The detection and identification of points of support and resistance is fundamental to success in any financial market, forex trading is no different. Only with a deep understanding of price action signals can be inferred, much earlier than that would allow traditional indicators, such as price level would do better in relation to these areas.
‘S the price analysis can be used with any period of time, since it fits very well. Obviously, the timing may be shorter than indecisive and give a series of false alarms. When operating with the price action you can think of several times to test the areas of support and resistance, drawing trend lines and channels, etc., developing a number of highly profitable trading systems.
This operation works with all currency pairs. From the time it describes the real and psychological activities of traders who trade these pairs, one can see similar principles behind the movement of prices of all currency pairs, by identifying repeating patterns.
‘S share price analysis is based on the fundamental dynamics of market movement, so there will never be exceeded. It is a well known fact, which always creates the difference between the operating manual and done with robots, since the latter can not be very precise in this sense. The indicator come and go, but the principles of price action remain valid for as long as financial markets operate, since they will be powered by the forces of supply and demand.
That’s why it’s important to learn how to study the prices to see which way they move and how you can do to improve their trading in the currency market, also known as Forex.