Learning how to identify areas where many barriers exist can be very profitable for traders. Many types of price barriers exist in the Currency trading market. It is common for currency pairs to change direction at these barriers. When traders learn the ways they can put them together, traders may make a plan of trading with better chances to make good trades. Some common barriers include support and resistance levels, psychological barriers, and Fibonacci levels. Barriers on trend lines and at pivot points can also strengthen our analysis. Now we will look at the different types of barriers common in the FX market.
Support and Resistance Levels
Resistance and support levels are huge turning points that the market has consistently respected in the past. When the market respects them more, then they become stronger Support is identified as the turning point where the buyers took control and the currency pair began to rise. Resistance is any part at which the market stopped rising and dropped down. Resistance and support levels on larger time charts are considered more significant than those on smaller time charts.
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Support and Resistance Levels
Resistance and support levels are huge turning points that the market has consistently respected in the past. When the market respects them more, then they become stronger Support is identified as the turning point where the buyers took control and the currency pair began to rise. Resistance is any part at which the market stopped rising and dropped down. Resistance and support levels on larger time charts are considered more significant than those on smaller time charts.
[Read full article]
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