yet powerful approaches to reading market behavior, providing traders with crucial decision points and high-probability trading opportunities across multiple timeframes.
The Pocket Option support and resistance strategy forms the cornerstone of profitable technical analysis across all markets. These critical price levels create invisible barriers where buying and selling pressure clash, generating predictable trading opportunities. Support emerges when buyers overpower sellers, preventing further price decline, while resistance forms when sellers dominate buyers, establishing price ceilings that halt advances.
Unlike complex indicators that lag or produce false signals in volatile conditions, support and resistance levels on Pocket Option reveal real-time market psychology. This approach works consistently across all instruments—currencies, commodities, and stocks—regardless of market conditions or timeframe.
Successful implementation of the Pocket Option support and resistance strategy requires precise identification techniques. Analyze at least 3-6 months of price history to identify recurring turning points where price has reversed multiple times. The strength of these levels directly correlates with three key factors: frequency of touches, volume during reversals, and recency of formations.
| Level Strength | Characteristics | Trading Action |
|---|---|---|
| Weak | 1-2 touches, low volume, older formation | Avoid direct trading; use as secondary confirmation only |
| Moderate | 3-4 touches, average volume, recent activity | Trade with additional confirmation signals; smaller position size |
| Strong | 5+ touches, high volume, sharp rejections | Primary trade setup; standard position sizing; higher probability |
Psychological round numbers (1.0000, 25000, 100.00) function as powerful support and resistance zones on Pocket Option. Professional traders place orders slightly beyond these obvious levels (typically 10-15 pips) to avoid the cluster of retail orders and potential stop hunts that occur precisely at round numbers.
The highest-probability application involves trading bounces off established levels, particularly effective in ranging markets. Enter long positions when price approaches support with confirmation from bullish candlestick patterns (engulfing, hammer) or oversold RSI readings (below 30). Place stops 10-15 pips below support and target the opposing resistance or implement a 1:2 risk-reward minimum.
When price breaks through established levels, the role-reversal principle creates high-probability setups. Former support converts to resistance after downside breakouts, while former resistance becomes support after upside breakouts. Enter trades only after price conclusively closes beyond the level (minimum 1% penetration) and returns to test the broken barrier.
| Breakout Type | Entry Criteria | Stop Placement |
|---|---|---|
| Upside Breakout | Enter after resistance breaks and price retests from above | 5-10 pips below the retested former resistance |
| Downside Breakout | Enter after support breaks and price retests from below | 5-10 pips above the retested former support |
| False Breakout | Enter counter-trend when price reverses back into range | Beyond the failed breakout swing point |
Elevate your Pocket Option support and resistance strategy by identifying these high-probability complex patterns:
The most powerful support and resistance levels appear across multiple timeframes. On Pocket Option, identify levels that align on daily, 4-hour, and 1-hour charts before entering positions. These multi-timeframe confluence zones increase success rates by 15-20% compared to single-timeframe approaches.
When markets consolidate between clear support and resistance levels, implement range-trading strategies. Enter longs at support with targets at mid-range (50%) and upper resistance (100%). Similarly, enter shorts at resistance with targets at mid-range and lower support. This approach capitalizes on the highest-probability market behavior—continuation within established ranges.
The Pocket Option support and resistance strategy works because these levels represent collective memory points where market participants made significant decisions. As price approaches these levels again, three psychological factors drive predictable behavior:
- Missed opportunity traders who wait for price to return, creating renewed buying/selling pressure
- Trapped traders seeking breakeven exits when price returns to their entry point
- Pattern-recognition traders who repeatedly exploit familiar setups at these levels
| Trading Experience | Maximum Risk Per Trade | Minimum Risk-Reward |
|---|---|---|
| Beginner (0-1 year) | 1% account balance | 1:2 (minimum) |
| Intermediate (1-3 years) | 1-2% account balance | 1:1.5 (minimum) |
| Advanced (3+ years) | 2-3% account balance | 1:1 (with higher win rate) |
Boost win rates by 30-40% when combining the Pocket Option support and resistance strategy with these powerful confirmation tools:
- RSI divergence at support/resistance (signals potential reversal with 65-75% accuracy)
- Volume spikes at levels (confirms significance of the zone and potential reversal)
- Moving average alignment (trade bounces only in direction of larger trend)
- Candlestick confirmation patterns (engulfing, doji, hammer formations)
The Pocket Option support and resistance strategy offers one of the most reliable approaches to consistent trading profits. Start implementing these techniques immediately by following a structured approach: first master basic bounce trades, then progress to breakouts, and finally incorporate advanced patterns and multi-timeframe analysis.
Focus initially on major currency pairs and indices where support and resistance levels tend to be most respected. Document each trade's performance at these levels to identify which specific setups and markets work best with your trading style. With consistent practice and proper risk management, the Pocket Option support and resistance strategy can transform your trading results within 30-60 days.
FAQ
What makes support and resistance levels so important in trading?
Support and resistance levels represent psychological price barriers where buying and selling pressure typically intensify. These areas create natural decision points where market participants consistently react, making them valuable for predicting potential price reversals or breakouts.
How can I identify the strongest support and resistance levels on Pocket Option?
Look for price levels that have been tested multiple times with clear rejections and high trading volume. The most significant levels typically show sharp reversals, appear on multiple timeframes, and often coincide with other technical indicators like round numbers or Fibonacci levels.
Should I enter trades exactly at support and resistance levels?
Waiting for confirmation signals rather than entering trades exactly at levels is generally safer. Look for candlestick patterns, volume increase, or indicator signals that confirm the level is holding before entering, as this reduces the risk of false breakouts.
How do I handle breakouts through support and resistance?
When breakouts occur, wait for a retest of the broken level to confirm the role reversal principle. Former support should now act as resistance (and vice versa), providing a safer entry point with a tighter stop loss placement.
Can the Pocket Option support and resistance strategy work with all trading styles?
Yes, support and resistance principles apply across all timeframes and trading styles. Scalpers may use minor support/resistance levels on smaller timeframes, while swing traders focus on major levels on daily or weekly charts, but the core principles remain consistent.