eTrader FX: Read Support and Resistance Chart Patterns: Part 1 of 2

Level - a critical level

Simply stated, Pivot can be considered as the level psychological / determinant of market direction where, Is resistant strong resistance above to restrain the rate of reinforcement pair, Support is a potentially lower resistance to restrain the rate of weakening of a pair.

If unable to move the dominant above the pivot point can be predicted that the trend began to climb, the goal is R1. Conversely, if the dominant moving under the pivot point then the market will tend to fall toward S1.

Well this time that R2/S2 into play, we can monitor what amounted to penetrate the high level of market power R2/S2, if great momentum, then R2/S2 can be translucent, but if not break it will be able in turn to the Pivot Level.

Cuman the standard range of moving between R1 - S1, if there is a great news or the speculators are playing area at the level of R1 - R3 / S1 - S3. Especially if the pair became very volatile (Increase drop leads nowhere) is usually played in R2 - S2.

Ok, now I we discussed how to get value - the value. This time I use the tool Meta Trader help Neuimex (Tool Analysis I), why did I choose this? because they do not separate Demo and Live Trading, so that what we practice in the demo then that's what happened at Live Trading, and the main Server: Ok!

Back to the chart, if already signed, please open GBPUSD chart (my idol Pair

) Then press F2 to see price history, select FOREX -> GBPUSD (pair who would be calculated) -> D1 (daily).

Now, we take a case on June 5, 2006 there is written:

Open: 1.8821 -> Opening Price on that day.

High: 1.8880 -> Highest Price for that day.

Low: 1.8716 -> Lowest Price on that day.

Close: 1.8721 -> Closing Price on that day.

Volume: 44 641 -> Volume of transactions that occur on this broker pair GBPUSD for that day. Ok, after the data we get, so now we discuss the formula / calculations to determine the level of PRS, do

this on the next day to calculate the level - critical for today's level.

Pivot = (High + Low + Close) / 3

R1 = (2 * Pivot) - Low

S1 = (2 * Pivot) - High

R2 = Pivot + (High - Low)

S2 = Pivot - (High - Low)

R3 = (2 * Pivot) + (High - (2 * Low))

S3 = (2 * Pivot) - ((2 * High) - Low)

Well, level - the level of PRS to date June 6, 2006 has been formed, we now have a level - the level which should control at the moment we Postion Open (OP).

Please download indicator in the menu download, lines TSB will appear dg itself, so not need difiicult manual calculated, and most importantly we can learn to see history day2 previous dg