How to read Retracements , Retracements patterns in Binary Options of Forex trading and how to deal with it?
Answer: Firstly, relating the retracements concept with the help of real-life definition is key to understanding retracements. Definition of Retracements with real-life know definition: In real life Price Action, Retracements should be compared with Newton's third law of motion that is "For every action, there is an equal and opposite reaction". Similarly, retracements in Forex or stocks trading are the same where buyers from the buyer's area take action and sellers from the seller's area react and vice versa. The thing we should note here is whether the reaction is equally opposite or not. Now if sellers in those areas are weak then their reaction is not equal and the major trend continues. I.e. Buyers again react to sellers' actions. This continues until the reaction of one side (Buyers or Sellers) becomes equal and then starts dominating. This is what we also know as Momentum Shift. Momentum and Trend are the most influencing factors in tr