How to Trade Areas of Interest: Master Support and Resistance in Forex
Types of Areas of Interest: Master Support and Resistance in Forex
Areas of interest—psychological, strong, weak, and break-and-retest—are critical zones where price reacts, offering high-probability trade setups. After seven years of trading and millions in profits, I’ve used these Price Action Trading zones to generate $1,000–$1,500 weekly in the $6.3 trillion Forex market. In this guide, I’ll explain the types of areas of interest, how to identify them, and share a real trade example to show their power.
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1. What Are Areas of Interest?
Areas of interest are price zones where buyers or sellers dominate, causing reactions like reversals or continuations, encompassing support, resistance, psychological levels, and break-and-retest patterns.
Key Types:
Psychological Areas: Round numbers (e.g., 1.7000, 1.7500) where price often reacts due to trader psychology.
Strong Areas: Support/resistance with 3–4+ rejections (taps), highly respected for reliable reactions.
Weak Areas: Support/resistance with fewer than 3 rejections, less reliable due to limited historical data.
Break-and-Retest: Price breaks a resistance/support, retests it as new support/resistance, then continues in the breakout direction.
Ignoring these zones cost me thousands. Trading strong areas of interest turned losses into consistent wins.
2. Why Areas of Interest Matter
Areas of interest are foundational for traders because they pinpoint where price is likely to react, offering high-probability setups with minimal obstacles to profit.
Benefits of Trading Areas of Interest:
Predictable Reactions: Strong areas (3–4+ taps) and psychological levels have historical data, increasing win rates.
Impulsive Moves: Price at these zones moves quickly to take-profit, especially in break-and-retest setups.
Versatility: Use on any timeframe (e.g., daily for swing trades, 1-hour for day trades), with higher timeframes being more respected.
Weak areas led to losses, but strong and psychological zones delivered profits like $85,000 in a day.
3. How to Identify Types of Areas of Interest
Use TradingView to mark areas of interest on daily/4-hour charts for reliability, combining psychological levels with strong/weak support/resistance and break-and-retest patterns.
Identification Steps:
Psychological Areas (2 Minutes): Identify round numbers (e.g., 1.7000, 1.7500) on any timeframe, especially effective on lower timeframes (1-hour/30-minute) when paired with support/resistance.
Strong Areas (3 Minutes): Mark support/resistance with 3–4+ rejections (taps) on daily/4-hour charts. More taps (e.g., 5–6) mean higher reliability.
Weak Areas (2 Minutes): Identify support/resistance with fewer than 3 taps, avoiding these due to low reliability.
Break-and-Retest (3 Minutes): Spot a breakout through resistance/support, wait for price to retest the level as new support/resistance, and confirm with candlestick patterns.
Support and Resistance Basics:
Support: A zone with 3+ taps where price bounces upward, respected more on higher timeframes (e.g., daily vs. 1-hour).
Resistance: A zone with 3+ taps where price falls downward, also stronger on higher timeframes.
Not Support/Resistance: Zones with fewer than 3 taps or inconsistent rejections (price breaking through without tight respect).
Identifying strong areas of interest took practice but now drives my daily trading success.
4. Trading Areas of Interest Effectively
Trade areas of interest with Price Action, focusing on strong zones or break-and-retest patterns during high-volume sessions, and avoid weak areas for better win rates.
Trading Tips:
Prioritize Strong Areas: Trade support/resistance with 3–4+ taps (buy above support, sell below resistance) for high-probability setups.
Use Psychological Levels: Combine round numbers (e.g., 1.7000) with strong areas on daily/4-hour charts for added confluence.
Trade Break-and-Retest: Enter after a breakout retests the level (e.g., resistance becomes support), confirmed by bullish/bearish engulfing candles.
Trade London/New York Sessions: High volume (3:00 AM–12:00 PM EST) ensures strong reactions and low spreads.
Risk 2%: Use BabyPips’ Position Size Calculator to risk 2% per trade (e.g., $100 on $5,000) for controlled losses.
Manage Psychology: Wait patiently for price to hit strong areas, avoiding FOMO-driven trades at weak zones.
Common Mistake to Avoid:
Trading Weak Areas: Zones with fewer than 3 taps lack historical respect, leading to unreliable reactions and losses.
Trading strong areas and break-and-retest patterns boosted my win rate and consistency.
5. Real Trade Example: EUR/USD Strong Support Trade
Here’s a Price Action trade I took on EUR/USD at a strong support area of interest, generating $336 in 7 minutes during the London session:
Trade: Buy EUR/USD on a 1-hour timeframe at the London session open (3:00 AM EST).
Setup: Daily chart showed a bullish trend (higher highs/lows, HH/HL) via top-down analysis. 4-hour chart confirmed bullish structure (HH/HL). A daily support level (6 rejections, including past resistance taps) aligned with a psychological level (1.7000) and a 1-hour bullish engulfing candlestick, signaling a high-probability buy on the fourth tap.
Execution Plan: Risked 2% ($100 on $5,000 account) using BabyPips’ calculator (0.53 lots, 15-pip stop-loss). Traded at 3:00 AM EST (London open) for high volume. Used TradingView’s long position tool for a 15-pip stop-loss (5 pips below support), 30-pip take-profit (next resistance), 1:2 ratio. Journaled on MyFXBook to track performance.
Execution: On MetaTrader 5, selected “Instant Execution,” entered 0.53 lots, set stop-loss 15 pips below support, and take-profit at next resistance. Spread was 3 pips.
Psychology: Waited patiently for the fourth tap at the strong support, avoiding FOMO-driven early entries or weak zones.
Result: Profited $336 as price impulsively bounced from support, closed manually to demonstrate, shared live with my community. MyFXBook logged a 1:2 risk-to-reward and London session success. No slippage occurred.
Profit Screenshots: My students see results like $1,000, $2,000, even $10,000 weekly trading strong areas of interest. Join my course to access these setups!
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Final Thoughts
Mastering types of areas of interest—psychological, strong, weak, and break-and-retest—unlocks high-probability Forex trades, driving $1,000–$1,500 weekly. Follow these principles to succeed:
Focus on Strong Areas: Trade support/resistance with 3–4+ taps for reliable reactions, avoiding weak zones (fewer than 3 taps).
Use Psychological Levels: Combine round numbers (e.g., 1.7000) with strong areas for added confluence.
Trade Break-and-Retest: Enter after breakouts retest as new support/resistance, confirmed by candlestick patterns.
Trade London/New York: High-volume sessions (3:00 AM–12:00 PM EST) ensure strong reactions.
Stay Selective: Wait for multiple taps (e.g., fourth tap at support) and avoid FOMO-driven trades at weak zones.
Ready to trade like a pro? Join my 5-Day Trading Mini-Course to learn my areas of interest strategy and trade with a community generating massive profits weekly.
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