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Price Tiers in Forex A Step by Step Guide from Beginner to Advanced...

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Price Tiers in Forex A Step by Step Guide from Beginner to Advanced...

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  1. Price Tiers in Forex: A Step-by-Step Guide from Beginner to Advanced What Are Price Tiers in Forex Trading? In the marketplace, one can think of price tiers as psychological checkpoints where prices tend to cluster and have some kind of reaction in that area. Price tiers are specific ranges/levels that market participants pay attention to, and whatever the price tier is can often cause fairly large moves in the market. In Forex (or stocks or CFD's) those price level tiers are not just a random number. These are great zones where the pressure of buying and selling reaches an extreme and creates distinguishable support and resistance levels. For instance, when the EUR/USD approaches a major psychological price level of 1.2000, this is going to be a price level that traders globally will begin to take notice of with their trading decisions. Price tiers act as a self-fulfilling prophecy for this very wavelength.fx. trading To help explain things simply, picture yourself at a supermarket needing to make a quick decision on whether to purchase a selection of groceries. They are grouped into approximately three tiers: under $10, $10-$20, or

  2. greater than $20. You are automatically using those groupings for ease in making a quick decision in your anticipation of purchase. Forex traders do similar things. They utilize price tiers to think of currency prices more in these tiers or price brackets which allows them to notice areas of resistance, support, pullbacks, or breaks in the market. Professional traders are interested in price tiers for three main reasons. First, price tiers help traders identify where buying interest (support) and selling pressure (resistance) are likely to develop. Similar price levels often appear on charts where the volume of trading is high and where there are many more active market participants. Finally, just like support and resistance occur at similar prices, price tiers also reflect the market's conscious collective sentiment about a price level. Simply put, if a currency keeps forming bounces near 1.1500, it is communicating something about the psychology of collective traders.spread calculator forex Consider the EUR/USD as a practical example. Over the years, this currency pair has consistently bounced off support and resistance at round numbers like 1.1000, 1.1500, and 1.2000. There is nothing coincidental about pricing, as many thousands of traders are placing component orders, stop-losses, and profit-taking orders at consistent pricing.

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