The nature of the movement of prices
Of the things that will immediately grasp is that the nature of the movement of exchange rates is gradually and not continuous.
This applies to the movement of currency rates as it applies to the movement of stock and commodity prices and all that is traded in the financial markets.
What do you mean by that?
By that we mean that even if the price of a currency will rise 100 points in 5 hours, for example, it will not rise an hour behind the hour and minute behind minutes, but the height Satakllah lot of dips!!
The but Wholesale rise.
Even if true we expected the price movement may be as follows:
Price now .9800 EUR / USD =
Any dropped 10 points from the first price consists bris floating now = $ 100.
Thus price movement continues in the low and high hour behind Wholesale hour but rises to be up to what we expected, was far beyond our expectations.
As you can see it is like to climb AC!!
And that is the reason for headaches!!
When you open a deal often find yourself a loser and then become a winner and then return a loser and then suddenly turn into Rabah Kebir!!!
Therefore Many beginners feel dismayed when the price starts to decline Fajova of that price will continue to decline may decide to sell at a loss and close the deal quickly so to Atzdad their losses. And thus become a real loss to the loss because they have completed the deal and switched them off.
But may return the price to rise and become winners after they were losers.
But after it is too late has closed the deal at a loss if they had little patience for floating turned loss to profit and then managed to close the deal winners rather than Aglqoha losers!!
The issue is all dependent on your confidence in your prospect you are confident of the safety of your expectations will not be afraid to nothing if the price fell a bit, because you are confident that he will return to rise shortly after.
Bet this will be based on the analysis of price movement using technical analysis techniques and news, which we will talk about later.
It is like a game of biting fingers!!
Win able to develop its capabilities and pursue analysis and risk management techniques ..
And win with strong nerves and calm psychological and self-confidence ...
This requires experience and long practice and see .. It is worth the effort it ..
Millions in front of you and all you have to do is to learn how to make as much of them as possible ..!!
Corrective Movement Retracement or Correction
When following up the movement of exchange rates often you will hear about that "the Fulani moving currency corrective movement."
And this is the nature of price movement natures, what is the corrective movement?
Is the same as the gradual nature of the currency movement that we talked about, but often within a wider time frame.
For example: if it was destined for the euro to rise within seven days 820 points, for example, the rise in the following form:
On the first day 180 points.
In the second on 150 points.
In the third on 240 points.
In the fourth day the price drops 120 points.
In the fifth day the price drops 50 points.
On the sixth day the price rises 200 points.
In the seventh day rise 220 points.
As you can see, the total Artfh euro from the first day of the seventh day, the equivalent of 820 points. He was in high daily with the exception of the fourth day and the fifth day where the price fell two somewhat before returning to rise later.
Called the price movement in the fourth and fifth days the correct movement of the price Retracement.
A movement to be in the opposite direction of price movement.
You can be perceived as if the market takes a break breath after it has moved strongly in one direction for a period of time to be completed after the price to walk towards him again.
Of course, this break is not a requirement to be on the fourth day or fifth may be at any time and no one knows exactly when can occur, but when the price moves in one direction for a period of time and strongly becomes expected a correction in the price and the more price continues to walk in his direction without stopping the more likely near a corrective movement.
Why is it important to know this truth about the price movement?
When you know this truth and see that the price of a currency continues to rise for several days might consider buying this currency, but when you see that this rise has been severe and rapid and sustained better to wait a bit before buying because it expected a correction in the price of the currency to go back and go down a bit before re- rise, it would be smart to buy the currency at that moment because you will buy more at a low price.
The opposite is true in the currency goes down rapidly and continuously and continuously where the correction will be Correction is somewhat rising currency to continue to fall again later.
At the current stage need not worry too much if you do not understand Helms on this page once you begin practice will understand it all and very clearly and you'll see for yourself how moving exchange rates and has reminded the nature of price movement here for your reference, by not more, you can not Mnfem meant so Flabos now will understand everything a little practice!.
