Forex psychological level trading

Forex psychological level trading

Posted: Dvoe Date: 16.06.2017

Oil Crumbles, Cable Reverses and the Dollar Continues with Bullish Structure. Bull Flag Break Opens Door for Continuation.

Gold, USD Strong Inverse Correlation and in Confluence. Have you ever been in a trade that was working out really well, and as you watched comfortably with a long position as prices surge higher, you see price action beginning to stall? And it may stall for a little while; maybe a few minutes, or maybe a few hours but eventually it becomes clear: The trend you were in is trending no more. What happens after that is really up to the market.

If the reason for that trend to initially take place still exists, well then it may continue trending.

This is support and resistance ; and after a currency pair goes on a prolonged trend, it eventually reaches a point where no new buyers want to buy, and sellers begin to look at the new, higher prices as an opportunity to realize some of their floating profits.

This is where a top develops, and this is where price action denominates market dynamics.

There are numerous ways to identify support and resistance in markets. As computers became more popular, so did the methods that traders used to identify support and resistance. Fibonacci , fractals , and off-beat indicators like Parabolic SAR became popular as traders looked for new and more inventive ways to trade.

And the reason is that, as a human being, we value simplicity. This becomes relevant because traders are human, and just like human beings do in other facets of life; traders attempt to simplify by rounding to the nearest, rounded whole number.

forex psychological level trading

When a currency pair like EURUSD approaches a level like 1. But if EUR USD breaks back below 1. After all, if EUR USD was trading at 1. But at the very least, it could cause trends to stall as the market attempts to digest these new prices.

Trading Psychological Whole Numbers - nocuwahojopyx.web.fc2.com

These are the major levels and they take place in pip increments in the major currency pairs. The levels identified are 1. These prices are less-round, but they still come up quite often as support or resistance in markets.

Notice how numerous reversals and swings take place when one of these levels gets hit. If traders could sit back and wait for reversals anytime a new major level comes into-play life and trading would be just too easy.

The Minor Psychological Levels on GBP USD pip increments. James is available on Twitter JStanleyFX.

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Trading Psychological Whole Numbers

Market News Headlines getFormatDate 'Wed Jun 21 Technical Analysis Headlines getFormatDate 'Wed Jun 21 Bull Flag Break Opens Door for Continuation getFormatDate 'Wed Jun 21 Education Beginner Intermediate Advanced Expert Free Trading Guides. Click here to dismiss.

forex psychological level trading

Get Your Free Trading Guides With your broad range of free expert guides, you'll explore: News getFormatDate 'Wed Jun 21 News getFormatDate 'Tue Jun 20 The Hidden Patterns of Support and Resistance in the Forex Market getFormatDate 'Wed May 14 There are numerous ways of identifying support and resistance, but many traders miss the values right in front of them.

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