Inclined forex levels

Companies that conduct training very often talk about inclined levels. In this article we will check whether they work in real trading.

 

It is safe to say that if you put 50 people together and say: “hold knee levels”; they will do it all differently.

 

 

Therefore, we can say that it is best to hold exactly horizontal levels.

 

 

The structure of the stock exchange glass

Let’s try to figure out how it looks and prove why the limits work?

 

There is a certain line that divides the glass into 2 parts and the second line, which also divides the glass into two parts.

The first line divides into right and left, the second, respectively, at the top of them. In the stock exchange placed the application.

Of course, the “Sell limit” order is placed on top, there is no stock exchange itself. But in Forex there are very large volumes, here, in principle, a glass is not needed.

 

 

Below are placed – “Buy limit”

Also, there is a volume in front of each limit.

 

 

If you understand the principles of stock exchange, you understand how graphics are built.

Having opened a new order, let’s assume on “Buy”. What is technically happening on the market? Why is the schedule moving? Why is this schedule jumping constantly?

When you click the Buy by Market button, what happens? There is a buyout at the nearest limit. If you press “Buy” 1 contract opens an order at a price of 2.35, but the market has not moved.

 

 

But if you open a trade in one hundred lots, then two lots of the lower limit are bought up, and the market moves and purchases one lot of the next, and then the missing volume is bought. The market stops at this point- 2.37. That is, one purchase can move the market.

If you press “Sell”, then the opposite movement occurs, at the moment the lower limits are bought up. This is how the market moves.

Why does the market enter the corridor?

 

 

The large bids that participants place are slowing down the market, the market can not break through them and go further. These are the images of corridors on the market.

So why do you need to hold horizontal levels?

Horizontal levels are the foundation. Markets react primarily to levels, because they are visible to everyone, everyone understands them and everyone sees them – this is the basis of trading!

Open an account with Forex broker Weltrade and start trading and earning now