The way we are using Support and Resistance is different. We look at an area that has either Support or Resistance and that has been broken through. This means that this price has a lot of significance. The price just keeps getting rejected there. People (large players) are interested in this price.
- How do you draw the line exactly? If you want to be using Support and Resistance right you have to realize it's not an exact line. It's an area that you have to see and draw out
- How do you draw it on a big spike? Just imagine how this looks on a higher time frame. It looks just like a big tail or wick. This is also called a fake out.
- "People jump in, they participate, they don't anticipate." These are the people that are going to lose their money in the retracement, becausse they think it will drop or rise forever. We (the profitable traders) want to see to where it will retrace and how we can take advantage of that
- How much will it retrace? It matters more HOW it retraces. We want to read the story of the retracement in as much detail as possible. This will tell us when it is ready to make that big move again
- If the price is in a sideways movement and the trend is broken, it can get go either up or down right? This is what we at Forex Watchers call the Money Spot. Because few people can read correctly where the market will go, many people will lose money from this spot. If you can read this correctly and get on your are trading with the big players. These are the big moves.
#UrbanForex - Be conscious of your trading!
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Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
USD/JPY rallies to near 144.00 as BoJ delivers diplomatic policy guidance
USD/JPY surges above 144.00 as BoJ refrains from committing pre-defined rate hikes in this year. Japan’s National CPI rose to 3% in August. Traders see the Fed cutting interest rates further by 75 bps to 4.00%-4.25%.
Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Pepe price forecast: Eyes for 30% rally
Pepe’s price broke and closed above the descending trendline on Thursday, eyeing for a rally. On-chain data hints at a bullish move as PEPE’s dormant wallets are active, and the long-to-short ratio is above one.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
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