Support and resistance as horizontal lines - forex trading times uk

Support and resistance as horizontal lines ~ forex trading times uk

 The basic technical measurement of horizontal support and resistance provides the ground floor of technical analysis. Whenever you look at a currency pair, you have to ask where support is and where resistance is. The answers provide the first mapping of the market.

Support is where the price stops falling, and resistance is where it stops rising. The process for locating support and resistance is fairly straight forward. In picture 1 includes several support and resistance lines. Those lines that form floors and ceilings are outer support and resistance containing the price action within a range. Those lines that are inside these larger lines are inner support and resistance.

What is most significant about horizontal support and resistance lines is that they are not lagging. In contrast to indicators, they are projections and form psychological hurdle ones. When price establishes support or resistance, the market recognizes that location as a zone or hurdle that has to be overcome. The immediate future price movements need to probe and penetrate a support or resistance line. One of the first principles of trading forex is to locate a trade near support or resistance.

Once we know where horizontal support and resistance are, we need to also determine the strength of that support and resistance. There are different ways of forming an opinion about the level of strength in the S/R lines- In Picture.1, we can see that the 1.1649 level offers strong support because over 18 months that price point was unable to be broken down and the euro–U.S. dollar (EURUSD) held above it. In contrast, the resistance levels show only one test of the previous high. The trader can conclude that there is greater strength on the support side at 1.1649. If the price moved toward the previous high (1.3689 on 2004/12/01) and failed to go through it, confidence that resistance was stronger at that level would increase. The time interval on a chart also can be used to weight one’s confidence about how strong the S/R levels are. The longer time frames such as monthly and weekly resistance and support are more robust. After all, a great deal of money has had the chance to go through those levels but did not.

In constructing support and resistance lines, the trader needs to realize that there is a degree of judgment. In picture 1, the support and resistance lines are drawn where there appears to be a set of highs and lows. Some of the candlewicks are penetrating the lines. Those penetrations would be viewed as creating temporary levels of new support and resistance, with the stronger levels being those connecting more points. Drawing support and resistance lines need to be done with the perspective that these are zones and not exact lines.

In picture 1, the breakout of the level of 1:3689 has produced a bullish movement important.

Support and resistance as horizontal lines

In picture 2 USD / JPY (above)Horizontal levels based on support and resistance monthly. Note how the breaking of a level causes a reaction of the price.

Support and resistance as horizontal lines quiz

1. What is Support line?

• Support is where the price stops falling
• Vertical line
• Trend line down that touches imaginary points

2. What is the Resistance line?

• A diagonal line
• Trend line up that touches imaginary points
• Resistance is where it stops rising

3. What he needs a projection of the price?

• Draw a trend line
• The last five Bid and Ask
• Penetrate a support or resistance line

Score =

Correct answers:

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Fibonacci levels support and resistance - forex trading hours utc

Fibonacci levels support and resistance ~ forex trading hours utc

The Fibonacci sequence describes key ratios from growth in plants, human anatomy, and so on. The forex application is to price movements, which appears to realize Fibonacci ratios. This is particularly obvious on larger time frames such as weekly, daily, and 4-hour time charts. A large move from a low to a high is often followed by an attempt of the price to move back or “retrace” the original move. These areas of rest are Fibonacci points. For example, let’s look at a chart showing a price move on the euro–U.S. dollar (EURUSD) 4H chart chart (see picture1).

We can see that the EURUSD made a low at 1.3525 and then proceeded to forma high at 1.3637. Once this move was completed, the trader can use a Fibonacci (Fib) graphic tool, which is available on all platforms to draw a Fib line. The Fibonacci retracement are:

23.6% the shallowest of the retracements;

38.2% this is the first line of defense of the current trend.;

50% the neutral point of any retracement.;

61.8% retracing to this typically signals a breakdown in the trend;

100% matching the move;

other potential lines are: 138.2% , 161.8%, 200%.

Since the price started from the low, the Fib tool assigns the 100 percent level to this origin point. The best way to interpret this is to think of the price going all the way back home to where it started. It would achieve a 100 percent retracement. Once the low and the high are connected, the Fib graphic tool draws the lines and projects it out. Notice that these Fib lines are extended into the future. The trader doesn’t know if the price will get there! The trader makes the assumption that if the price is able to get to a Fib level, it will experience strong support or resistance. Also, if the price is able to probe a future Fib level but fails to go through it, the trader can make a reliable assumption that there is key support at that level.The price moved from the low of point A to the high of point B and then proceeded to retrace or fall back.

The Fibonacci levels are maps of potential support or resistance. They are areas where great care should be taken by the trader. Rest assured that any professional trader knows where the key Fib levels are. Perhaps because these levels are projected and therefore known in advance, they generate a self-fulfilling process and increase in importance.

The price moved from the low of point A to the high of point B and then proceeded to retrace or fall back

Fibonacci Quiz

1. What are the Fibonacci levels ?

• 0.236%, 38.2%, 50%, 61.8%
• 1.23%, 0.38%, 0.61%, 0.76%
• 50.0%, 12.3%, 63.8%, 92.7%

2. What may represent Fibonacci levels?

• Fibonacci levels are only imaginary points
• Fibonacci leveles are dynamic points
• Fibonacci levels are potential areas support or resistance

3. (Fib) Graphic tool what to do?

• Draws magic lines for fx prediction.
• Draws the ratio of Elliott wave
• Draws the ratio lines and projects it out

4. What are the best time frame where to apply Fibonacci lines?

• All time frame are good
• 4H, daily, weekly, monthly
• 1 min, 1 sec, 5 min, 10 min

Score =

Correct answers:

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19 octombrie 1987 LUNEA NEAGRA - forex trading demo software download

19 octombrie 1987 LUNEA NEAGRA ~ forex trading demo software download

Azi, este prima data cand ziua de 19 octombrie pic? într-o zi de luni, dupa anul 2009.  Azi îns? v? invit s? v? aduce?i aminte de ziua de luni, 19 octombrie 1987 cand pia?a de capital a înregistrat o c?dere de 508 puncte într-o singur? sesiune de tranzac?ionare. Indicele Dow Jhones Average a pierdut atunci, nu mai pu?in de 22,6 %. Cea mai mare pierdere procentual? înregistrat? vre-o dat? într-o singura zi, închizand ziua de tranzac?ionare  la 1 738.74.

Pe prima pagina a ziarului New York Times a doua zi puteam citi “Does 1987 Equal 1929?”.
Ziua de luni, 19 octombrie 1987 a r?mas în istoria burselor sub denumirea de Lunea Neagr?. Din cand în cand este bine s? ne reamintim aceste momente ale trecutului pentru c? ele, invariabil, se repet? ?i a?a cum am tot scris pe acest blog, de atata timp, luna octombrie 2015 este momentul perfect din punct de vedere al ciclurilor economice ca pia?a s? înregistreze startul unei crize mult mai grave decat cea din 2008. O criz? ce poate s? se prelungeasc? pan? în anul 2020. O criz? nu doar economic? ci ?i social politic?. 

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