Simple Rangebound Forex Trading Strategy

A simple rangebound forex trading strategy with great profit potential. Tools of the trade: Identify important support and resistance levels on the hourly chart or use the Support and Resistance Metatrader 4 Forex Indicator.

Download link:

Click here to download the Simple Rangebound Forex Trading Strategy

Forex Indicators:

Stoch Oscillator (5,3,3)

Support and Resistance forex indicator

How it works

Add the Stoch (5,3,3) oscillator to your chart to pinpoint possible long and short entries in the market.


1) Wait either for a pull back towards support or a rally towards resistance.

2 a) For long trades: Go long if the currency exchange price touches support and goes back up + positive stoch cross from below 20 (see chart above)

2b) For short trades: Go short if the currency exchange price touches resistance and goes back down + negative stoch cross from above 80.

AUD/USD Buy Trade Explanation

1) AUD/USD price touches a significant support level and goes back up. (AUD/USD holds support)

2) The gray circle indicates the time to go long in the market @ 0.8365 (Stoch cross from below 20)

3) Stop loss is set 3 pips below the most recent level of support @ 0.8314

4) Total trading risk: 51 pips. (entry price – stop loss price)

5) Trade objective: 5 pips below resistance @ 0.8502 ( 137 pips)

RESULT: The AUD/USD long trade was successfully closed for 137 pips the same day.

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