Forex 101: Understanding Charts
In this week’s installment of PremiereTrade’s Forex 101 series we explore the basic terminology involved in charting. If you missed the previous segments in the series you can find them here: Forex 101 , Forex 101 Pt. 2
Learning Objectives
- Support
- Resistance
- Trends
- Channels
Support
- The price level which, historically, an asset has had difficulty falling below
- Acts as a “floor”
Resistance
- The price level which, historically, an asset has had difficulty rising above
- Acts as a “ceiling”
Trends
- Demonstrates the direction that the price is moving
- Can be an “Uptrend” or “Downtrend”
Channels
- Neither an uptrend or a downtrend
- Pair starts to trade in a relatively narrow range between support and resistance
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