Weekly Technical Levels:
Tip (s):
- • R3 and S3 are considered to be 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 continue the movement.
• If the breaking news are released they 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: the EUR is an uptrend and the USD is a downtrend.
• Fibonacci retracement is used to determine accurate psychology level of support and resistance. The period of time should be taken into account.
• Fibonacci is in a range trader: it looks like the trend is trapping and going up or down, if you sell or buy for a long term in this period, sure you'll lose your profit.
• Stop Loss should NEVER exceed your maximum exposure amounts.
• As a rule, 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.
