Forex encyclopedia

Technical levels are one of the crucial elements of technical analysis on the Forex market. Technical levels represent a certain value approaching which the price faces resistance in further movement. On the chart it is pictured as zone (level), where price went and bounced off later, repeated its movement to the level again and without being able to pass it bounced off. Such approaching and returns can take place on a repeated basis and the more efforts are made, the stronger price level we have.

The biggest part of understanding the market in the same light as I do is understanding when the market begins to trade higher or lower. The objective, somewhat contrary to everything you've seen in the past, is that I look to sell when the market is moving up and I look to buy when the market is moving down. The trick is that when the market is moving, whether it be from the daily movement or the retracements into those daily movements it will always change direction. It's the change of direction that will get you in long at the bottom of a movement and short from the top of a movement, that does not mean we will be trying to pick tops or bottoms in the movements but rather we will look for selling opportunities when the market is moving up and the reverse for buying entries when the market is moving down. We do this by identifying when the market begins to trade lower after it's been moving up and to trade higher after market has been moving down