Get Our New E-Books For Free

Trading the Strong Support and Resistance Levels Breakouts

The strong support/resistance levels’ breakouts is one of the trading systems we follow at LuckScout Millionaire Club.

This is such a strong and reliable system if you wait for the strong support and resistance levels while the Stochastic Oscillator is in the right position.

If you haven’t learned about this system on your website yet, you can do it now: Stochastic Oscillator: A Mechanical Indicator for Forex Trading

One of the good features of this system is that it is mostly a mechanical system. It means it doesn’t need too much analysis and interpretations.

All you have to be careful about is the strong support and resistance levels on the markets and waiting for their breakout while Stochastic Oscillator is on the right position.

Following this system on the longer time frames like daily and monthly can be so profitable.

It is not the matter of the number of the trade setups. It is the matter of the profit you can make through each trade setup.

Do you agree or you are still looking for a trading system that generates several trade setups every day? 🙂

USD has started going up after the US elections. There are some important fundamental reasons behind this. However, the market is still hesitant and bulls haven’t gained enough confidence yet.

One of the factors that can inform us whether bulls have become confident enough to take the control and establish an uptrend, is the breakout above the current resistance levels on the longer time frames like weekly, monthly and also daily.

It seems USD/CHF has already formed half of a Cup pattern. Learn about this pattern: Cup and Handle Pattern in Forex Market

However, if it breaks above some resistance levels, it will be more probable that it forms the other half and finally forms a complete Cup and Handle pattern on USD/CHF monthly chart:

Cup And Handle Pattern USD/CHF Monthly Chart

Cup And Handle Pattern USD/CHF Monthly Chart

If you zoom in and take a closer look at USD/CHF monthly time frame, you can find some resistance levels that their breakout can be known as the beginning of an uptrend (although I believe that some of these levels are not as strong as what they have to be.)

The first resistance level is at 1.0327. That is the one that doesn’t look strong enough, but the market is reacting to it which means although it is not strong, it is important to the market.

As you see, the current monthly candlestick has already tested the 1.0327 level and has reacted to it:

The 1.0327 Resistance Level

The 1.0327 Resistance Level

You can see the market’s reaction to this level in more details on the weekly chart. You can also see a smaller resistance level at 1.0255 on the weekly chart

It seems USD/CHF market is reacting to both of these levels:

USC/CHF Weekly Chart

USC/CHF Weekly Chart

Those who don’t feel confident enough to buy if USD/CHF breaks above the 1.0327 level, can wait for the stronger levels breakouts at 1.1731 and 1.2296.

Of course please note that the Stochastic Oscillator has to be on the overbought area when the resistance breakout occurs, otherwise one of the important conditions of our Stochastic Oscillator trading system is not met.

1.1731 and 1.2296 Resistance Levels on USD/CHF Monthly Chart

1.1731 and 1.2296 Resistance Levels on USD/CHF Monthly Chart

Good luck 🙂

Join Our 20,000+ Loyal Followers Now & Receive Our E-Book For Free!
Download Our E-book For FREE and Don't Miss Our New Articles!
Enter your email address and check your inbox now:


"Whether you think you can, or you think you cannot, you are right." - Henry Ford

I want to...

35 thoughts on “Trading the Strong Support and Resistance Levels Breakouts
  1. Ben Aqiba Ben Aqiba says:

    Hi Chris,

    Great article.Thank you.

    About your question “Do you agree or you are still looking for a trading system that generates several trade setups every day?”, I have learned so far that no matter how much trade setups we have taken, we will be profitable only if we take too strong setups, and they are definitely worth of waiting.


  2. Jovita Mbah Jovita Mbah says:

    Hi Chris,

    I have a question, you said stochastic oscillator should be in overbought position when resistance breakout occurs to go long, is it right to go long (buy) in a market that is already overbought?

    • LuckScout LuckScout says:

      Hi Jovita,

      Yes. Indeed, many of the strong movements form after Stochastic reaches the overbought area.

      Many novice traders make this mistake and go against the market as soon as they see a reversal signal and while Stochastic is on the over area. Reaching the over area doesn’t mean that the market will reverse.

  3. Thanks Brother i flow 2 years this rule very good working GOD bless you Chris

  4. GT Success GT Success says:

    Very good analysis again, Chris. So glad to see the daily articles these few days.

  5. Thanks Chris.

    What about if, in up trend and the price hit a strong resistance and formed a reversal pattern like bearish engulf, dark cloud, or shooting star do we go short? or not recommendable, and better to wait till it hits a strong support and take it long trade as far as the main trend is UP.

  6. Lala Joe Lala Joe says:

    hey criss do u use this system by ur self .. or u stick to only candlesticks+BB system only ?


  7. Ben Aqiba Ben Aqiba says:

    Hi Chris,

    I just want to wish Merry Christmas and Christmas Eve to you and to your team.
    You are doing a great job here, and I am sure that you have some great ideas for the future,
    because you are the man with a vision.

    Thanks for everything 🙂

  8. 24/12/2016 GBPJPY Weekly Bearish Engulfing Pattern With Bollinger Upper Band Breakout & Price Rejecting 50 SMA As Well 🙂

  9. Lala Joe Lala Joe says:

    hey sir Criss .. is this the right time to take trade .. because its 100% exactly same situation on EUR/USD weekly chart as U described in this article ..
    here is screen shoot ::

  10. Lala Joe Lala Joe says:

    hey sir is this right wave count on USD/JPY weekly chart ?

  11. Lala Joe Lala Joe says:

    Sir Criss plz don’t dlt this comment .. and must reply …
    Sir today market opened and my Stop losses triggered for no reasons .. even they were far away from current price . Sir its seems like My broker is cheating me and hunting stop losses ..
    here are the image : (U can see stop losses triggered even price did not reach to my stop losses levels . even if I add current spread too .)

    Sir plz must reply in little details .


  12. Lala Joe Lala Joe says:

    Criss I have A Question if U don’t mind ::

    why did U deleted this article ?


    this article is redirecting to another old 2012 article …

  13. Lala Joe Lala Joe says:

    HEY sir Marry Cris-mess … 🙂 wish u happy , healthy and more prosper life !

    sir plz take a look on this set up AUD/CHF .. is this is strong trade set up ?


    what positive and -ev point u see in this set up and how many numbers u will give to that set up ?

    2nd : sir I wan to join club , do u post daily market analysis in member area ?


  14. Lala Joe Lala Joe says:

    hey do u use this system on daily chart by yourself ? or U use only this system on weekly & monthly chart ?

    I am talking about Stocastic+S &R breakout system …


  15. Lala Joe Lala Joe says:



    sir may be this question is off from the topic .. but plz ans this question ..

    >> I read a lot about being disciplined trader and I am still not clear about its exact definition .. what exactly mean “being a disciplined trader ” ..

    Sir is its mean

    — not deviate from system rules and follow them religiously..
    — wait patiently for strong trade set ups and don’t start looking for another system that can give more and more signals when a trader is not seeing any signals from few days ….
    — not taking a lot of risk !
    — and when stop loss hit then dont start doubting system
    –no matter how many days he not make any money … but he mush hat to wait for strong set up … and not push himself to trade to make money !


  16. Lala Joe Lala Joe says:

    hey sir ..

    when S or R level will broke and Sto will in in over area

    .. I have to enter immediately or wait for S or R level retest ?

    what is safe ?

    I entered immediately on weekly chart after broke R level and price spike back and Hit SL …

    image :: http://prntscr.com/dps13t


Leave a Reply :

Your email address will not be published. Required fields are marked *


Download Our E-Book For Free!