What is the name of the points from which it changes direction in the forex market?
In technical analysis, the points from which the price of a currency pair changes direction are commonly referred to as "support" and "resistance" levels.
Support: Support is a price level at which buying pressure typically exceeds selling pressure, causing the price to halt its decline and potentially reverse. It is considered a "floor" or a level where demand for the currency pair increases, leading to a bounce or a potential upward movement in price.
Resistance: Resistance is a price level at which selling pressure typically exceeds buying pressure, causing the price to halt its ascent and potentially reverse. It is considered a "ceiling" or a level where supply of the currency pair increases, leading to a pullback or a potential downward movement in price.
Support and resistance levels are identified through the analysis of historical price data, chart patterns, and technical indicators. They represent areas of market psychology, where traders' behavior and decisions often converge. Traders use support and resistance levels to make trading decisions, such as determining entry and exit points, setting stop-loss orders, and assessing the potential risk and reward of a trade.
It's important to note that support and resistance levels are not precise points but rather zones or areas where price reactions commonly occur. They can be subject to breakout or breakdown, where the price breaks through the level and continues its movement in the same direction.