Quote:
Originally Posted by Archie 2000
I’ve read the book of Murphy, John-Technical Analysis of the Financial Markets. It gave me basis for finding levels, and I’ve read in the forums that the level that currency bounced twice already considered to be a strong level.
 [ |
I read this book. But it contains no clear criteria for determining levels of support and resistance.
Let’s take few quotations from the book and begin their review.
“Volume is another way to measure the value of support or resistance. “
I have a question. What does “volume” mean on the Forex market - how the volume can be created when you have sale and buy at the same time. This market is not the Commodity market.
That means more volume gives more likely condition to break the level of support or resistance.
If the volume is growing rapidly we have break situation not bounce.
“The significance of the support or resistance level, its distance in time from the current moment”
That means the more the level of resistance or support is from the current price so it is stronger?
Yes this is the most fun statement I heard.