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.

To determine the minimum or maximum for a specific period, you need to take a few simple steps. The main tool for this is the chart of the selected currency pair, on which you should highlight the time period required for analysis.

Afterwards, we visually determine where the minimum (maximum) price value is on a given segment of the chart; this will be the point we need.

For example, in the presented figure, it is clearly visible that the price of the EUR/USD currency pair had the following indicators during the day: High – 1.2613 Low – 1.2574.

You can also use a special minimum-maximum indicator , which will display the minimum and maximum prices for the time period you select.

The resulting minimum and maximum points allow us to establish levels beyond which the price is highly likely to continue its movement. After this, pending orders can be placed, which will generate profits if the level is broken and the trend continues.

If necessary, several of the most significant points can be identified at once, usually at least two points, which will make it possible to construct a price channel that will most fully characterize the current situation on the market.