![\"Support](\"https:\/\/www.optimusfutures.com\/tradeblog\/wp-content\/uploads\/2015\/10\/Support-and-Resistance.png\")
<\/a><\/p>\nAggressive \u2013 neutral – conservative<\/strong>
\nIn the case of a resistance level, let\u2019s assume that you are looking for a sell trade when price reaches the resistance level. With three resistance levels in place, you have the agony of choice which one to pick for your trade. Which level you chose depends on your willingness to accept risk:<\/p>\nAggressive<\/strong>
\nThe first resistance level; you will rarely miss trade-entries but, on the other hand, you will get stopped out more often when price breaches through the first level. This strategy is ideal for traders who can handle a lower winrate and for traders who do not like to miss trade-entries.<\/p>\nConservative<\/strong>
\nThis level is the farthest away and price will not reach your level as often. The conservative level is ideal for the risk-averse trader who can\u2019t deal well with a lower win-rate. But, placing your orders at the conservative level usually means that you are going to miss trades when price turns ahead of your level.<\/p>\nNeutral<\/strong>
\nThe mid-level is the level which most traders will lean towards. It is a good compromise between an aggressive strategy where you will experience frequent losses and a conservative approach where you will often miss trade entries.
\nTip: Even if you only see 2 clear support or resistance levels on your charts, you can draw an additional line in the middle and create the \u2018neutral\u2019 zone.<\/p>\nMultiple entries using the three-level-concept
\nIf you feel that picking only one level alone does not sound like a good enough strategy, there is another possibility how you can use the concept of support and resistance zones. If we go back to our previous example, you can use the three levels to split your order among the different areas. Again, there are many ways to go about it and neither is \u2018right or wrong\u2019.
\nFor example, if you want to risk 3% on the trade in total, you could enter three different positions, using 1% on each entry. Now there are endless possibilities to how you could structure your position size using the concept of support and resistance zones. A more aggressive trader will usually enter the majority of his position on the first level and a conservative trader will only use a small part of his total position on the first two levels.<\/p>\n