Handle

In forex trading, the term “handle” refers to the whole number part of a currency price quote. It represents the price level without the decimal portion. For example, if the EUR/USD currency pair is quoted at 1.2345, the handle would be 1.

Handles are important in forex trading because they often serve as psychological levels or points of interest for traders. They can act as support or resistance levels, where price tends to react or reverse. Traders often pay attention to these levels as they can provide trading opportunities or signal potential trend reversals.

Handles can be particularly significant when they coincide with other technical analysis tools or patterns. For example, if a handle aligns with a trendline or a Fibonacci retracement level, it can strengthen the potential support or resistance at that level.

Traders use handles in various ways to make trading decisions. Some traders may look for breakouts or bounces off handle levels, while others may use them as profit targets or stop-loss levels. Additionally, handles can be used to identify trading ranges or consolidation patterns.

It’s important to note that handles are not the only factor to consider in forex trading. Traders should always analyze the overall market conditions, use other technical indicators, and consider fundamental factors before making trading decisions.

Overall, handles in forex trading represent significant price levels and can provide valuable insights for traders. They can act as support or resistance levels, and their significance increases when they align with other technical analysis tools or patterns. Traders often incorporate handles into their trading strategies to identify potential trading opportunities and manage risk effectively.