For each action there is equal and opposite directed counteraction.
Traders at all levels should reckon with wave-like movement on price schedules. They define basis cycles according to which strategy are under construction or the risk is planned. Inherently, these waves reflect constant battles between bulls and bears. The price moves pushes, making a wave, but sometimes does pauses to check up the previous borders. Price bars are compressed, the volume essentially decreases, and the trend is rolled away against the initial direction. But, as the market comes back to a steady condition, the action-counteraction cycle restores. The new impulse bears repeatedly woken trend to new level of the price or develops it back to the initial.
But why the markets it is not fixed between two horizontal extrema if a trend and anti trend have equal force? The answer consists in how the active markets disseminate the directed force. Each buyer should sell finally and each short seller should redeem finally a position. It stimulates layers of cycles which through any time equalize action and price counteraction.
Swings-traders observe this dynamic process in trend relativity on schedules of various lengths for the same tool. In other words, separately taken market can draw strong lifting on the day schedule, the bear market on the hour schedule, and a lateral congestion on 5-minute, and all it at the same time. While this process can seem chaotic, actually it reflects polarity of action-counteraction. Such three-dimensional axis of a range of trend also bears additional benefit: The coordination with it defines many alarm installations of the swing-trader.
Arrange these important possibilities of convergence of certain misbalanced of action-counteraction through some layers price activity. Such logic analysis also supports also the return relation that conducts to successful swing-trading. For example, while the crowd sees purchase possibility when price waves on a heavy site, the swing-trader in the same market sees growing force of sales because of an input of new crowd of buyers. On such kind anti intuition logicians are made the fortunes received by comprehension of basic force physicists of the market.
Modern traders experience the big difficulties with the organization of market movement in operated and executed system. Too often they ignore the important data of schedules because they are not entered in convenient system of horizontal borders of the price. This obsession with artless models finds out inability of the trader to catch more powerful mechanics of a prediction of the price. Unfortunately, concentration on performance of narrow, unique strategy is similar to attempt to play a melody monotonously.
Expand horizons of your knowledge of trading, having applied physics of the market. Each new aspect increases your ability to get profit from tiny nuances of behavior of crowd. Keep in mind that these natural forces rely on mechanics which will be ignored by many speculators. It allows you to get advantage on a way to successful trade. All life can be demanded to investigate these difficult interactions between development of the price and emotions of crowd. But each part of this attractive riddle adds new levels of perfection to productivity of trading.
If you want to participate in forex trading must start from learning the basics of currency exchange market to make sure you do not experience problems with this industry.