How Do You Read a Forex Retracement?

How Do You Trade a Forex Retracement?

The forex price of a forex instrument does not move up or down in a straight line. Instead the forex price moves up or down in a zigzag forex pattern called a forex trend

Upwards forex trend - forex price moves upwards in a upwards trend then it retraces before resuming the upwards trend direction

Downwards forex trend - forex price moves downwards in forex trend direction and then retraces before resuming the downwards forex trend direction.

How Do I Analyze a Forex Retracement?

A forex price retracement is a pullback of the forex price before the forex price resumes the original forex trend movement.

Forex Retracement Meaning

How Do I Read a Forex Retracement?

How Do I Analyze a Forex Retracement?

1-2: Forex Price Moves Up - Forex Trend Direction

2-3: Forex Price Retracement

3-4: Forex Price Moves Up - Forex Trend Direction

4-5: Forex Price Retracement

5-6: Forex Price Moves Up - Forex Trend Direction

The forex price retracement definition is explained on the above example - this represents a forex retracement in an upward forex trend.

How Do I Read a Forex Retracement?