Minimums and maximums are practical points.

These indicators are among the most important when trading on Forex; they can be used to draw conclusions about the current trend.

Lows and highs serve as the basis for opening or closing existing positions and enable the construction of price channels.

Forex trading is divided into time frames (time intervals), so lows and highs have their own individual values ​​for each time frame.

For example, the EURUSD currency pair's minimum price for the week was 1.3500, and if we evaluate today's low, its value is 1.3700. In other words, each time frame has its own minimum and maximum, with the higher time frame being more significant.

Determining these indicators is quite simple; all you need to do is find the lowest and highest points on the currency pair chart - the first will be the minimum, the second the maximum.

Using minimums and maximums.

• Plotting support and resistance lines - for these purposes, at least two minimum and maximum price values ​​are determined and the resulting points are connected with a line. The result is a price channel, which is used in many Forex trading strategies.

• As a guide when opening new or closing existing transactions:

Buy transactions are opened during an uptrend at the minimum point, and are closed when approaching the price maximum for a given time period.

Sell transactions are opened during a downtrend at the maximum point, and are closed when approaching the price minimum.

When the price breaks the minimum or maximum, the probability of the trend continuation significantly increases, and the significance of the indicators themselves also strengthens the trend. For example, breaking the monthly maximum will be a more important factor than breaking the daily one.