Reader Comments

Forex Wealth Strategy Review

by Selva Raj (2019-02-05)

First of all it is important to realise what drives the Forex Wealth Strategy forex markets and to understand the importance of significant, psychological or whole numbers. Once we have established this without going into too much technical analysis then we can look at using these resistance and support levels to consistently take profits from the forex markets.The Foreign Exchange markets have no main hub and therefore virtually impossible to manipulate like stocks and shares. It is the most volatile market that has £80 billion pounds traded on it every day and is driven purely by the expectations of people trading it and the value of a current countries currency value against another.Psychological, significant or whole numbers are the currency values that we see on the right hand side of our charts. Any number that ends in a "0" is a possible psychological number. The more zero's there are at the end of a currency the more of a psychological number you will find that particular value to be. A good example of this is the GBP/USD chart; the number 20000 indicates $2 to every £1. This is one of the biggest psychological numbers therefore you will see this level become a main area of support and/or resistance hence the charts will bounce of this value consistently. The reason it becomes support or resistance is because traders will see this figure as an area to take their profits which in turn will slow the volatility of the currency down and even reverse its direction as traders use it as a figure to enter the trade in the opposite direction. It is from this phenomenon that we can see just how much the Forex Market is driven by traders themselves.