Support and resistance are two of the most frequent forex terms you will come across in technical analysis. Simply put, support refers to a floor in price action where a downward movement changes course. On the other hand, resistance stands for a ceiling in price action where an upward movement reverses. A good rule … Continue reading Support and Resistance
Forex traders often say that “The trend is your friend” because a market uptrend or downtrend provides several reliable opportunities to catch pips. During these kinds of market behavior, trend lines and channels can be the most reliable technical analysis tools. Trend lines are drawn simply by connecting the recent highs or lows of price … Continue reading Trend lines and channels
Pivot point calculation can be tedious for some but there are traders that find this method very reliable when coming up with shorter-term trade setups. Trading the news or economic events can also be combined with intraday setups using pivot points. In particular, range traders look at pivot points for potential reversals in price action. … Continue reading Pivot point calculation methods
There are several types of horizontal inflection points that can be employed in forex technical analysis. Among these, the most common ones are the psychological round numbers, which tend to hold well as support or resistance for major currency pairs and yen pairs. Major psychological levels refer to price levels ending in 00, such as … Continue reading Different types of inflection points
Fibonacci retracement levels, which are commonly used to specify potential entry levels during a trending market environment, comprise another group of inflection points. These retracement levels were based the work of Leonardo Fibonacci, who is a famous mathematician known for his discovery of the golden ratio. According to Fibonacci, this ratio describes the natural proportion … Continue reading Fibonacci Retracement
