Forex high and low strategy. The forex high and low strategy is based on the concept that if the price of a currency pair moves past the previous day's high or low, then the market will continue in that direction of breakout.
The forex high and low strategy is based on the concept that if the price of a currency pair moves past the previous day’s high or low, then the market will continue in that direction of breakout. Note that with this strategy, the time period of consideration is one day. Therefore, this strategy can do well for day traders who close out all their positions in the forex market before the end of the day.
Usually, in a forex chart, there is a point that shows the highest the value of a currency pair has ever reached considering a period of time, and there is also a point that shows the lowest value of the currency within the same period of time. These are known as the highest high and the lowest low, or the resistance and support level. Given to the volatile nature of the market, it is possible for the price of a currency pair to move above or below the previous day’s resistance and support levels. When this happens, there is said to be a breakout in the trade.
The general idea of the forex high and low strategy is that the kind of breakout explained above happen almost on a daily basis. If this is the case, it will be wise to pattern a strategy that will take advantage of this frequent occurrence; thus the forex high and low strategy.
The forex high and low strategy is based on the concept that if the price of a currency pair moves past the previous day’s high or low, then the market will continue in that direction of breakout. Note that with this strategy, the time period of consideration is one day. Therefore, this strategy can do well for day traders who close out all their positions in the forex market before the end of the day.
Usually, in a forex chart, there is a point that shows the highest the value of a currency pair has ever reached considering a period of time, and there is also a point that shows the lowest value of the currency within the same period of time. These are known as the highest high and the lowest low, or the resistance and support level. Given to the volatile nature of the market, it is possible for the price of a currency pair to move above or below the previous day’s resistance and support levels. When this happens, there is said to be a breakout in the trade.
The general idea of the forex high and low strategy is that the kind of breakout explained above happen almost on a daily basis. If this is the case, it will be wise to pattern a strategy that will take advantage of this frequent occurrence; thus the forex high and low strategy.