SUPPORT AND RESISTANCE
Each trend will end if the increase will reach its peak, and then stopped rising and continues to decrease, and vice versa when the price goes down, there will be a point where the decline stopped and the prices go up, the point where the rising and falling prices stop is called, the point support and resistance,
Support = point trend change from down to up trend
Resistance = turning point of the rising trend to trend down
Point of support and resistance vital in FOREX trading, without knowing the point, can only follow the trend, without knowing that the actual age of the trend would not be much longer, will be replaced with the opposite trend or way-side situation, to determine the point of support and resistance is, with know the lowest and highest price movements in previous days, at a certain period for example one month, the point of support and resistance actually is, a reflection of the psychological point that is recognized by market participants simultaneously, because price movements are basically determined by the laws of demand and supply, when demand rises , while supply remains, then the currency will strengthen and conversely, when supply and demand much fixed, then the currency will weaken because the number of outstanding supply market, such as pricing in the state of an uptrend, when prices began creeping up, then traders will follow the trend is happening and take a buy position, this resulted in rising demand, so prices continue to boost up, but the other side of the majority of traders are also anticipating the end of the trend, by taking a specific resistance point, at that point they no longer have to buy the action, otherwise they will do profit taking, by selling the currency that they had bought earlier, if everyone does so it automatically reduced demand, and an increase in the currency began to lose strength, consequently, prices will again move down, so the key to trading is much easier how to determine the point of support and resistance the same point of support and collectively market resistance
Resistance point of support and can be penetrated by the price movement, in which buyers and sellers win less, then the price will continue to rise despite already reached the point resistance, in the circumstances, the actual point of support and resistance vote on the markets is not uniform / equal, and divided into several groups, one group estimates that prices will not rise until a certain level, while another group believes the price could go up past the first level of the specified group, if the second group to win the support and resistance will break, when the point of support and resistance impenetrable, it will form a point resistance support and new, that impregnable resistance point will be a new point of support, and prices move in the new range, while the new resistance point will be formed, to know the price will penetrate the point of support and resistance, have to learn some technical analysis instrument, especially the type of oscillators, to know the point of overbought and oversold point, should also be taken into account the fundamental situation that occurred, most of the points critical to know whether or translucent support and resistance, because it has experienced for many years in trading
The simplest way to determine the extent of support and resistance is, by the method of simple line or trend lines, without the use of formulas and calculations, the trend lines in the chart is a straight line, which connects sequentially from the top price or the lowest price, and this used to identify support and resistance, to limit resistance, just look straight at the highest price in a period, this line will give an indication for price prediction, as well as the limit of support, just look straight line at the limits of the lowest in a certain period
PIVOT POINTS
Pivot points are how the calculations to determine areas of support and resistance, pivot points are not classified as indicator, but is still regarded as a branch of technical analysis, because both make decisions based on projections of the past, consider the following formula:
resistance 1 = (2x pivot points) - Low
resistance pivot points 2 = + (high - low)
Support 1 = (2x pivot points) - high
Support 2 = Pivot points - (high - low)
accuracy of key pivot points are at the point of taking the high (H), low (L), close (C), and open (O) in accordance with the history that occurred, many traders who have modified their pivot, so they no longer use the H, L , C, and O on a candle before, but bias just some of the previous candle is condensed into a single, traders modify the formula so that the pivot point in accordance with their way of trading, as far as it pivots used quite extensively in trading every day, accuracy is also pretty, to facilitate , use Excel to determine the point of pivot points, support and resistance simply enter the H, L, C, and O only, pivot quite powerful when the price is not influenced by news or fundamental issue is strong, when news emerged of price volatility becomes routine, but more likely move because of irregular supply demand, pivot becomes less effective so it would be better to switch to use the calculation of support and resistance psychologically, not technically as pivot points
Each trend will end if the increase will reach its peak, and then stopped rising and continues to decrease, and vice versa when the price goes down, there will be a point where the decline stopped and the prices go up, the point where the rising and falling prices stop is called, the point support and resistance,
Support = point trend change from down to up trend
Resistance = turning point of the rising trend to trend down
Point of support and resistance vital in FOREX trading, without knowing the point, can only follow the trend, without knowing that the actual age of the trend would not be much longer, will be replaced with the opposite trend or way-side situation, to determine the point of support and resistance is, with know the lowest and highest price movements in previous days, at a certain period for example one month, the point of support and resistance actually is, a reflection of the psychological point that is recognized by market participants simultaneously, because price movements are basically determined by the laws of demand and supply, when demand rises , while supply remains, then the currency will strengthen and conversely, when supply and demand much fixed, then the currency will weaken because the number of outstanding supply market, such as pricing in the state of an uptrend, when prices began creeping up, then traders will follow the trend is happening and take a buy position, this resulted in rising demand, so prices continue to boost up, but the other side of the majority of traders are also anticipating the end of the trend, by taking a specific resistance point, at that point they no longer have to buy the action, otherwise they will do profit taking, by selling the currency that they had bought earlier, if everyone does so it automatically reduced demand, and an increase in the currency began to lose strength, consequently, prices will again move down, so the key to trading is much easier how to determine the point of support and resistance the same point of support and collectively market resistance
Resistance point of support and can be penetrated by the price movement, in which buyers and sellers win less, then the price will continue to rise despite already reached the point resistance, in the circumstances, the actual point of support and resistance vote on the markets is not uniform / equal, and divided into several groups, one group estimates that prices will not rise until a certain level, while another group believes the price could go up past the first level of the specified group, if the second group to win the support and resistance will break, when the point of support and resistance impenetrable, it will form a point resistance support and new, that impregnable resistance point will be a new point of support, and prices move in the new range, while the new resistance point will be formed, to know the price will penetrate the point of support and resistance, have to learn some technical analysis instrument, especially the type of oscillators, to know the point of overbought and oversold point, should also be taken into account the fundamental situation that occurred, most of the points critical to know whether or translucent support and resistance, because it has experienced for many years in trading
The simplest way to determine the extent of support and resistance is, by the method of simple line or trend lines, without the use of formulas and calculations, the trend lines in the chart is a straight line, which connects sequentially from the top price or the lowest price, and this used to identify support and resistance, to limit resistance, just look straight at the highest price in a period, this line will give an indication for price prediction, as well as the limit of support, just look straight line at the limits of the lowest in a certain period
PIVOT POINTS
Pivot points are how the calculations to determine areas of support and resistance, pivot points are not classified as indicator, but is still regarded as a branch of technical analysis, because both make decisions based on projections of the past, consider the following formula:
resistance 1 = (2x pivot points) - Low
resistance pivot points 2 = + (high - low)
Support 1 = (2x pivot points) - high
Support 2 = Pivot points - (high - low)
accuracy of key pivot points are at the point of taking the high (H), low (L), close (C), and open (O) in accordance with the history that occurred, many traders who have modified their pivot, so they no longer use the H, L , C, and O on a candle before, but bias just some of the previous candle is condensed into a single, traders modify the formula so that the pivot point in accordance with their way of trading, as far as it pivots used quite extensively in trading every day, accuracy is also pretty, to facilitate , use Excel to determine the point of pivot points, support and resistance simply enter the H, L, C, and O only, pivot quite powerful when the price is not influenced by news or fundamental issue is strong, when news emerged of price volatility becomes routine, but more likely move because of irregular supply demand, pivot becomes less effective so it would be better to switch to use the calculation of support and resistance psychologically, not technically as pivot points
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