Forex minimum and maximum points
The exchange rate always moves along a curve; at each time period, the main minimum and maximum points can be identified; they characterize the minimum and, accordingly, the maximum price level on a given time frame.
The meaning of these indicators is quite important, since it is these points that serve as the basis for building price channels and are used in many Forex strategies.
It is also the basis for conducting in-depth technical analysis.
For example, the minimum price for the EUR/USD currency pair during the day was 1.2574, that is, the price did not fall below this value during the day.
Minimum and maximum points serve as the main guidelines when drawing up many Forex trading strategies, therefore the effectiveness of all trading directly depends on their correct determination.
In order to determine the minimum or maximum for a certain time, you need to take several simple actions. The main tool in this case will be the chart of the selected currency pair, on which you should highlight the time period necessary for the analysis.
Then we visually determine where the minimum (maximum) price value is located on a given segment of the chart, this will be the point we need.
For example, the presented figure clearly shows that the price of the EUR/USD currency pair had the following indicators during the day: High – 1.2613 Low – 1.2574.
To determine this, you can also use a special minimum-maximum indicator that will display the minimum and maximum prices for the time period you select.
The resulting minimum and maximum points allow us to set levels, beyond which the price is likely to continue its movement. After this, it is possible to place pending orders, which will bring profit in the event of a breakdown of the level and further movement of the trend.
If necessary, you can select several of the most significant points at once, usually at least two points, which will make it possible to build a price channel that will most fully characterize the current situation on the market.