The THIRD PRINCIPLE of the
Where the trend direction of price movement Depends entirely on the accumulation of transactions Dominated by the time market participants Transact in the currency markets
Where the trend direction of price movement Depends entirely on the accumulation of transactions Dominated by the time market participants Transact in the currency markets
we never know where and to where the price will move as we say in the
first principle, but we can surmise where the direction of the current
price trend will move by looking at or observing his movements based on
what's happened before. Alleged or estimates where the trend direction
of price movement is often used many analysts actually obtained by using
some reference or benchmark for mendefenisikan tendency of the
direction of price movements at this time. Any benchmark used to
determine the direction of the current trend is true for these benchmark
logically acceptable and have the background that have a compelling
reason to be used as a benchmark. Well, as analysts we should choose to
benchmark what we will use to determine the direction of the trend of
price movements at the moment and as an analyst of course we will choose
a benchmark that has a high degree of accuracy and are sensitive to
change and reflects the trend direction is really happening on the
current price with a high probability of
. A method or technique to determine the direction of the trend of price movements that developed and used today are always uses a number of previous good price data in large quantities or less as a base material for mendefenisikan tendency of price direction. This means that technically to specify the direction of the current price trend analysts actually just comparing current prices against the previous price data and then create a defenisi trend direction of current price based on certain criteria that is used on a method or technique used. So want to use methods of wave, candlestick, support-resistance, supply-demands, price action, statistics and so on then we know that the methods using the data of previous prices as reference. Well, simply put then I can say that for mendefenisikan tendency of the direction of price movement that today is rise or fall of any methods or techniques used are actually done by simply comparing the current price of a certain price in the previous period. And from here we can also understand and acknowledge that when differences of opinion occur between one analyst and other analysts about the tendency of the current price movement direction likely due to differences in the use of the methods and data reference used in the analysis.
As analysts our job like I tell above is determine the method that has a high degree of accuracy, sensitive to change and able to represent the condition of the trend of price movements that occur when this was real so that we get the right information or almost close to a reality that is happening on the price. From what we already understand then that matter where the price trend will move the current majority depends entirely on the type of transactions made market participants today, meaning if the current majority of market participants Transact Sell then of course the current tendency of prices to move down is greater. And vice versa if the majority of market participants currently Transact Buy then of course the tendency of prices to move up is greater. Well, based on this simple understanding can we conclude that to know the majority of these types of transactions do market participants as already mentioned in the second Principle then we need a starting point (the Starting Point) measurements to calculate or figure out what transaction that dominate the market (the majority) is currently based on the accumulation of those transactions that occur.
As we know the market is not always doing the same types of transactions, while it may be only one market participants Transact Sell and moments later there was another market participants Transact Buyâ € ™. While market participants Transact Sell then the prices will move down and by the time market participants Transact Buy then the price will move up. Well, the say it like the example above, suppose the starting price was worth then because there are transactions in the Sell rating (volume) that cause the price down 2 points so the price into 3 value. Then lets say 10 seconds then there are market participants who Transact Buy in volume in particular that cause the price up 10 points so price is changed to 13 in value then the meaning within 10 seconds if we see from the initial price value i.e. 5 means going rise 8 points because the price 10 seconds later to 13 value.
. A method or technique to determine the direction of the trend of price movements that developed and used today are always uses a number of previous good price data in large quantities or less as a base material for mendefenisikan tendency of price direction. This means that technically to specify the direction of the current price trend analysts actually just comparing current prices against the previous price data and then create a defenisi trend direction of current price based on certain criteria that is used on a method or technique used. So want to use methods of wave, candlestick, support-resistance, supply-demands, price action, statistics and so on then we know that the methods using the data of previous prices as reference. Well, simply put then I can say that for mendefenisikan tendency of the direction of price movement that today is rise or fall of any methods or techniques used are actually done by simply comparing the current price of a certain price in the previous period. And from here we can also understand and acknowledge that when differences of opinion occur between one analyst and other analysts about the tendency of the current price movement direction likely due to differences in the use of the methods and data reference used in the analysis.
