Support / Resistance Strategies In Forex Market
In order to be successful, any novice trader needs to learn what support and resistance levels. These tools make it possible to determine the real trend is present in the Forex market as well as timely signals about the beginning and the end of price momentum. Support and resistance levels are straight lines drawn through the points of local minima and maxima. An area price, when most of the traders start to create the purchase order is called the level of support. The level of resistance, on the other hand, is an area of price, at which the majority of traders beginning to open sell orders.
Uptrend is such a situation in the market, when each of the points through which the support and resistance lines, located above the previous. If corrective decline reaches the level of the previous one, it is one of the main signs that the upward trend will soon end. In a downtrend, the market situation is the opposite. Overcoming strong resistance level on a certain amount of turns it into a level of support and resistance levels of penetration makes it a resistance level. This situation is a consequence of the psychological characteristics of the behavior of the majority of traders in Forex market
To start trading, based on support and resistance lines, enough to get a little practice in the construction of such graphs. Practice a few days on the demo accounts . Also good service makes educational trading terminals with already pre-recorded commercial history. You will find segment, distancing him determine local minima and maxima, and then expose the level of support and resistance. Further, in an accelerated mode can rewind the movement of the market to understand the direction of your theoretical trades. This knowledge is the basis for self-trading in the Forex market and the basis for creating your own strategies.