The Forex trading market is an excellent place to start speculation on financial markets. It has become one of the most traded upon trading markets in the world in a very short time span. The best part about this market is that the assets it deals in are extremely liquid; thus as a person who trades during the day does not necessarily have to worry too much about the asset’s liquidity for exit.
This market is open for 24 hours from every Sunday afternoon up to Friday evenings. The liquidity advantage and its long business hours suggest that it provides more prospects for trade, greater elasticity, less transaction costs as compared to other markets.
Despite all the advantages Forex trading market provides, it is not easy to make money unless you learn the system and figure out; when you need to enter and exit and master the strategies that are employed by successful traders in this market.
Using the support and resistance will help you tackle the Forex trading market. As these are places where you can exit and also these are place where the market rebounds and lets you enter. The Fibonacci levels and pivot point levels all point towards exits and entry points. Remember that the market opens with the first level of support and resistance (S1) and (R1) and most of the trade remains in this level until it moves towards the next level of (S2)&(R2) and then on to (S3)(R3).
The other means of judging when is the best time for entry and exit are through MACD technical indicator, in this indicator you look at bars which represent activity at given instances and these bars move in crests and busts over and under the graph. When they flip over of the histogram that is when you can exit.
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