Forex encyclopedia

Analyzing any Forex currency pair, every trader accounts for such values, which go through consolidation of its price not just once. At this point, it does not matter which forecast method is adhered by a trader: those values should be considered by all of them. Support line represent force line to which the price moved top down and back not once. In the opposite case when the price several times approached a certain point down top and bounced from it, it is known as resistance line.

In general, the candlestick charting technique originated in Japan in the XIII century. Its founder was the Japanese rice dealer Munehisa Homma from Osaka. He traded on the rice exchange and sought to understand the psychology of sellers and buyers. Thanks to the herald alert system, he promptly received information about the slightest price changes, and, accordingly, responded as quickly as possible. This contributed to the fact that he was able to achieve unprecedented results and make a profit on a hundred transactions in a row. Munehisa was awarded the title of samurai for his outstanding services and received the right to be an adviser to the emperor. You can see his portrait in this picture.