Price Movement

Things that will immediately grasp is that the nature of the movement of exchange rates gradually and are not constant.

This applies to the movement of exchange rates as it applies to the movement of the stock and commodity prices and everything is traded in the financial markets.

What do you mean by that?

It means that even if a currency will rise 100 points in 5 hours, for example, the price of it will not rise beyond the hour and minute hour and a minute behind, but the rally will bring together a lot of dips .. !!

But wholesale rises.

If we assume that the price of the euro now EUR / USD = .9800 and was expected to rise 100 points which will become the euro EUR / USD = 0.9900 price in 5 hours.

Even if ratified, the expected price movement may be as follows:

Price now .9800 EUR / USD =

Then the price will be reduced for ten minutes until it reaches EUR / USD = .9780 any dropped 20 points from the first floating price shall be your loss = $ 200 if you bought 1 lot on the price first.

And then rise for half an hour to the price up to EUR / USD = .9845 ie it rose 45 points from the first price and becomes a floating profit = $ 450.

Then drop a half-hour to the price up to EUR / USD = .9790. Ie, 10 points down from the first price consists of floating bris now = $ 100.

And then rise for an hour until it reaches the EUR / USD = .9860 which rose 60 points from the first price and a floating profit = $ 600.

Then falls for a quarter of an hour to be up to EUR / USD = .9815 becomes floating profit = $ 150 after it was $ 600.

Then you may come back to rise strongly to be up to the price of EUR / USD = .9900 after five hours as we expected.

Thus, the price will continue to drop and rise an hour and an hour behind but wholesale rises to be up to what we expected was far beyond our expectations.

As you can see it is like to climb the AC .. !!

That is the reason for the headache .. !!

When you open a deal often find yourself a loser and then become a winner and a loser back then suddenly turns into a big winner .. !!!

Therefore Many beginners feel dismayed when the price starts to decline Fajova that the price will continue to decline may decide to sell at a loss and closing the deal so quickly for their losses. Thus Atzdad turn a loss into a real loss because they have completed the deal and closed it.

But the price has come back after that to rise and become winners after they were losers.

But too late, they have closed the deal at a loss if they are patient turned slightly to the floating loss of profit and then were able to close the deal winners rather than losers Aglqoha .. !!

It's all based on your confidence in the prospect you are confident of the safety of your expectations will not be afraid to nothing if the price dropped a little bit, because you are confident that he will return to rise shortly after.

The prospect of this will be based on the price movement analysis using technical analysis and news technologies, which we will talk about later.

It is like a game of biting fingers .. !!

Would win from able to develop its capabilities and the introduction of the reasons for analysis and risk management techniques ..

And it would win from the force of the nerves and calm the psychological and self-confidence ...

This requires long experience and practice and see .. It is worth the effort it ..

Millions in front of you and all you need is to learn how to reap the greatest possible ones .. !!

Corrective Movement Retracement or Correction

When you proceed to the movement of exchange rates often you will hear about that, "Doe currency moves corrective movement."

This is the nature of the natures of the price movement. What is meant corrective movement?

Is the same as the gradual nature of the movement of the currency that we talked about, but often within a wider time frame.

For example: if it was destined for the euro to rise during the seven-day 820-point rise, for example, it has the following form:

On the first day 180 points.

In the second on 150 points.

In the third on 240 points.

In a fourth day price drop 120 points.

In the fifth day price drop of 50 points.

In the sixth day the price rises 200 points.

In the seventh day rise 220 points.

As you can see, the total Artfh the euro from the first day to the seventh day. It is equivalent to 820 points, it was on the rise daily with the exception of the fourth day and the fifth day where the price dropped two somewhat by the rise to come back later.

The price movement is called in the fourth and fifth days, correcting price Retracement.

It is a movement to reverse the general trend of price movement.

You can be perceived as if the market takes a break with his breath after he 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 rest period is not a requirement to be in the fourth or fifth day you may be at any time, and no one knows exactly when it can occur, but when the price moves in one direction for a period of time and strongly it is expected a correction in price and the lower price continued to walk in his direction without stopping the more likely near the corrective movement occurs.

Why is it important to know the truth about this price action?

When you know the truth and see that the currency rate continues to rise for several days has been considering the purchase of this coin, but when you see that this rise was strong and fast and sustained it is better to wait a bit before buying because it expects a correction in the price of the currency movement to go back and go down a little bit before they resume rise, it would be smart to buy the currency at that moment because you will buy more at a low price.

And vice versa in the currency, which decreases rapidly and continuously and continuously where correction Correction currency is going to be a little bit higher to continue to fall again later.

At the present stage it does not have to worry too much if you do not understand the policies included in this page once you start practice, you will understand all this very clearly and you'll see for yourself how moving exchange rates and have stated the nature of price movement here to let you know it is no more the Mnfem does this mean you can not Flabos now you will understand everything a little practice!