Excerpt from: Forex Training
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| June 25, 2009 | | Watch out for volatility on the FX market | Technical forex traders are always looking at support and resistance in order to help them figure out what the best possible move might be for a particular currency pair. Support and resistance can help forex traders determine when to enter and when to exit a trade.
It is important to note, though, that sometimes the process is not always so cut and dry. Due to the volatility of the FX market, it is possible that support can become resistance. If a currency pair falls below its line of support too often in a short period of time, all of sudden you have resistance instead of support. You should watch carefully for this, since it happens frequently and changes the equation.
| Topic Tags: forex, forex traders, FX, FX market, resistance, support, volatility | |
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