Lesson 3 – Technical Analysis 2

Inviato il 9 November 2008 da Forex Staff

Types of Markets There are basically 2 types of markets depending on their behaviour. Each one should have it's own strategy: Range Bound Market Trending Market Two Basic Concepts There are 2 basic concepts that can be applied in any of the above mentioned markets. Support and Resistance Support can be defined as the “floor” or bottom level through which the currency pair has trouble falling below. Resistance, is the opposite: the "ceiling" or upper boundary through which a currency pair has trouble breaking above. So here are shown Support and Resistance levels on Rangebound and Trending Market: Range Bound Market So the strategy that should be applied to a rangebound ...