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Selective Forex Trading: by Don Snellgrove

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Chapter 7. Basic Trading Skills with S90/Crossovers and Extreme Levels in the Market

Let's quickly review the basics of previous chapters to make sure you understand basic trading skills and their importance. After all, the S90/Crossovers are the foundation of the extreme levels in a trading range. You should have this general knowledge before proceeding; otherwise, you'll be confused as to how the markets work with the extreme levels of the forex.

TRADING RANGES

Trading ranges may be found between a resistance and a support on any time compression. Some traders may even consider trading ranges as small as a one-minute time compression if they are scalpers. Trading ranges have been considered as stabilized areas of the market; recently, however, more and more traders are beginning to realize that trading ranges shift as market conditions change. Extreme levels in the markets actually identify the larger ranges as they shift, and I have heard bank traders refer to the cause of these trading range shifts as "floating Fibonacci."

Traditionally, a range is identified as having lower lows and lower highs if in a bearish market or higher lows and higher highs if in a bull market. Trading ranges must be considered in all time compressions when trading, and to take advantage of the market, you need to open-mindedly understand the value of the S90/Crossovers as well as the extreme ranges in the markets.

RESISTANCE

The resistance becomes support at a later time, once a successful S90/Crossover ...

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