Of the things that will immediately grasp is that the nature of the movement of exchange rates is gradually and not continuous.
This applies to the movement of currency rates as it applies to the movement of stock and commodity prices and all that is traded in the financial markets.
What do you mean by that?
By that we mean that even if the price of a currency will rise 100 points in 5 hours, for example, it will not rise an hour behind the hour and minute behind minutes, but the height Satakllah lot of dips!!
The but Wholesale rise.
Even if true we expected the price movement may be as follows:
Price now .9800 EUR / USD =
Any dropped 10 points from the first price consists bris floating now = $ 100.
Thus price movement continues in the low and high hour behind Wholesale hour but rises to be up to what we expected, was far beyond our expectations.
As you can see it is like to climb AC!!
And that is the reason for headaches!!
When you open a deal often find yourself a loser and then become a winner and then return a loser and then suddenly turn into Rabah Kebir!!!
Therefore Many beginners feel dismayed when the price starts to decline Fajova of that price will continue to decline may decide to sell at a loss and close the deal quickly so to Atzdad their losses. And thus become a real loss to the loss because they have completed the deal and switched them off.
But may return the price to rise and become winners after they were losers.
But after it is too late has closed the deal at a loss if they had little patience for floating turned loss to profit and then managed to close the deal winners rather than Aglqoha losers!!
The issue is all dependent on your confidence in your prospect you are confident of the safety of your expectations will not be afraid to nothing if the price fell a bit, because you are confident that he will return to rise shortly after.
Bet this will be based on the analysis of price movement using technical analysis techniques and news, which we will talk about later.
It is like a game of biting fingers!!
Win able to develop its capabilities and pursue analysis and risk management techniques ..
And win with strong nerves and calm psychological and self-confidence ...
This requires experience and long practice and see .. It is worth the effort it ..
Millions in front of you and all you have to do is to learn how to make as much of them as possible ..!!
Corrective Movement Retracement or Correction
When following up the movement of exchange rates often you will hear about that "the Fulani moving currency corrective movement."
And this is the nature of price movement natures, what is the corrective movement?
Is the same as the gradual nature of the currency movement that we talked about, but often within a wider time frame.
For example: if it was destined for the euro to rise within seven days 820 points, for example, the rise in the following form:
On the first day 180 points.
In the second on 150 points.
In the third on 240 points.
In the fourth day the price drops 120 points.
In the fifth day the price drops 50 points.
On the sixth day the price rises 200 points.
In the seventh day rise 220 points.
As you can see, the total Artfh euro from the first day of the seventh day, the equivalent of 820 points. He was in high daily with the exception of the fourth day and the fifth day where the price fell two somewhat before returning to rise later.
Called the price movement in the fourth and fifth days the correct movement of the price Retracement.
A movement to be in the opposite direction of price movement.
You can be perceived as if the market takes a break breath after it has moved strongly in one direction for a period of time to be completed after the price to walk towards him again.
Of course, this break is not a requirement to be on the fourth day or fifth may be at any time and no one knows exactly when can occur, but when the price moves in one direction for a period of time and strongly becomes expected a correction in the price and the more price continues to walk in his direction without stopping the more likely near a corrective movement.
Why is it important to know this truth about the price movement?
When you know this truth and see that the price of a currency continues to rise for several days might consider buying this currency, but when you see that this rise has been severe and rapid and sustained better to wait a bit before buying because it expected a correction in the price of the currency to go back and go down a bit before re- rise, it would be smart to buy the currency at that moment because you will buy more at a low price.
The opposite is true in the currency goes down rapidly and continuously and continuously where the correction will be Correction is somewhat rising currency to continue to fall again later.
At the current stage need not worry too much if you do not understand Helms on this page once you begin practice will understand it all and very clearly and you'll see for yourself how moving exchange rates and has reminded the nature of price movement here for your reference, by not more, you can not Mnfem meant so Flabos now will understand everything a little practice!.
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