Sunday, January 2, 2011

The importance of day high & low


Hello ppl :)

So now lets discuss on the important of day's high and low.if u are aware of previous day's high and low, you can spot good trading opportunities and trade them.below are some important points :-

1. most of the time, in early asian trading session price usually will move within the range. in other words, its very unlikely for the price to move above or below the previous day's high or low except if there are some major news occurred.

2. after the London and New York markets are closed, price will usually move back into the range except if there are some major news occurred.

3. note that after the London and New York market are closed, market become inactive and profit taking activity usually takes place.thats why the price move in opposite direction.


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