Wysetrade

Support and resistance not only acts as levels for possible entries but also levels for possible exits.

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NZDCAD Monthly Time Frame

As you can see price has reached a very key monthly level that has acted as both support and resistance and many traders could have gone long here if it suits the entry criteria. We do not use the monthly for an entry but we use it to identify where the key dynamic levels are as guidance for our overall analysis. We then go to the weekly for further insight.

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NZDCAD Weekly Time Frame

As you can see price bounced from the key level of monthly support and has reached the next level of key resistance.

Now we are not saying that price cannot easily blow right through this level of key resistance as once price starts moving with momentum it can easily continue on and on but as traders, we always want probability on our side meaning choosing not only high quality trade "entries" and "entry levels", but also trade management meaning good "exits & profit targets". Your trade management is just as if not more important than your trade entry.

Now there are many ways to capitalize on bigger moves, such as moving your stop loss to break even once price reaches your profit target incase price comes back, or you can always wait for price to break through the level that is in the way and look for a re-entry.