Minimums and maximums are practical points.

These indicators are one of the most important when trading on Forex; it is by them that you can navigate when drawing conclusions about the existing trend.

Minimums and maximums serve as the basis for opening or closing existing positions and make it possible to construct price channels.

When trading Forex, there is a certain division into time frames (time periods), so the minimums and maximums have their own individual values ​​for each time period.

For example, the minimum price for the EURUSD currency pair during the week was 1.3500, and if we evaluate today’s minimum, its value is 1.3700. That is, each time period has its own minimum and maximum, with the higher time frame being more important.

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

Using minimums and maximums.

• Construction of support and resistance lines - for these purposes, at least two minimum and maximum price values ​​are determined and the resulting points are connected by a line.

The result is a price channel that is used in many forex trading strategies. • As a guide when opening new or completing existing transactions:

Buy transactions are opened during an upward trend at the minimum point, and are closed when the price approaches the maximum in a given time period.

Sell ​​trades are opened when there is a downward trend at the maximum point, and closed when the price approaches the minimum.

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