The FOURTH PRINCIPLE
the dominance of Transactions one of the
market participants will be Weakened because of two things, first: When
one of the market participants are not able to Accept a price Above the
highest price or the lowest Price Below happened.
Second: When The Volume Of Transactions Made Market Participants In The Currency Market In Numbers Little Or Small.
And small or at least the Volume of transactions that occur Is Likely Only to be caused by two things, namely, the first probably because market participants active in the currency market When it does a little bit and in the second it is possible that an active market participants it was a lot but they don't Transact due to waiting for the right moment to Transact in the currency markets
Second: When The Volume Of Transactions Made Market Participants In The Currency Market In Numbers Little Or Small.
And small or at least the Volume of transactions that occur Is Likely Only to be caused by two things, namely, the first probably because market participants active in the currency market When it does a little bit and in the second it is possible that an active market participants it was a lot but they don't Transact due to waiting for the right moment to Transact in the currency markets
As we already understand based on the behavior of market participants or the laws of the equilibrium of the market then we know that generally it can be said that the actual price that moving from an area agreement to the deal that formed before or moves to form a new deal area. Agreement area is the area of price or price range where the price moves back and forth along the range or area within a specific period of time. If seen from the viewpoint of the behavior of market participants then this agreement area is the area of the exchange rate (price) where market participants either acting as Sellers or Buyers feel comfortable to Transact in the currency exchange rate area because the price (exchange rate) are within limits (range) which they can receive interest or otherwise market to Transact in the area of his interests is very high. Technically the area agreement (Consensus) we can easily identify the data on price movements. The more often a level pass rates of price movement then we know that the transaction is also often done at such price levels, meaning that it can be said that market participants liked to Transact at these price levels. Conversely, if a price level is less traveled price movement then we know that the transaction is rare or little done in the price level, meaning that it can be said that market participants do not like to Transact at these price levels.
The price will move out of the Area or areas Forming the deal when an inefficient provision of interest on one of the market participants, so if the Buyers interest increased and greater than the interests of the Sellers then Buyers are likely to be seen more often Transact so prices will continue to accumulate increased and vice versa if the Sellers interest increased and greater than the interest of the Buyers then the Sellers tend to be more often Transact so prices will accumulate on the decline. Well, when interest in one of the market participants continue to rise and the interest of other market participants is dropping or not able to compensate for those transactions conducted his interest in the market then prices will continue to accumulate in one direction. The accumulated price movements in this direction if one is able to bring the price out of the previous Agreement Area then this is an indication that one of the market participants tend to bring out the price of the deal currently visible Area. If this State continues to take place followed by accumulation of these transactions continue to bring prices move to one direction and price finally completely out of the Area of the old Agreement then market participants that bring the price moves to one in this direction we say dominating the transactions that occurred at this time.
Well, when one market dominate those transactions that occur in the market then the market dominance will likely continue to persist until either one of the few things that are very clearly spelled out in the fourth Principle above happens in the market. For example at the time of the transactions that occurred in the market in domination by the Buyers then the price will continue to accumulate moving up form the price continues to be higher than before.
The process of accumulation of the movement of this ride will be stalled
while Sellers can no longer accept exchange rate (price) above the
highest price that was formed and this will be followed by a State
growing volume (value) and the intensity of the Sell transactions
undertaken the Sellers. When the volume (value) and the intensity of the
Sell transaction increases then the accumulation of transactions that
had dominated the Buy transaction will experience a decline in its
dominance. If the interests of the Sellers continue to rise then it will
happen some kind of effort on the Sellers to counterbalance the
dominance of transactions carried out with the aim of suppressing Buyers
prices are on a range of areas that favored Sellers of course. In this
State if the interest of the Buyers remained high to bring the price
even higher then it will happen some kind of resistance from Buyers
which is causing the price looks on a certain range under the exchange
rate (price) that formed when the Buyers still dominate in full.
Attempts to compensate for the domination of the Buyers who do the
sellers here's what if we observe in the data Area will be formed as the
price Agreement (consensus).
The domination of Buyers as the example above will also be halted if the volume (value) and the intensity of the transaction Buyers begin to weakens or shrinking. Weakened or sags volume (value) and the intensity of the Buyers is only caused by two things that may happen in the market, namely: first because of the time the active market participants to transaction is completed (market Closed) or almost finished second and the market participants lose activity of this transaction because it is waiting for something fundamentally is directly related to the tendency of the direction of movement of currency exchange rates. When this situation occurs and the interests of the Sellers are also still small then the price data will be seen moving within a narrow range relative during a certain time. This situation is often found when the market approached the London or New York time Closed his data on price movements. As an analyst of our task one is having the ability to identify things that are mentioned above.
The domination of Buyers as the example above will also be halted if the volume (value) and the intensity of the transaction Buyers begin to weakens or shrinking. Weakened or sags volume (value) and the intensity of the Buyers is only caused by two things that may happen in the market, namely: first because of the time the active market participants to transaction is completed (market Closed) or almost finished second and the market participants lose activity of this transaction because it is waiting for something fundamentally is directly related to the tendency of the direction of movement of currency exchange rates. When this situation occurs and the interests of the Sellers are also still small then the price data will be seen moving within a narrow range relative during a certain time. This situation is often found when the market approached the London or New York time Closed his data on price movements. As an analyst of our task one is having the ability to identify things that are mentioned above.
The FIFTH PRINCIPLE
the dominance of the transaction and the
weakening of the dominance of transactions that occur In the
accumulation formed two Conditions of price movement that is Trending
Conditions and conditions of Sideway. The second condition is
Technically can be seen by observing the shape of Data distribution that
is formed, either Visually Or Using the principles of measurement.
