In addition to the strength of the above, there is also strength inside that could not move the normal market, so as to form a pattern of irregularities. This power is the power of greed
kind of pattern deviation caused greed and fear.
1. Chart Patterns Rough
What is meant here is steep diagram stand . However, to achieve a certain price level, it would have been formed chart pattern is skewed because there limitation period.
Consider, for example, daily candle kemarian length is 0 pips. In 1 day 24 hours so there is mileage on average in 1 hour was 5 pips. This suggests that the normal conditions in the early hours of the price only moved about 5 pips only. Therefore, if the price and then move 100 pips in 1 hour, this means no normal.
stiff chart pattern as occurs due to excessive greed. Usual trader greed to cause the graphic was stiff:
- To buy or to continuously buy the lot size is great when long positions before being lucrative and at the time the trend clearly visible increase so the price goes up in quick time pattern forming strong increase
-. sale continuously or only sell in the number of lots a lot when short positions before being profitable during the downward trend is clearly visible that the price movements in a short time established a pattern steep drops.
After the formation of this stiff chart pattern in psychology will frighten those who have earned a lot of profit, which is the profit of fear was obtained be lost if the price then turn around. In addition to the steep mnculnya models also realize most traders that the price is moved is not normal so price will soon return to its normal route.
fear and consciousness is then traders covered positions for the benefit obtained, or open new positions opposite to the trend (against the trend).
Closing of positions means performing actions contrary to previous interest. If earlier, is to ask the base currency and when closed provides the base currency, and vice versa. Thus, when the closure, the market will move in the opposite direction before.
If the fears were felt by some traders, the number of lockout position just a little so that the direction of the market reverse a short, reversal this short now we are referring to a correction.
But if the fear is excessive shopping or too many who feel there will be too the position could reverse forming market quickly navigate the pattern closing reflection. Similarly, when a lot of traders who are aware of the market's normal derivative, there will be much for opening a position against the trend so that the price rebounds.
The shape other than the slope model is interval training. Gap or the difference between a candlestick with a candle next show great interest that arises in real time so the price jump, or great interest the blocked so that once the lock is open price jumped away.
Directions next after the gap depends on the position and length of gap space itself.
Basically, this difference shows the addition of interest, so that the price will go directly to the compliance gap occurs. But if the gap is formed, it is too far or too long, in addition to many traders benefit, it will also make the movement of the graph is not fair that will ultimately many traders close positions or open new positions opposed . Of course, this makes the direction opposite price.
If the deviation occurs after the interest grows, then the addition of interest could be considered as something natural (no original too abrupt), so after a break early interest in the growth of prices will continue to evolve in the direction of the gap.
to be against nature if the gap emerging after weakening. While this difference may be considered a tax. After a gap like this, the price will turn around.
In addition, the material -7 series deal with other irregularities chart pattern is a pattern of deception and convergent divergent