Identifying Strong Rejections
Occasionally the market will touch a price that generates a tremendous amount of interest. When this occurs, the market is often rejected strongly 7JdlS M SJd03 K gt t 3d llifl S Jul Jiifl IJjQJfl l rOO 1Q M 03JX OJJilrlH ED kJ L O L3iJfl5 O FIGURE 3.14 Support and Resistance Zones MetaTrader, 2001-2008 MetaQuotes Software Corp. 7JdlS M SJd03 K gt t 3d llifl S Jul Jiifl IJjQJfl l rOO 1Q M 03JX OJJilrlH ED kJ L O L3iJfl5 O FIGURE 3.14 Support and Resistance Zones MetaTrader, 2001-2008 MetaQuotes...
Using Key Zones
The challenge many traders face is determining which horizontal support and resistance levels have the highest probability of holding price versus which will fail. Although trend and price action have a lot of influence on selecting the right support or resistance level, there are some shortcuts you can use to quicken the process. Key support and resistance zones can be used to increase the probability price will respect the price level and offer you a good trade. Key zones are created by...
Measuring Fundamental Strength
Supply and demand for a currency can be affected by the fundamental strength or weakness of the country it represents. Economic and political factors combine to encourage participants to buy or sell a given currency, which affects overall supply and demand. Since currencies are paired together, it is ideal to determine which country in the currency pair is stronger than the other and buy that currency while selling the other. Knowing which currencies are stronger than others requires a...
Acknowledgments
1 would like to thank the good people at John Wiley amp Sons who made this book a reality. I'd like to acknowledge Kevin Commins, who listened and believed in my idea for a book focused on traders who also work full-time. Thank you for listening to my pitch, understanding my vision, and creating a book project from it. Meg Freeborn deserves an enormous thank-you for putting up with me over the course of this project. Meg patiently waited for material as I rewrote the book and changed the...