6 ZONE FOR FOREX
Earlier there was talk about what is more correct than levels, and zones. This concept exactly corresponds to what is "going on" in the real market.
Forex zone is one of the strongest indicators on the foreign exchange market. Traders often play "from history", in terms of strong support and resistance.
Every trader coming to the foreign exchange market Forex, begins acquaintance with the market with supports and resistances. From the correct identification of the zone depends the success of the open transaction. There are many forex strategies, built on the principle of breakdown of important technical zones or rebound from them.
Meanwhile, not all of them "taste the same" and basically differ in their strength. Zones of support and resistance can be conditionally divided into 6 types, which we arrange as their strength increases.
AIR ZONES
The air support or resistance zone received its name due to the fact that it is being formed "on an equal footing". It is formed when the bodies or tails of a minimum of four candles bounce off the same price. It is very important that the air zone is not broken by at least one candle, for in that case it ceases to be such a candle.
ROUND AIR ZONE
This zone is the same as the previous one, only formed near the round zone (1.0000, 1.2000, 1.7500, etc.)
Round support and resistance have their own power, which increases due to the formation of an air zone.
HISTORICAL SUPPORT AND RESISTANCE
These are zones that can easily be found on the older timeframes by looking at the history of the currency pair. From time to time the price fights off from them in one direction, as, as forex traders say, "remembers" it. The historical zones have sufficient strength and informativeness.
ROUND HISTORICAL ZONE
The same historical zone, which is located at a round price, which enhances its effect.
MIRROR SUPPORT AND RESISTANCE
Mirror support and resistance zones are formed when the price bounces from them, overcomes, and then bounces in the other direction - that is, the zones that turn from support to resistance and vice versa.
ROUND MIRROR ZONE
A round mirror zone is the previous zone formed at a round price. Is the strongest forex zone.
ADDITIONAL GRADING FOREX ZONES
In addition, it is possible to identify floating and fixed zones. A floating zone is a zone that the price constantly "cuts". Fixed - this is the zone below which or above which price prorogovki arise.
Also, when classifying and determining the strength of forex zones, it is necessary to take into account that their coincidence with zones constructed by another method, for example, Fibonacci, adds "weights" to them.
If your trading strategy uses support and resistance zones, consider the form of evil and its strength - then the probability of its working out will be very high, and you, of course, will get your profit.