Weekly Technical Levels:
Tip (s):
• R3 and S3 are considered to be clear indicators of the maximum range of extreme volatility, although it is possible to pass them through.
• Pivot lines work well on the sideways markets as prices will probably 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 is going to continue its movement.
• If the news released 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: NZD is an uptrend and USD is a downtrend.
- Fibonacci retracement is used to determine an accurate psychology level of support and resistance, and playing according to this kind of period.
- Fibonacci is 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.
