Try Support and Resistance on Olymp Trade

Draw the levels

Start with the chart you already have open. A level is any horizontal price area the market has visibly respected more than once, and marking it takes a few clicks rather than a formula.

Support and resistance describes memory rather than prediction. When price has stalled at a particular area before, some traders remember it, place orders around it, and their orders make the area matter again. Nothing about that mechanism guarantees a reaction the next time, which is exactly why the drawing stage should be conservative.

Prior highs and lows

Scroll back on the chart and look for the obvious turning points: the price where a rally stopped twice, or where a decline found a floor and bounced. Those are your candidates. On Olymp Trade the horizontal line tool is enough; you do not need a custom indicator for this.

• Mark the area, not the exact tick. Price rarely turns at one number, so a thin band is more honest than a hairline.
• Prefer levels touched at least twice. A single touch is a coincidence until the market repeats it.
• Note whether the level held on a wick or on a close. Closes carry more weight than shadows.

Round numbers

Whole and half numbers attract orders because humans think in round figures. On currency pairs those levels often overlap with prior highs and lows, and the overlap is what makes an area worth watching. When a round number and an old swing point sit together, the area has two reasons to matter instead of one.

Keeping it uncluttered

The common failure here is drawing twenty lines and then finding a level under every candle. If everything is a level, nothing is. Keep three or four on a chart, delete the ones price has already sliced through without reaction, and redraw as the session develops. Traders who keep a trading journal usually find that their cleanest charts produced their clearest decisions.

Draw no more than four levels on a demo chart today and screenshot them, so you can check tomorrow whether price actually respected the areas you chose.

Trade the bounce

Bounce trading means betting that a level holds. The setup is a rejection at the line followed by a candle that confirms it, and the hard part is refusing every approach that arrives without confirmation.

A bounce setup assumes the area you marked still has orders sitting behind it. That assumption is right sometimes and wrong sometimes, and there is no way to know the split in advance. Anyone quoting you an accuracy figure for a support bounce is quoting a number they cannot have.

Reaction at a level

Watch what price does as it arrives. A sharp approach that slams into the area and stalls is a different event from a slow drift that oozes through it. The reaction you want is visible: a long wick into the level, a stall, momentum draining out of the move.

1. Wait for price to reach the marked area rather than anticipating it from a distance.
2. Watch one full candle complete at the level before forming any opinion.
3. Check the direction of the wider trend on a higher timeframe; bounces against a strong trend fail more visibly.
4. Decide in advance which candle would cancel the idea, and honour that decision.

Candlestick confirmation

Candlestick patterns are the usual filter here: a pin bar, an engulfing candle, or a doji that shows the push has stalled. The pattern is not proof. It is evidence that sellers or buyers stepped in at the area, and it lets you skip the approaches where nothing stepped in at all. Combining a level with a confirming candle removes some of the worst entries, not the risk.

Defining the expiry

On Fixed Time Trades your directional view must also be a timing view. A bounce that plays out over an hour does nothing for a 1-minute expiry. Match the expiry to the timeframe you read the level on: signals taken from a 1-minute chart belong with short expiries, and a level drawn on a much slower chart needs room to work. Getting the direction right and the clock wrong still loses the whole stake.

Log twenty demo bounce attempts with the confirming candle noted for each, then see how many you would have skipped under a stricter rule.

Trade the breakout

Breakouts flip the logic: instead of the level holding, you trade the moment it gives way. The payoff is a fast move; the cost is that most breaks look convincing for a few candles and then reverse.

Every level that ever mattered eventually broke. Breakout trading tries to catch that transition, and it is where beginners lose the most because a break in progress looks identical to a break that is about to fail.

Confirmed breaks

A close beyond the level carries more information than a wick through it. Ask for the close, ask for it on the timeframe you drew the level on, and treat volume or momentum expansion as supporting evidence rather than a requirement. A moving average pointing in the direction of the break gives the idea some trend-following context, which does not make it safe.

