If you’ve been in the forex game for a while, you know that two things matter the most: understanding where the market might turn and knowing how to ride a trend when it takes off. That’s where the FRAMA and Support and Resistance MT5 Strategy comes in. It’s simple but effective, combining a dynamic moving average (FRAMA) with tried-and-true support and resistance levels to help you make confident trading decisions.

Let me break it down for you.

What is FRAMA?

The Fractal Adaptive Moving Average (FRAMA) is like a moving average on steroids. It adapts to market conditions, meaning it becomes more responsive during volatile trends and steadier during quieter periods. This is huge because it helps you avoid lag and stay closer to what the market is doing.

Here’s how it works in practice:

• Upward slope: Signals an uptrend.
• Downward slope: Signals a downtrend.

Unlike a simple moving average that sticks to fixed periods, FRAMA adjusts itself based on market price action. This makes it perfect for identifying when a trend is gaining or losing strength.

What About Support and Resistance?

Support and resistance are a main part of any good trading strategy. These are psychological levels where the price tends to stall or reverse:

• Support: A level where buyers step in and stop the price from falling.
• Resistance: A level where sellers step in and prevent the price from rising.

By combining these levels with FRAMA, you can identify not only where the market is likely to react but also how strong that reaction might be.

Why Use These Together?

The beauty of combining FRAMA with support and resistance is that you’re getting two layers of confirmation:

1. FRAMA tells you if the market is trending or consolidating.
2. Support and Resistance MT5 tells you where the price is likely to react.

This setup helps you time your entries better and avoid getting caught in false breakouts.

How to Trade the Strategy

Let’s walk through the steps for both buy and sell setups.

Buy Setup (Going Long)

1. Find a Support Level: Look for a key level where the price has previously bounced. This is your first clue that buyers might be waiting there.
2. Check FRAMA: Make sure FRAMA is sloping upward. This confirms the market is in an uptrend and aligns with the potential bounce off support.
3. Wait for the Price to Approach Support: Don’t rush in. Let the price move closer to the support level.
4. Look for Bullish Confirmation: Watch for bullish candlestick patterns like a pin bar or engulfing pattern near the support level. This is your green light.
5. Enter the Trade: Place your buy trade once all the conditions align.
6. Set Your Stop-Loss: Place your stop-loss just below the support level or the recent swing low. This keeps your risk small.
7. Take Profit: Aim for the next resistance level or use a trailing stop to lock in profits as the price moves up.

Sell Setup (Going Short)

1. Find a Resistance Level: Look for a key level where the price has previously reversed or stalled. This will act as your line in the sand.
2. Check FRAMA: Make sure FRAMA is sloping downward, confirming a downtrend.
3. Wait for the Price to Approach Resistance: Again, patience is key. Let the price move closer to the resistance level.
4. Look for Bearish Confirmation: Watch for bearish candlestick patterns like a shooting star or bearish engulfing pattern near the resistance level.
5. Enter the Trade: Enter your sell trade when everything lines up.
6. Set Your Stop-Loss: Place your stop-loss just above the resistance level or recent swing high.
7. Take Profit: Target the next support level or use a trailing stop to capture additional profits if the price keeps dropping.

Latency: 0.46 ms 2 Weeks Free Trial 100% Free for 24 Months

Start Trial label Licensed Window Server 2022

	Low Spreads Leverage up to 1:500* No Commission	Free TradingView Premium* Register label FREE VPS for Traders*
	Min Deposit of 50$ Allow USA Traders Levergae up to 1:2000	Register label

Download a Collection of Indicators, Courses, and EA for FREE

Why This Strategy Works

This strategy works because it combines two powerful tools:

1. FRAMA adapts to changing market conditions, giving you a dynamic view of the trend.
2. Support and Resistance provide clear levels to watch for potential reversals or breakouts.

By layering these tools, you’re not just guessing—you’re making decisions based on what the market is telling you.

Tips for Success

1. Stick to Key Levels: Not all support and resistance levels are equal. Focus on those that have been tested multiple times.
2. Trade Active Sessions: Use this strategy during the London and New York sessions when volatility is higher.
3. Avoid Overtrading: Wait for all the conditions to align. If something feels off, skip the trade.
4. Use a Demo Account First: Test this strategy on a demo account before putting real money on the line.

Free Download FRAMA and Support and Resistance MT5 Strategy

Read More Best Currency Correlation Forex Indicator mt4 Free Download

Final Thoughts

The FRAMA and Support and Resistance MT5 Strategy is perfect if you’re looking for a reliable, straightforward approach to trading forex. By combining a dynamic moving average with key price levels, you can make more informed decisions and improve your trade timing.

Give it a try on your MT5 platform and tweak it to suit your trading style. Just remember, no strategy is foolproof, so always manage your risk and stay disciplined.

Happy trading!