Learn Foreign Exchange: How to interpret Support and resistance levels
When you reach a certain level of understanding of how Forex market works, you become aware of great importance to support and resistance levels.
Although the Internet is populated with a large collection of strategies and rules on this subject, I always found it difficult to understand what lies beneath and how to reliably pinpoint the exact level of inflexion table.
This article refers to the subject of my single and well-known style. I will share with you my knowledge and optimal access to them, trying to extract the essential and will propose a simple but effective way to show a steady profit.
S / R levels are a product of the battle between vendors and customers for their everlasting attempt to turn a profit from their market expectations.
This is always dictated by the big players and small arms only came to add momentum to a change in direction.
This observation becomes significant for larger time frame chart, given the vast size of this market (more than 1.5 trillion dollars a day).
That is why all the technical analysts advise you to wait for the change in direction to occur, and to avoid initiating positions in anticipation of support or resistance level. This is true because no one knows if the big guys still want to defend that level.
Of course, they will pack their analysis in vivid colors and modern expression, but the naked truth is above one.
The advent of so-called "Digital options" big players bring to the table. These are the "casino-style" bets, using terms like "one touch" barrier "has not reached double 'barrier and similar others. Simply put, I bet that if the rate applies to certain manner, through a period of time, you get paid a certain sum of money, in accordance with the "prospects" like a horse race betting. For example, you can bet that the EUR / USD, currently trading at 1.2300, you will not go above 1.2400 for the next seven days trading. If this scenario plays well for you, the broker will be paid in accordance with the odds bet.
This "digital options", along with their "classic options" relatives, are a major supplier of S / R levels in the foreign exchange market, as players choose very specific levels for their bets.
As is the case with all people, we tend to simplify things, this approach results in "round numbers" for our bets. It is unlikely that you will go to 1.2328 level and more likely to 1.2350 or 1.2300 is our choice.
This mechanism initiates a fairly predictable structure of S / R levels on each exchange scheme and most are clear, full, round numbers like 1.2000, 1.2100 1.2200, or, if you want to EUR / USD pair as an example.
While I accept that there is more to this presentation, a good understanding of these two concepts, the big players and round numbers, would greatly enhance any commercial activity.
In the process, remember that news and economic calendar can play an important role in the formation of levels S / R and they tend to be fiercely defended by an important trade operators.
Word Trend lines is appropriate here.
Trend lines are the result of the formation of levels S / R is not a way to form, even if the quasi totality of analysts is presented as a method of prediction. They are a great help for the big guys, and they will easily show you where the majority of traders will place their orders. I tend to give secondary importance in comparison with round numbers and news related inflexions.
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- best forex buy and sell indicators
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- volty channel stop v2 1 indicator polynomial
- the best indicator to find hi lo
- download swing zz indicator in forex
When you reach a certain level of understanding of how Forex market works, you become aware of great importance to support and resistance levels.
Although the Internet is populated with a large collection of strategies and rules on this subject, I always found it difficult to understand what lies beneath and how to reliably pinpoint the exact level of inflexion table.
This article refers to the subject of my single and well-known style. I will share with you my knowledge and optimal access to them, trying to extract the essential and will propose a simple but effective way to show a steady profit.
S / R levels are a product of the battle between vendors and customers for their everlasting attempt to turn a profit from their market expectations.
This is always dictated by the big players and small arms only came to add momentum to a change in direction.
This observation becomes significant for larger time frame chart, given the vast size of this market (more than 1.5 trillion dollars a day).
That is why all the technical analysts advise you to wait for the change in direction to occur, and to avoid initiating positions in anticipation of support or resistance level. This is true because no one knows if the big guys still want to defend that level.
Of course, they will pack their analysis in vivid colors and modern expression, but the naked truth is above one.
The advent of so-called "Digital options" big players bring to the table. These are the "casino-style" bets, using terms like "one touch" barrier "has not reached double 'barrier and similar others. Simply put, I bet that if the rate applies to certain manner, through a period of time, you get paid a certain sum of money, in accordance with the "prospects" like a horse race betting. For example, you can bet that the EUR / USD, currently trading at 1.2300, you will not go above 1.2400 for the next seven days trading. If this scenario plays well for you, the broker will be paid in accordance with the odds bet.
This "digital options", along with their "classic options" relatives, are a major supplier of S / R levels in the foreign exchange market, as players choose very specific levels for their bets.
As is the case with all people, we tend to simplify things, this approach results in "round numbers" for our bets. It is unlikely that you will go to 1.2328 level and more likely to 1.2350 or 1.2300 is our choice.
This mechanism initiates a fairly predictable structure of S / R levels on each exchange scheme and most are clear, full, round numbers like 1.2000, 1.2100 1.2200, or, if you want to EUR / USD pair as an example.
While I accept that there is more to this presentation, a good understanding of these two concepts, the big players and round numbers, would greatly enhance any commercial activity.
In the process, remember that news and economic calendar can play an important role in the formation of levels S / R and they tend to be fiercely defended by an important trade operators.
Word Trend lines is appropriate here.
Trend lines are the result of the formation of levels S / R is not a way to form, even if the quasi totality of analysts is presented as a method of prediction. They are a great help for the big guys, and they will easily show you where the majority of traders will place their orders. I tend to give secondary importance in comparison with round numbers and news related inflexions.
other posts
- best forex buy and sell indicators
- urban towers mq4
- volty channel stop v2 1 indicator polynomial
- the best indicator to find hi lo
- download swing zz indicator in forex
