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R3 and S3 are good indication for the maximum range for extremely volatile days but can be exceeded occasionally.
Pivot lines work well in sideways markets as prices will most likely range between the R1 and S1 line.
In a strong trend, price will be low through a pivot point line and keep going.
If there is significant news to influence the market price may go straight through R1 or S1 and reach even R2 & R3 or S2 & S3.
Drag your Fibonacci retracement levels from the lower to the higher of the last week (24th - 28th of October, 2011) in order to determine low and high price.
Average = (Higher - Lower) / 2
Average = 1.4022
InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.
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