Forex traders to earn the foreign exchange market is necessary to a proper understanding and definition of support and resistance levels.
The levels of support and resistance, when used with other interpretations of the price action is more effective than lagging indicators, if you know and know how to use them.
The problem is that the forex market newcomers These values are not used properly. Here are some tips to help fix this problem.
Do not draw support and resistance levels to confirm the trade idea. For example, you read over the weekend that the EURUSD will decline. Such an assumption is expressed is not the first time it is put forward in many sources, so you are sure that you want to enter a short trade with EURUSD.
The problem is that the Cubs open a drawing and seek the support and resistance levels, which correspond to their trade idea. This is fundamentally wrong. Why?
Because these levels - is nothing more than a combination of two price points. A trader can make these levels on any chart, and confirm this way virtually any transaction. But the support and resistance levels are not true, if they fail to comply with the rest of the market. And the only way to find them - notice very obvious levels.
Not tricky with support and resistance lines. Beginners forex players tend to draw level with the real body, a wick, or mixing both. They do this because they are afraid to miss out on the deal.
Support and resistance levels are there to provide you with market model, to show the dynamics, to identify the ups and downs. And the right way to trade is to wait it until prices reach the obvious support and resistance levels.
Do not deceive yourself just because you're afraid to miss a deal in the preparation of these levels. Take the best of this emotion, taking action only on the basis of obvious levels.
Based on materials PaxForex
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Forex Analytics → Forex forecast for today 16.09.2016: EUR / USD - Flete
Forex Analytics → Forex rate forecast EUR / USD 16.09.2016
Forex Analytics → Forex rate forecast USD / JPY 16.09.2016
