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Areas of Support, Areas of Resistance and FibonacciWhenever you get into something new there are always many new terms and concepts to get your head around, FOREX appears to be especially so, I'm going to create a FOREX Glossary sometime, though for now I'll just post about some of the terms that I've learnt. I will also do my best to use the correct FOREX terminology :) Areas of Support: A level that the price generally doesn't drop below, as a beginner the easiest way to look at this is to draw a line that links up the bottoms of the deepest troughs. Areas of Resistance: The opposite to Areas of Support, it's a price that there is resistance to passing, easiest way to explain it is to draw a line through the highest peaks. Using these 2 lines you can begin to estimate future prices, thereby being able to trade at the most profitable moments. The reason I actually found out about the Areas of Support and Areas of Resistance is that I had read reference to Fibbonaci retracement and didn't understand what it was. I'm fairly familiar with Fibonacci numbers (except that I can never remember how to spell his name!), basically many many things in life conform to the numbers specified by Fibonacci who was a briliant Italian mathematician, I won't go into detail since lots of people have written extensively about him, you can find more information about Fibonacci here. Now it turns out that because the prices in the FOREX market tend to be wave like in appearance you can use Fibonacci numbers to predict the future peaks and troughs. I can't wait for the weekend to finish so that I can try this stuff out!
Update: Screw that, this page and site have a LOT more information, looks like I've got a lot of reading to do!
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