THEORIES OF YIN YANG METHODS
Yin Yang methods has several basic theories using simple language to facilitate understanding for its users, namely:
1.Theory If
2.Bow Theory
3.Sharp Boat Theory
4.Fishing Theory
5.Dice Theory
6.Bus Theory
7.Dream House Theory
8.Storyline Theory
Ad.1 Theory ‘IF '
If the current open is bigger than the previous open, then the trend will rise. If the current open is smaller than the previous open, the trend will decrease. This law applies to all timeframes (this theory will fall in smaller TFs for larger TFs).
EXPLANATION OF 'THEORY IF' IN THE CONCEPT OF 'YIN YANG METHODS'
As has been stated that each country has actually determined the highest and lowest prices for their respective currencies against other currencies for the sake of maintaining balance.
And this price is set every year, while in one year it is divided into two semesters. In one semester it is further divided into two quarters. In one quarter contains elements of the month, in one month is divided into four times a week, in one week is divided into five days, in one day is divided into 3 times the global market, namely; Asia, Europe and America. In each market it is further divided into 4H and in each 4H it is further divided into 1H.
Well, that's all that market players call Timeframe (TF). In each TF the price will be opened from year to 1H. from the opening price, the price must determine the highest and lowest values. From these prices, each country determines the direction and pattern of its economy.
For example Indonesia, our government can calculate and determine its expenditure budget (APBN), even the RAPBN every five years which clearly has not happened! How or where is the source of the calculation if there is no prior planning? It is clear here that actually every country has determined its price limit. And this relates to all policies that must be regulated and carried out which are then poured in the form of news issued. After knowing the news function, then we no longer need to consider the NFP or FOMC news as scary news. If illustrated, the two stories that appear once a month are like a bookstore where the store is visited by prospective buyers. But of course not all people who come to buy books, some just look at them. So once every month the shop owner must return the books to their original place to make it neat and make it easier for prospective buyers to find the books needed. Likewise prices in the forex market.
One year is a long journey time that must be passed step by step, so that is why the chart form is not a perpendicular line but as it appears today. And that's also why the chart is divided into several parts of TF starting from the smallest to the big ones. The reason is because a full year story must be done by a smaller TF.
So in this case the relation to the 'IF' theory is that if the current open (first read) is greater than the previous open, then the trend will move up. Or vice versa! But this theory will fall when the opening price in the smaller TFs coincides with a larger TF.
For example: a 4H candle consists of four 1H candles. if the price of opening the fourth candle 1H is greater than the third candel 1H, it will move up. However, this theory will fall if the current 4H opening price is smaller than the previous 4H opening price. Likewise with other TFs ...
Ad.2 BOW Theory
If an arc is to be shot towards the target point, then the bow must be stretched first. Likewise, market movements. If the target point is above, then he will move down first to find a foothold before reaching his target. Or vice versa when the target point is below.
Ad.3 Sharp Boat
Like the movement of a boat, where if the bow shifts, then the stern also shifts. Just likewise the movements in the chart. If the High shifts up / down, then the Low is too.
The theory of this sharp boat applies to all timeframes, so that it forms a direction from pier A to B and returns to A again.
Ad.4 Fishing Theory
Determine the location where we fish and target our catch with the bait we have. Similarly, trading. Determine the type of account and number of lots, and realize the acquisition according to the amount of our capital.
Ad.5 Dice Theory
In the type of dice game, usually we will divide the capital that we will risk so that the possibility of winning is greater than the possibility of losing. Likewise in forex. We must divide the margin for each lot in each open position with discipline.
Ad.6 Bus Theory
If we want to travel far, we must prepare everything. We have to know what bus we can use, where to go, how much it costs, what cities we will pass etc. (methods). We also have to plan how long we stay at the destination, what costs must be spent, what activities will require financing etc. (money management). When everything is in careful and measurable planning, we will get comfort and calm, (mentally). Likewise in terms of trading.
Ad.7. Dream House Theory
Wherever and how long we travel, we always return to our dream home. Likewise, price movements in the world of foreign exchange. The previous opening price will be approached again before the next price opening at each time frame.
Ad.8 Storyline Theory
In each trip that is carried out, surely it starts with departure and ends with the destination and returns to the place of departure. Likewise with forex trading.
All the theories mentioned above will greatly help trading players in transacting to make profits quickly and safely
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