Weekly Technical Levels:
Tip (s):
R3 and S3 are good indication of the maximum range for extremely volatile days but can be exceeded occasionally.
Pivot lines work well on sideways markets, as prices most likely range between the R1 and S1 line.
In a strong trend, price will be lower than a pivot point line and will keep going.
If there is significant news to influence on the market, price may go straight through R1 or S1 and reach even R2 & R3 or S2 & S3.
Time Frame: H1.
Drag your Fibonacci retracement levels from the lower to the higher levels of the last week from the 20th of February to the 24th of February, 2012 in order to determine the low and high price.
Average = (Higher - Lower) / 2
Average = 1.3329
- Range was: 313 pips.
- The value of 50% Fibonacci retracement levels is: 1.3329.
- 1.37 a strong resistance will be formed.
- 1.2830 a strong support will be formed.
- Volatility is 417.2 so the market called for a high volatile level.
- It should be noted that the price is still trapped between 1.30 and 1.35.
Observation (s):
- If the strength of the trend for pair is an uptrend, then the strength of the currency is as follows: EUR is an uptrend and USD is a downtrend.
- Most of traders use the Fibonacci retracement to determine accurate psychological level of support and resistance.
- Volatility Formulas: Variation = Average * (Higher - Lower).
