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SOURCE Forex Peace Army
NORTH PORT, Fla., Oct. 1, 2013 /PRNewswire/ -- According to Forex Peace Army's President Dmitri Chavkerov, support and resistance price points are by far some of the most reliable and most fundamental factors that one can use to profit in almost any electronic speculative market.
"Even when trading the news, these points are crucially important," says Dmitri Chavkerov.
Support and resistance is a form of technical analysis that works on the concept that the price movements of a particular security will stop at some point and reverse at specific price levels that were determined earlier. When the support or resistance levels hit, three things can happen to the market: it could change direction, retrace, or stall. With the help of information derived from these levels, traders can adapt to a new strategy or trading plan. It helps derive a broader view on the market and determine the course of action certain positions may take in the future. The support and resistance points are provided by way of a chart.
Many new traders who are at the beginner's level go with the popular belief that support and resistance is a highly technical and complex area. However, experienced traders take a favorable stand for these crucial factors and consider it to be a true indicator of the highly volatile market conditions.
Forex Peace Army is a distinguished website, which has been rendering traders exceptional guidance in understanding various foreign exchange trading techniques and strategies for the past 8 years. Forex Peace Army is well-known for its initiatives for bringing about awareness regarding forex trading.
Dmitri Chavkerov advises traders to trust support and resistance as one increased probability factor to bank on. The belief that support and resistance is too complex to handle is a myth. It may seem complex superficially but once the basic idea is understood, it gets easy to analyze and predict the price points. It is a vital strategy that can be mastered with time and practice.
"Support and resistance points have nothing to do with any technical indicator, but they are enough to make a small fortune on the individual stocks," says Dmitri Chavkerov.
Support and resistance is often an overlooked factor in foreign currencies trading and traders give ample importance to certain other technical indicators. In fact, the focus needs to be on these points as they are capable of directing traders towards the right course of action rather than certain technical indicators that are misleading in nature. Traders should understand that simply relying upon technical indicators is not going to be useful and they should be proactive in developing new trading strategies from time to time.
"The less focused a person becomes on these points by being more focused on some technical indicators, the less successful he will become, because he is cluttering his perspective with less important things," says Dmitri Chavkerov CEO of Forex Peace Army.
Dmitri Chavkerov shares the wisdom he gained from a popular trader. The old man was the most popular commodities trader in his firm and he often told people that his secret is too simple and a well known one, which is to focus on support, resistance and proper money management.
These three are the most essential aspects that help achieve success in FX trading. However, people should understand that going by support and resistance alone will not bring success as there are many other factors that impact trading. It should be looked upon only as a contributing factor, since forex is an erratic and sensitive space which provides no room for accurate market estimation.
"My personal experience suggests that if you use this simple advice on money management, support and resistance over trading individual stocks, you will certainly become overall profitable. After all, this is what that stock service, which I initially used with Scottrade, was selling me. They were selling simple support and resistance points, which are obvious by looking at the charts. But if you use support and resistance on forex, your success will still be highly questionable. The reason for it is because forex is a highly unpredictable market with highly interrelated and unfocused liquidity, much of which is not even speculative," says Dmitri Chavkerov, CEO of Forex Peace Army.
According to Dmitri Chavkerov, traders need to get their fundamentals strong on areas like money management, support and resistance and then move towards real-time trading practices in order to increase their chances of gaining profit in forex trading.
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