• Close beyond the area, not merely a touch beyond it.
• Movement away from the level rather than an immediate stall on top of it.
• Broader trend not fighting the break on the higher timeframe.
• No major economic calendar release landing mid-position, which turns any chart read into a coin toss.

Avoiding false breaks

False breaks happen because stop orders cluster just past obvious levels. Price reaches them, triggers the cluster, and returns. Nobody can filter this out completely. What you can do is refuse to enter on the first candle that pokes through, and accept that this rule will cost you some real breakouts. The RSI indicator, read on its 0-100 scale, sometimes helps show whether a break has any push behind it or is already stretched.

Waiting for retests

The patient version waits for price to break, move away, then come back to the broken level and hold it from the other side. Old resistance acting as new support is the classic sequence. Retests occur less often than breaks, so this rule cuts your position count sharply, and that trade-off is the point: fewer positions, cleaner evidence, the same full-stake risk on every one of them.

Trade only retest entries for one full demo week and count how many setups the rule removed compared with entering on the first break.

Manage the risk

Level trading gives you entries; it gives you nothing on the money side. Position sizing, level quality and honest review are what stop a run of failed bounces from ending an account.

Here is the arithmetic that governs all of this. Payouts on fixed-time positions sit below 100%, so a winning position returns less than a losing one takes away. That gap forces the win rate you need just to break even above 50%. The exact figure depends on the current payout, which changes by asset and conditions, so check it in the platform before you act rather than trusting any number written on a page like this one.

Fixed sizing

Choose one small fraction of your bankroll and stake it identically on every position. Fixed sizing does two things: it makes your results readable, and it stops the doubling reflex after a loss. Raising the stake to recover a losing position is revenge trading with a chart in front of it, and it is the fastest documented way to empty a balance.

Skipping weak levels

Not every line you drew deserves a position. Rank them before the session starts: how many touches, how clean the reactions were, whether the level lines up with a round number or a higher-timeframe area. Trade the top of that ranking and let the rest go. Over-trading marginal levels is the habit that turns a workable framework into noise.

Reviewing outcomes

Record every position in a trading journal with the level, the confirmation, the expiry and the outcome. After thirty entries you will see patterns nobody can tell you in advance: which of your levels the market ignores, which expiries were too short, which sessions produced nothing. That personal record is worth far more than any external claim about how well support and resistance performs.

Set one fixed demo stake now and refuse to change it for thirty positions, whatever the run of results looks like.

Levels takeaway

Where does this leave you? With a framework that organises a chart honestly, produces clear entries and clear skips, and carries exactly the same full-stake risk as every other approach on the platform.

A useful framework

Support and resistance earns its place because it is visual, quick to apply and compatible with almost everything else. It layers cleanly under candlestick patterns, a moving average, MACD or the RSI indicator, and it gives you a reason to say no to a position, which most beginners lack entirely. On Olymp Trade it needs no setup beyond a horizontal line.

Its false signals

The failure modes are well known and they do not go away with practice:

• Levels break, and the break often comes without warning on the timeframe you are watching.
• False breaks trigger stops around obvious areas by design, not by accident.
• News events override chart structure completely for minutes at a time.
• Ranging markets produce levels everywhere and conviction nowhere.

None of that makes the tool bad. It makes any claim of a specific success rate for it dishonest, because such a rate would depend on your levels, your filters, your expiries and the market you traded.

A cautious summary

Treat levels as a way to structure decisions, not as a source of predictions. Keep the position size fixed, keep the level count low, keep a journal, and remember that a losing Fixed Time Trade costs the entire stake with no partial recovery. Availability and the legal status of fixed-time trading differ by country and change over time, so check your own regulator and the platform terms. Platform details change — check the current figures on the official Olymp Trade site; this page was last reviewed in August 2026.

Rehearse the whole routine on a demo account for a fortnight, and only fund a live balance once your journal shows you following your own rules.