Those transactions conducted market participants in the Forex Market is the main cause of the formation of price movement. Well, if the price (exchange rate) that occurs in a specific unit of time arrange by then susunanya will show and describe to us the changes that occur at a price over a specific time. As we already understand the formation of a price or exchange rate occurs because of the transaction in the currency market, and the transaction was carried out by market participants with specific reasons when market participants decided to commit the transaction. Whatever the reason the perpetrators of those markets when conducting a transaction then we as analysts could never figure out exactly what are the reasons that melatar-belakangi every decision taken the market participants. We can only observe what decisions they take based on observation of the changes of price data is going. Well, from here we can pull of any reasons that the correlation of market participants when they conduct transactions then the reasons directly related to their yg take decisions, namely the type of transactions that they do and the types of transactions what they do can we see from changes in exchange rates (prices) going on. The conclusion would mean that any reason market makers will be directly reflected in the price change itself.
The market participants outnumbered and we never know how exactly the amount and it also means there are very many reasons that would melatar-belakangi the decisions transactions carried out the perpetrators of this market. The good news no matter how much the number of market participants that are active transaction and no matter how many reasons melatar-belakangi their decision then the decision deals that eventually they do there are only two choices, i.e. transaction Buy or transaction Sellâ € ™. And since there are only two types of transaction that may be conducted at market price changes (exchange rate) is also just cause two things, namely the exchange rate (price) into a higher or lower being. Well, technically the rise and fall of this exchange rate if in stacking from time to time will form the order of price data based on time. Order this price data will show changes in the currency exchange rates (prices) from time to time if observed and classified this exchange rate changes then are accumulated only shows two patterns of movements of currency exchange rate changes.
The pattern of movement of the exchange rate of the currency was the
accumulation of exchange rate changes occur on an ongoing basis from
time to time in the same direction in a time of relative length, meaning
that price data from changes in exchange rates (prices), if the changes
are rising then we will see the exchange rate continues to come up from
time to time and vice versa, if the changes are down then we will see
the exchange rate continues to decline over time. The pattern of
movement of the exchange rate of the currency of the latter is the
accumulation of changes in exchange rates (prices) going on in one
direction within a relative short and then followed the accumulation of
changes in exchange rates in the opposite direction in a relative short
also, meaning that price data from changes in exchange rates (price)
changes will be seen first on one direction within a relative short and
then the exchange rate (the price of) these changes move back with the
opposite direction from the direction of the previous changes are also
occur in a relatively short.
To make it easy for analysts often use the term for the second movement of the accumulation patterns of changes in exchange rates (price) as a Trending pattern and the pattern of Sideway. Trending patterns is the pattern of accumulation of the movement of the exchange rate (price) that occurs in one direction in a relatively long, and the pattern is the pattern of accumulation of Sideway movement of the exchange rate (price) that occurs in two directions by turns in a relative short time. From research analysts also viewed that the second movement of the accumulation patterns of changes in exchange rates (prices) this always happen alternately systematically, so when the accumulation of the movement of the exchange rate of the current pattern is Trending then it can make sure that the next pattern is Sideway and so if the current pattern is Sideway then next pattern will happen is Trending patterns.
How long is the occurrence of phase patterns or patterns of Trending Sideway takes place on price movements until today is still an unsolved mystery. Long and short time of the ongoing phase of Trending patterns or technically Sideway pattern phase is directly related to the interest of the market participants are up to now still have not clearly measurable. From the time it is known that during the observation phase pattern Trending tend to look shorter than the time the phase pattern Sideway, while the range of price movements on a Trending pattern can already ascertained will always be larger than the range of price movements on a Sideway pattern. Well, a deep understanding of the pattern of Trending and Sideway patterns that occur on price movements will really help us as analysts to find out the trend of movements such as what is happening at the moment. Why? Because as we know the behavior of market participants in the Trending patterns and pattern Sideway very different and this difference is of course will make the strategies used in making the decisions of the transactions to be performed on each pattern is also different.
To make it easy for analysts often use the term for the second movement of the accumulation patterns of changes in exchange rates (price) as a Trending pattern and the pattern of Sideway. Trending patterns is the pattern of accumulation of the movement of the exchange rate (price) that occurs in one direction in a relatively long, and the pattern is the pattern of accumulation of Sideway movement of the exchange rate (price) that occurs in two directions by turns in a relative short time. From research analysts also viewed that the second movement of the accumulation patterns of changes in exchange rates (prices) this always happen alternately systematically, so when the accumulation of the movement of the exchange rate of the current pattern is Trending then it can make sure that the next pattern is Sideway and so if the current pattern is Sideway then next pattern will happen is Trending patterns.
How long is the occurrence of phase patterns or patterns of Trending Sideway takes place on price movements until today is still an unsolved mystery. Long and short time of the ongoing phase of Trending patterns or technically Sideway pattern phase is directly related to the interest of the market participants are up to now still have not clearly measurable. From the time it is known that during the observation phase pattern Trending tend to look shorter than the time the phase pattern Sideway, while the range of price movements on a Trending pattern can already ascertained will always be larger than the range of price movements on a Sideway pattern. Well, a deep understanding of the pattern of Trending and Sideway patterns that occur on price movements will really help us as analysts to find out the trend of movements such as what is happening at the moment. Why? Because as we know the behavior of market participants in the Trending patterns and pattern Sideway very different and this difference is of course will make the strategies used in making the decisions of the transactions to be performed on each pattern is also different.
