5 basic principles of ANALYZING part 1

All the ' basics ' of understanding required in analyzing price movements will be spelled out in a clear ' 5 in the basic principles of Analyzing '. And if observed carefully, honest and open mind then what we will learn is real is not the analysis of legume or "indicator minded" as many other analyst-analyst Malays who somehow is so opposed to the way that we use in analyzing price movements. Analysis we learn here the base is based on the behavior of market participants that arrogant if I may I dare say this much higher does it weigh, elite class, smart than just the name ' Price Action '. The focus of our analysis point of severity is on movements that occur in prices, the idiots language is intent this is our eye when observing and analyzing the chart first seen yg it is price data (candlestick) good that currently or previously. From price data we see that then we translate that occurs at the prices based on nothing that we understand in 5 principles below so that we get a conclusion about everything that was going on at the current price. After that, then we compare what we already conclude that with the tools-tools (indicators) that we (want) to use to assure the conclusion that we have to get before we make a decision. hehehehe Happy learning.

The FIRST PRINCIPLE
does anyone know Where And To where the exchange rate of A currency pair will move

This principle must be strictly held by each analyst to evoke and engender realization that where currency exchange rates will move after the moment is a lack of uncertainty. The lack of this uncertainty arises because of the large number of parameters that affect or cause the onset of movement of the exchange rate of a currency pair, there is a parameter that has yet to be determined exactly . Analysts mendefenisikan parameters that do not have any interest in this as a measure of market participants that are active transactions at the time. Interest in the market which plays a very important role in influencing decisions made by each market participants when transacting in the currency market (Forex Market). The difficulty analysts to gauge interest in this as something that is the exact cause of the rise of the interest due on any market participants turned out to be extremely varied, or in other words an awful lot of things that can be the cause of the emergence of interest at every market. And the worse again is also known that interest in any market participants turned out to be changed and appear at any time. Its influence on price movement this means that prices can move on to one direction or can just suddenly stop or directly reverses direction without any warning or without any sign of anything that we can to anticipate the movement detection.

Well, with the awareness that no one knows where and to which the exchange rate of a currency pair will move after this time then we as analysts will be forced to always prepare all risks that might arise from any decision we take when transacting in the Forex Market. Every experienced analysts are always preparing for two scenarios in each decision taken after doing the analysis and withdrawal of the conclusion. The first scenario is a scenario that will be executed and the second scenario is a scenario that will be executed only if the first scenario does not work as the analysis and withdrawal of the conclusions that he has done. 

 The SECOND PRINCIPLE of
prices move due to transactions carried out market participants

prices move causes only one IE because of currency transactions conducted market participants. In other words, it could be said that if there is no currency transactions conducted market participants then the exchange rate or the price will never change from the original exchange value. By understanding this principle we realise that the presence or existence of market participants in the Forex Market is directly related to the changes that occur at a price, because only with the existence of the market participants in the Forex Market was then the transaction-transaction currency allows it to happen. So if the price moves or changing its value then we know that the market participants there are in the market at that time. Well, from here we can understand why prices are seen moving very active and moving in a wide-range when some of the Forex Market is open at the same time, because of course an active market participants become more numerous in number when two or more open market in the same time. Well, as analysts we should know when a market is open and when a market is closed and at the market where many market participants are to help the effectiveness of strategies that we develop from the analysis we did.

Knowing when a Forex Market it is open or closed will help us to see the trend of transactions carried out market participants in each Market Session. This information is very important but often many novice analysts ignored it. But by observing the movement of prices happened to value price Open (opening price) in each Market Session we can directly find out where the trend direction of price movements that occur at this time. To put it simply, we know that right tendencies of the direction of price movements that rise if prices tend to play over the opening of a Market price value of Session and we know that the tendency of the direction of price movement it down if prices are likely to be played under the opening price of a Market value of Session. The value of Open or opening price in each Market Session is like a value starting price (starting price) before the transaction-transactions made market participants the next Session in the Market. So in other words where market participants in each Market that will bring the price Session we can see by comparing the price formed the current price when the Market value of the Session open.