Weekly Technical Levels:
Tip (s):
•R3 and S3 are regarded as clear indicators of the maximum range of extreme volatility, though it is possible to pass them through.
•Pivot lines work well on the sideways markets, as the prices are most likely to be located between the R1 and S1 lines.
•Within a strong trend the price is expected to be lower than the pivot point line and will continue the movement.
•In case of the breaking news release which may affect the market, the price is likely to go straight through R1 or S1 and even reach R2 & R3 or S2 & S3.
Observation (s):
- If the trend is of an upside character, then the strength of the currency will be defined as following: EUR is an uptrend and USD is a downtrend.
- Fibonacci retracement uses to determine accurate psychology level of support and resistance, and playing according to in this kind of period.
- Fibonacci in a range trader (it is looks like the trend is trapping and going up or down, if you sell or buy for a long term in this period you'll go sure for losing your profit.
- Stop Loss should NEVER exceed your maximum exposure amounts.
- Usually the market has a high volatile, if the last day had a huge volatility.
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.
Mourad El Keddani is taking part in the "Analyst of the Year" award organized by MT5.com portal. If you like his article, please vote for him.
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