Learn How to Buy and Sell Currency Pairs
If you are new to Forex Trading and aren’t fully familiar with the fundamentals of Forex, then it would be a good idea to study at least the basics before jumping into it. Once you have a basic knowledge of the basic concepts that govern Forex trading, the next step is to study the Forex charts and currency pairs that go along with them. In this article, I will explain to you how to buy Forex Support and Resistance levels and what can happen if you do not act on these occasions.
If you want to understand the Forex market, then you need to learn the basics before jumping into the market. I am going to assume you already know the basics about Forex trading but I will briefly go over Forex charts and currency pairs before explaining the concepts about support and resistance.
When looking at currency pairs, you should know that each currency pair has two channels – one is called the mid-channel and the other is called the high-channel. If you find a certain currency pair trending and it is above the high-channel, then you are going to be in a winning position.
The danger to trade a currency pair that is on the high-channel is that you will have a weak support and resistance region on either side of the channel. If you don’t have a strong winning trade on either side of the channel, then you are looking at a losing trade.
When you buy Forex at support and resistance, there is a tendency to buy a currency pair that is above its resistance level. If you are not smart enough to predict this, then your profits will go down dramatically and you will find yourself unable to recover from your mistakes.
If you don’t want to go through all that, then look for the Forex Support and Resistance indicators on your charts. These indicators will tell you if you are going to profit or lose when you buy currency at those levels.
As I mentioned before, the next danger with trading currency pairs is that you may find that the support and resistance levels on either side of the channel are not really support and resistance, but rather areas where traders have already made their losses on previous trades. When you buy currency at these levels, you are in for a very bad surprise.
If you find that the chart shows no support or resistance at high-channel levels, then you are not going to get any profit out of the currency pair when you buy it. It would be better if you buy the currency pair at the low- or mid-channel instead of at high-channel levels because the prices will not be overbought at high-channel levels and they will be oversold at mid-channel levels.
Of course, the currency pair that has the highest resistance is going to be the one that makes you the most money when you trade. You will see that the currency pair that has been performing well for long periods of time will be holding a resistance level and is not going to give up anytime soon.
So now that you know how to buy Forex at support and resistance levels, you need to make sure that you don’t let the wrong currency pair make you lose money. Look at the chart and see which currency pair has the greatest probability of achieving a sustained uptrend.
Once you choose a currency pair, then go ahead and buy the currency pair and start trading the Forex. Once you see an uptrend, then stop when you see that the currency pair is going to break the resistance level and start a new uptrend.
If you want to be smart when you trade Forex, then you need to learn how to buy and sell currency pairs. Once you have learned these skills, then you will be able to make money and be in the driver’seat when the market is moving in the direction you want it to go.