In the second part of the story will be about the levels of support and resistance. This is all my personal achievements, which I did during my training. Any indication of the only levels I hope you article will help in this case is not easy forex trading.
Support and resistance levelsAt these levels, changing the distribution of buyers and sellers, as the price dictates the supply and demand ratio. Recall the law:
"If the desire and ability to buy exceeds the supply in the market, the price increases. In the reverse situation, when the sentence above demand, the price will go down. "

Does not really react to price support and resistance levels, and traders. The big players just concentrated on them their orders, waiting for the price breaks the next frontier. In this case, the levels are reversed.

If one day the majority of the big players decide to urgently close a deal to buy and start selling, the market will fall sharply. Thus, it becomes clear that these levels do not affect the situation in the market, but rather demonstrate the balance of power.



Next we will focus on the false breakouts and rebound.
Sooner or later, the market is changing. Price, pausing in the channel, makes a breakdown in one of two directions - rising or falling. This moment must anticipate the trader before opening the transaction.
Breakdown call out the prices beyond the level of support and resistance, followed by the price movement in this direction.
For example, for a long time the trend was downward, and the price is moving in the channel. But at the end of the chart you can see how the price breaks the trend line, which was the resistance level, after which there was a strong movement of the currency pair up. If you open a buy order slightly above the price channel, subject to risk management, it is possible to make a good profit in this situation.



Thus, the sample - is the price leaves the price level from which it once fought price. But there are false breakouts and where the price is only slightly beyond the border line of support or resistance, and then comes back. False breakouts occur in the case where a number of participants has opened up the deal, but their weight is not enough to seriously affect the price. In order to weed out false breakouts trader must wait for confirmation of the fact that the price is really ready to go in the direction of the breakdown. This proof may serve as a closure of the bar above (after hitting up) or lower (penetration down) resistance or support level. Also a good sign testifying to the truth of the breakdown is to fix prices above or below the level of the punched. For example you can look at the pictures, which provides details of what are the breakdowns:


In the next article, we discuss in detail chart patterns.
I hope you liked the article will continue to be more useful information by which you will be able to actually trade on forex roar and achieve great success on it. All the best, if the article is put like Like.
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