0 Support and Resistance Levels

Support and Resistance is one of the most widely used concepts in trading. Strangely enough, everyone seems to have their own idea on how you should measure support and resistance.

Let's take a look at the basics first. 

Look at the diagram above. As you can see, this zigzag pattern is making its way up (bull market). When the market moves up and then pulls back, the highest point reached before it pulled back is now resistance.

As the market continues up again, the lowest point reached before it started back is now support. In this way resistance and support are continually formed as the market oscillates over time. The reverse is true for the downtrend.

Notice how the shadows of the candles tested the 1.4700 support level. At those times it seemed like the market was "breaking" support. In hindsight we can see that the market was merely testing that level.

So how do we truly know if support and resistance was broken?

There is no definite answer to this question. Some argue that a support or resistance level is broken if the market can actually close past that level. However, you will find that this is not always the case.

Let's take our same example from above and see what happened when the price actually closed past the 1.4700 support level.

In this case, price had closed below the 1.4700 support level but ended up rising back up above it. If you had believed that this was a real breakout and sold this pair, you would've been seriously hurtin'! 

Looking at the chart now, you can visually see and come to the conclusion that the support was not actually broken; it is still very much intact and now even stronger. 

To help you filter out these false breakouts, you should think of support and resistance more of as "zones" rather than concrete numbers. 

One way to help you find these zones is to plot support and resistance on a line chart rather than a candlestick chart. The reason is that line charts only show you the closing price while candlesticks add the extreme highs and lows to the picture. 

Looking at the line chart, you want to plot your support and resistance lines around areas where you can see the price forming several peaks or valleys.

Other interesting tidbits about support and resistance:

• When the price passes through resistance, that resistance could potentially become support.

• The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is.

• When a support or resistance level breaks, the strength of the follow-through move depends on how strongly the broken support or resistance had been holding. 

With a little practice, you'll be able to spot potential support and resistance areas easily. In the next lesson, we'll teach you how to trade diagonal support and resistance lines.

0 How to use the Trading platform ?

The best online trading platform will be designed to help the investor in executing the trading most effectively by employing strategies to maximize the return. Most of the trading platforms are powered with unique analysis and strategy-testing features to test all buy and sell rules. With a click of your mouse you can access strategy performance reports with simulated results like profit versus loss, annual rate of return, etc. Based on them you can modify your trading strategies without incurring losses.

The best platform always comes with fully automated real-time online streaming data from the market to take the advantage of the liquidity of the market. The best online forex trading platform connects your monitor to the markets. This also ensures that you get the execution prices on every order type available without any slippage. The best trading platform should provide the robust backbone to handle transaction of heavy data and information traffic.

The best platform must offer more than one type of account like standard, institutional or mini. The platform should come with different operating packages like Flash, Java, or WAP. These software's provide firewall protection to maintain the security and integrity of your trading. You can perform your trading from home, office, laptop on the go or even from an internet cafe with equal ease. The best online forex trading platform will facilitate you to use the system without downloading any program, which presents perfect mobility to the traders or investors.

The best platform should offer:

-Tight spread on all major currency pairs with cutting-edge trading technology
- Quick execution with unlimited transaction amount
- No slippages and no requites
- Constant margin requirements in all volatile market condition
- Multiple real-time charts and other technical analysis based predictions with maximum visual representation
- Flexibility of placing complex orders including contingency orders
- Real time margin and position monitoring.
- Technical analysis for all demo and live accounts
- Authentic market news and economic calendar
- Performance, Security, Simplicity and Transparency
- Trading history and print out any reports
 -With advanced mobile platforms, you can operate when you are away from your computer.

1 Three Types of Analysis

The Big Three

You did go through the Basic Level, right????
By now you've learned some history about the forex, how it works, what affects the prices and More & More…….
We know what you're thinking...

BORING!  SHOW ME HOW TO MAKE MONEY  ALREADY!!!!

Well say no more friends because here is where your journey as a forex trader begins...
This is your last chance to turn back...
Take the Red pill   forget everything, and we'll take you back to where you were before.
You can go back to living your average life in your 9-5 job and work for someone else for the rest of your life...
OR...
You can take the Green pill, which is fully loaded with the dollar extract, and learn how you can make money for yourself in the most active market in the world, simply by using a little brain power.
Just remember, your education will never stop. Even after you graduate from the School of Pipsology, you must constantly pursue as much knowledge as you can, so that you can become a true FOREX MASTER! The learning never ends!
Are you ready to make that commitment?
Now pop that green pill in, wash it down with some delicious chocolate milk, and grab your lunchbox... the School of Pipsology is now in session!

Three Types of Market Analysi:

To begin, let's look at three ways on how you would analyze and develop ideas to trade the market. There are three basic types of market analysis:
1.    Technical Analysis
2.    Fundamental Analysis
3.    Sentiment Analysis
There has always been a constant debate as to which analysis is better, but to tell you the truth, you need to know all three.

It's kind of like standing on a three-legged stool - if one of the legs is weak, the stool will break under your weight and you'll fall flat on your face. The same holds true in trading. If your analysis on any of the three types of trading is weak and you ignore it, there's a good chance that it will cause you to lose out on your trade!