What i have found that it is important to identify resistance and support levels. These levels means that traders believe these levels are bearings for the currency price. If support/resistance line repeats at certain price during the long period of time it's mean that we have a very strong resistance or support level. Most of the time when price goes above resistance we can expect high volatility and also quick break out and opposite if the price goes below support level it may be strong indicator to reconsider your investment.
Please see example below. My expectations were that price will go up and will break out the resistance level at 1.3247.
A few minutes later market started to move...
Boom... got my profit, happy..
Please keep in mind that you can't use just only one tactical move such as this. Forex market is simple but in the same time it is really complex. Trader must be educated first, they need to understand what is important what's not, learn the basics. Please keep the note that this scenario happens however it is not working 100 % of the time.
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