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Price movement component

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Price movement component in Forex Education_xx
1. Trends
Trends are defined as the price tendency to move in one direction. In simple terms, trends are divided into 3 types:
Uptrend, namely price movements that rise gradually.
Downtrend, namely price movements that decline gradually.
Ranging or Sideways, which is when the price shows consolidation due to the attraction between the seller vs. party. buyer. In this condition, the direction of the trend is difficult to know because prices only move up and down within a certain range.
 
2. Volatility
The magnitude of the distance between periodic fluctuations in prices is called volatility. High volatility means that prices go up high quickly then suddenly drop quickly too, so that the difference is very large between the lowest price and the highest price at a time. On the other hand, lower volatility means that the exchange rate does not fluctuate much, and the changes tend to be small over time.
3. Momentum
This momentum has something to do with the trend in the first point above. In order not to be wrong or late entry, we need to know first the strength of the trend that is happening. This strength is called momentum. With the help of momentum, we can find out whether the trend will continue (momentum strengthens) or even turn around (marked by a weakening of momentum).

4. Market Strength
The intensity of market opinion related to a price, by looking at the market position taken by various market participants, is called market power or market sentiment. In the forex market, this sentiment has a significant effect on the market conditions being traded. Negative sentiment will usually weaken the market, while positive sentiment tends to strengthen price movements in the market.

 5. Cycle
That is the tendency of market prices to move in certain cycle patterns. One theory of analysis that reviews the pattern of price movements in a particular cycle is Elliot Wave. Here, prices are mapped in 5 main waves and 3 corrective waves. If the price has formed all of these waves, the trend will continue.

6. Support Resistance
When traders assume the current price level is too high, they will tend to end the buy action and take profit-taking. This action causes prices to fall after reaching a certain high level, or commonly referred to as Resistance. Conversely, there is a price level that traders consider to be quite low, so those who sell will make profit-taking. As a result, prices will be corrected up from a level known as Support.


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#1 - February 03, 2019, 09:59:52 PM

  • Price movement component in Forex Education_Bruce_Willis
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hi nendy,
after i read your post last hour ago,there are some values behind your post.i hope i can learning & get knowledge from your post
#2 - February 03, 2019, 11:30:10 PM

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thank you for the positive comments,

I really appreciate your opinions and suggestions, hopefully my posts can benefit us all
#3 - February 04, 2019, 06:09:59 AM

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what you explained above is very true in the forex market, there are a number of driving components that are the main indicators, as you explained above, that is very true and this is something that we must know about a trader for knowledge in the world of forex trading.
#4 - February 05, 2019, 01:57:03 PM

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after I read this post I gained more knowledge
#5 - February 05, 2019, 02:08:26 PM

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In my opinion the most important and basic component is the area of support and resistance. Therefore it is important to understand that prices move nothing but simply because of functions and consequences
from the Law of Supply and Demand, not because of anything else. Price
move only and only if this simple calculation becomes unbalanced. Therefore it is very important for traders to learn and apply it in trading about this matter in order to obtain a high probability of profit
#6 - February 05, 2019, 10:59:04 PM

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nendi night. I am very excited to read your writing. very inspiring. and in my opinion supplay and demand also support and resistance are two components that cannot be separated in analyzing price movements. without downplaying other indicators, I think these two things are my current grip.
#7 - February 10, 2019, 01:45:54 PM

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prices are indeed driven by these components, but we also need to be able to find out the strength of the supply and demand caused by the movement of the forex market so that we can know the direction of the price.
#8 - November 05, 2020, 05:33:38 AM

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of the components that you have mentioned do reflect the movements in the forex market and that is reflected in a price chart. By understanding and being able to identify each component, it will be easier for us to reach the target as desired.
#9 - November 05, 2020, 05:07:35 PM

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The most influential in my opinion is the support and resistance area, so these two things are widely used by traders to perform analysis and transactions in the market
#10 - November 05, 2020, 10:05:04 PM

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prices are basically driven by supply and demand so if we want to identify the effects of price movements we must be able to measure the quantity of demand and supply.
#11 - November 11, 2020, 04:04:16 PM

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the method used to find out whether there is a movement that is not learned because to get it must require honesty.
#12 - November 11, 2020, 04:43:13 PM

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Several things that affect price movements are fundamental news, political economy issues and also market sentiment that affects the amount of supply and demand.
#13 - November 12, 2020, 01:29:23 AM

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prices move on the basis of support from demand and supply accumulated in the inter market and forex players consist of a large number of people, companies and also central banks.
#14 - November 12, 2020, 01:55:37 AM

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actually the price is only driven by 2 components, namely supply and demand, it's just that what causes the price to move is very complex so not all traders know that.
#15 - November 12, 2020, 02:44:04 PM

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