The support and resistance (S/R) price action strategy is a popular trading method that focuses on price behavior at key levels. These levels are primarily the main horizontal and diagonal S/R zones on a price chart. Horizontal S/R zones are confirmed by areas of accumulation or tight ranging, indicating a balance between buyers and sellers. 

Traders employing this strategy analyze specific candle patterns around these key levels and observe the cycles of accumulation, distribution, and trending. Accumulation occurs when price moves within a tight range after a break, followed by distribution in a wider range above the previous break, with strong moves in the direction of the main trend.

The strength of S/R levels increases as the price fails to break them repeatedly. Stronger S/R levels are typically tested on both sides, and price tends to respect them. Combining Fibonacci levels, daily pivots, and trendlines with these S/R zones creates even stronger zones with higher probability trades.

Traders use various indicators in this strategy, such as S/R levels, daily pivots, price action (chart and candle patterns), Fibonacci levels, and trendlines. They can adapt the strategy to different time frames, from day trading to medium-term trading, using 4-hour and daily charts to set global S/R levels.

Instruments like the major currency pairs (EUR/USD, GBP/USD, EUR/GBP, USD/CHF, AUD/USD) and yen pairs (EUR/JPY, USD/JPY) are preferred, but the strategy can be applied to any currency instrument. The risk-to-reward ratio should ideally be 1:3 or higher, with risk parameters set at a maximum of 2 percent of the equity for high-probability trades and 1 percent for lower risk-to-reward ratio transactions.

The strategy has been thoroughly back-tested and forward-tested on various currency pairs, demonstrating an average win/loss ratio of 60:40. Traders can find approximately two to three good trade setups per currency pair in a month.