Pita Magazine

  How to Trade Support and Resistance in the Forex Market r 0 One of the most crucial skills in Forex Trading is the process of finding support and resistance levels. This is so because knowing the basics of support and resistance would improve upon any trading method. Therefore, recognizing key levels is crucial to the   success of any trader .  In this article I will teach you how to identify these key levels and how to benefit from them. But firs What is Support and Resistance Support and resistance are specific levels or zones on the trading chart, where the price of a Forex pair (or equity, commodity, etc.) is likely to find opposition. The reason for this is that these are psychological levels showing the different attitudes of the market players. When price meets such levels it could lead to a bounce in the opposite  direction of the trend  or to consolidations (horizontal movement of the price). Also, the level could be broken and the price could make a ...

  How is Fibonacci Relevant to Financial Markets? The  Fibonacci sequence  is relevant to financial markets because it is used to  identify potential levels of support and resistance  for a financial asset’s price. The sequence is derived from adding the previous two numbers to get the next number, starting from 0 and 1. In  technical analysis , traders and investors  use Fibonacci retracements  to identify levels at which an asset’s price may experience support or resistance after a price move. These levels are determined by calculating the percentage retracement of the price move and finding the corresponding level in the Fibonacci sequence. The most commonly used levels are 23.6%, 38.2%, 50%, 61.8% and 100%. These levels are considered significant because they often correspond to key psychological levels in trading and can serve as potential areas for traders to enter or exit positions. Fibonacci Retracement and Extension Fibonacci re...