Sunday, 14 May 2017

Forex Closing Price

In real world, it does'nt matter if you not get number 1 in your class. Does'nt matter if you not get straight A's in exam. Also does not matter if you running at the back in a 10km marathon.

But what most important is at the finish line, where you are and what you get after having difficulties in that certain time. In forex, there is also forex closing price, Why it is important?

Forex closing price (here I refer as weekly price) is the final price after having huge momentum up and down through the 5-day trading. We could see the price on saturday morning or after the market/
candlestick is not moving at all. It is quite important to know about where is the closing price; is it above last week's closing price or below it.

If the closing price is higher, or the best scenario is the closing price is higher than top ressistance of the last week, that could be a signal for a retest to move higher next week. But we cannot easily enter long on monday morning because price must break the last week's highest point/ressistance line.

Sometimes price break the ressistance/support line, but then price pull back up to several hundred pips. For me that is normal because we are looking at weekly price movement. Even on daily basis, price trap could happen and trap up to 500pips. So at higher timeframe we must ready for even bigger negative floating pips.

Do you need example? Yes, take a look at EURJPY graph (13 march).

Price broke 122.82 line by a small pips, but then the pullback was huge for almost 1000pips.
On 3 may, price hit this line again.

At GBPUSD graph on 15 jan, everybody seems quite sure this pair should hit 1.19 line. But until today, GBPUSD never goes back downtrend. The retest now actually towards 1.30 mark. Why this happen? because the closing price on that week is 1.2360, way above 1.20 line or above 11 jan support line.


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