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Now we are going to get into a form of support and resistance that is so over looked but is so ‘powerful’ it will blow your mind! To see just how important this really is when making an entry trading decision, or an exit decision?
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Because whole numbers are so extremely effective I have decided to share this with you. It’s only recently that I have took a serious look at this… In the past like 3 years ago some trader was going on about it and I just blew it off!
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But now I can see the importance of whole numbers and how Forex traders alike buy and sell off of them. Just like the two other forms of support and resistance I just talked about. You see, when price comes UP to a whole number like 1.5700 for example… Traders see this as a major resistance level, and either look to take profits at this level. Or look to sell at this level.
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When price is coming down to a whole number like 1.5300 for example… Forex traders see this as a strong support level and buy off of it. So can you guess what is even stronger than these whole numbers?
Whole Numbers Like 1.5000 or 2.000 Are Very Strong Support & Resistance Price Points.
When price comes down or up to a whole number like 1.5000 or 2.000 for example, they are considered VERY STRONG turning points in the market.
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Not just whole numbers are extreme buy and sell points. But in-between numbers have some merit, too. Meaning, 1.5150 is also considered a point in which Forex traders look to buy when price is coming down to this price. Or sell when price is coming up to this price.
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I like to call the whole numbers like 1.5400 ‘majors’ and the in-between numbers 1.5450 ‘minors.’ Because the whole numbers are easier to remember than the in-between numbers. Also it’s a lot easier to remember a price to buy or sell at 1.2450 as apposed to 1.2434. You see what I mean?
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And, if you take a serious look at these whole numbers you will see price come up or down to them and stall some times. And price will hang around there for hours sometimes until Forex traders decide to break thru it. Or buy or sell off of that major/minor price level.
“True Support & Resistance Forex Traders” Buy off of Support and Sell off of Resistance.
Another thing to remember is “True Support & Resistance Forex Traders” Buy off of support and Sell off of resistance. So the 3 different ways I just showed you how to find true support and resistance. Is 3 of the sure fire ways to find it and to use it to your advantage. So if that you have a entry setup to buy or sell and major support or resistance is near by – then it is best to not do the trade setup.
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Let’s now take a look at a few chart examples to show you exactly what I mean. Next we will cover exits of your trade positions…I have few different ways to show you how to get the most pips possible out of your Forex trading.
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As you can see it doesn’t always come exactly to a whole number and bounce off of it every time? But more often than not time and time again it sure does act as a major support and resistance point of entry or exit.
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And 1 more thing, as you can see when price is coming up to a whole number, you don’t want to be buying into 1.5300 and if price is dropping down to a whole number. You don’t want to be selling into 1.5100? Please try to think in an opposite way my friends?