As analysts our job like I tell above is determine the method that has a high degree of accuracy, sensitive to change and able to represent the condition of the trend of price movements that occur when this was real so that we get the right information or almost close to a reality that is happening on the price. From what we already understand then that matter where the price trend will move the current majority depends entirely on the type of transactions made market participants today, meaning if the current majority of market participants Transact Sell then of course the current tendency of prices to move down is greater. And vice versa if the majority of market participants currently Transact Buy then of course the tendency of prices to move up is greater. Well, based on this simple understanding can we conclude that to know the majority of these types of transactions do market participants as already mentioned in the second Principle then we need a starting point (the Starting Point) measurements to calculate or figure out what transaction that dominate the market (the majority) is currently based on the accumulation of those transactions that occur.
As we know the market is not always doing the same types of transactions, while it may be only one market participants Transact Sell and moments later there was another market participants Transact Buyâ € ™. While market participants Transact Sell then the prices will move down and by the time market participants Transact Buy then the price will move up. Well, the say it like the example above, suppose the starting price was worth then because there are transactions in the Sell rating (volume) that cause the price down 2 points so the price into 3 value. Then lets say 10 seconds then there are market participants who Transact Buy in volume in particular that cause the price up 10 points so price is changed to 13 in value then the meaning within 10 seconds if we see from the initial price value i.e. 5 means going rise 8 points because the price 10 seconds later to 13 value.
Well, in reality those transactions conducted the perpetrators of this
market could at any time as it is already delivered on the first
principle and how much volume is (yet) a transaction they will
lakukanpun we never know. We can only know those transactions that occur
after the market makers do it and where the trend direction change of
the price (exchange rate) that occurs depends entirely on accumulated
volume (the value of) transactions carried out the market participants.
If the measurement is done from a certain time prior to the current
volume (value) Buy transaction is greater than the volume (the value) of
transaction Sell then we will automatically see a price (exchange rate)
moves up from the initial exchange rate and vice versa. From this
understanding we can deduce that the accumulated volume (the value of)
those transactions conducted market participants is directly
proportional to the magnitude of the change in the price, meaning the
accumulated volume (the value of) those transactions happened we can
calculate by observing changes in the the price itself actually
. It is this understanding through later analysts develop a variety of methods to be able to figure out the direction of the trend of price movements to help them in selecting a transaction decision what should they do when transacting in the currency market. An awful lot of background theory or concept of methods developed to know this price movement direction tendencies such as statistics, trigonometry, the correlation between variables are variables that affect the price movement, the behavior of market participants, or some combination of the fundamental theories and concepts. Whatever the background of the theory or concept used by analysts to develop metodanya all have the same goal, namely to know the tendencies of the current price movement direction. The difference of each method is technically will be visible at the level of accuracy and speed of such methods in translating the information that the analyst is required in analyzing and making decisions. And the difference in the level of accuracy and speed of a method in translating information by no means reflects the good or bad of a method, since it is entirely depending on how accurate and how fast the analyst requires information that it needs. To put it simply a trader with type scalper and type long term will require a level of accuracy and speed that is different from the information that they need.
. It is this understanding through later analysts develop a variety of methods to be able to figure out the direction of the trend of price movements to help them in selecting a transaction decision what should they do when transacting in the currency market. An awful lot of background theory or concept of methods developed to know this price movement direction tendencies such as statistics, trigonometry, the correlation between variables are variables that affect the price movement, the behavior of market participants, or some combination of the fundamental theories and concepts. Whatever the background of the theory or concept used by analysts to develop metodanya all have the same goal, namely to know the tendencies of the current price movement direction. The difference of each method is technically will be visible at the level of accuracy and speed of such methods in translating the information that the analyst is required in analyzing and making decisions. And the difference in the level of accuracy and speed of a method in translating information by no means reflects the good or bad of a method, since it is entirely depending on how accurate and how fast the analyst requires information that it needs. To put it simply a trader with type scalper and type long term will require a level of accuracy and speed that is different from the information that they need.
