Market Exhaustion Zones: Support and Resistance

However, there are also many other instruments to help traders analyze the situation, like moving averages, fibonacci retracements, chart and candlestick patterns, trendlines, channels and round numbers. Finally, the visual assessment of historic behavior of prices and especially those that have been repeatedly tested both as support and resistance can be the more accurate method to gauge probable exhaustion levels, as history tends to repeat
itself.

Being that support and resistance levels are critical for a proper understanding of the forex markets behavior, I will be developing an in-depth coverage of each one of them as a series within my technical analysis.discussions.