After a significant downward move the pair reaches the braking zone (yellow on the graph) and generates movement around the support level in a form of a rising trend line.
The RSI indicator, which examines the determination of buyers against sellers, generates a new “rising low” indicating that the conditions for an attempt to breach the yellow range are here (there is no way of knowing whether this will happen or not, and it is better not to guess)
It is important to remember that very few cases where a downward move stopped it moves upwards immediately, usually the movement stops, produces a pattern of double bottom, and then tries to reverse the trend. To illustrate this, we can use an example that we all know from the car industry. When we travel on a highway at 80 km / h we cannot start driving in reverse without stopping a complete stop and integrating the appropriate gear.
In the Forex market, this move takes place in a similar way by internalizing the traders for a certain support and integrating a new economic assessment or figure that supports the new process.
The RSI indicator, which examines the determination of buyers against sellers, generates a new “rising low” indicating that the conditions for an attempt to breach the yellow range are here (there is no way of knowing whether this will happen or not, and it is better not to guess)
It is important to remember that very few cases where a downward move stopped it moves upwards immediately, usually the movement stops, produces a pattern of double bottom, and then tries to reverse the trend. To illustrate this, we can use an example that we all know from the car industry. When we travel on a highway at 80 km / h we cannot start driving in reverse without stopping a complete stop and integrating the appropriate gear.
In the Forex market, this move takes place in a similar way by internalizing the traders for a certain support and integrating a new economic assessment or figure that supports the new process.