depth Psychological Perspective On Market Cycles In The Currency Trading Market
cheap moncler jackets sale Every trading strategy, robot, system or indicator you use was designed to exploit, and by exploit I mean cheap moncler jackets sale
moncler outlet uk perform optimally,within some particular market cycle whether you know it not. The market as we know it is divided into four cycles or phases which I mention below; moncler outlet uk
moncler outlet store Accumulation Market moncler outlet Cycle (The Wait and See Mindset) moncler sale Transition/Distribution Market Cycle (The Profit Taking Mindset/Re Entry Gear) Mark Up/ Bullish Market Cycle (The Greed Mindset) Mark Down/Bearish Market Cycle (The Fear Mindset) moncler outlet store
moncler sale outlet I use market cycles primarily for gauging external market psychology which is just another fancy way of saying interpreting traders valuation of currency prices as revealed through price action with bulls crowned winners as currency charts trend higher, bears lifting cheap moncler jackets the imaginary trophy on lower trending charts and some slight degree of equilibrium when bulls and bears agree on currency prices, as depicted by a range bound market. moncler sale outlet
moncler outlet Accumulation Market Cycle (The Wait and See Mindset) moncler outlet
moncler factory outlet The Accumulation market cycle represents a market condition where there’s a kind of balance between buyers and sellers. This is more often the case when traders wait in expectation of the reaction to some major news or buy moncler jackets political event. This balance resulting from the uncertainty of traders is usually depicted by a sluggish range bound price action on the currency charts. moncler factory outlet
Savvy traders take advantage of the accumulation market cycle with range bound trading strategies, where they get to establish sort of a price area/zone of support and/or resistance, shorting at resistance levels and buying at support levels inside the range.
I call these price areas/zones clouds because they account for the variance allowing price some leeway which could just be a couple of pips, to cheap moncler coats move above or below any particular support or resistance level before confirming or disproving the breach of a support/resistance level in which case price just moves right back into its previous trading range.
Say price breaches moncler mens jackets a major psychological resistance level on the EURUSD chart, the 1.3300 price level only to travel to about 1.3318 before reversing back into the range, an ill advised trader might take the initial 1.3300 resistance breach as a confirmation that price will only continue traveling higher as some moncler sale outlet forex trading strategy must have instructed him leaving him in the lurk when prices slumps back into the trading range below the 1.3300 resistance price level.
Think of the narrowing price action another characteristic of the accumulation market cycle as you would a spiral spring. What happens when you force the ends of a spiral spring tightly together? It stretches back violently when you release it right? You betcha!
moncler sale The constricting price action in the accumulation market cycle is usually followed by a surge in volatility after the facts or figures of the news/political becomes common knowledge. placing buy and sell pending monlcer down jackets orders just a few pips above or below the support/resistance price levels marking the price range respectively). moncler sale
Transition/Distribution (The Profit Taking Mindset/Re Entry Gear)
moncler jackets outlet The transition market cycle is one caused by the trader’s profit taking activity. If you got into a buy trade on the euro at 1.3200 you might want to take some profits off the table at 1.3250 price level or even close the trade completely. moncler jackets outlet
cheap moncler This type of thinking is one that the majority of long traders on the euro like yourself would probably have, since a buy trade was what you had to execute to get into the market in the first place an opposite order which is a sell will be required to close this position with either a profit or loss with respect to the current position of price. cheap moncler
If the traders who opened a long position at the 1.3200 unanimously set their profit targets at the 1.3250 price level, a flood of sell orders will be stacked at 1.3250 since a sell is what is required to close the buy trading position taking their profits off the table.
cheap moncler coats There’s always has to be two sides before a trade can be successfully matched or executed, for every buy order there has to be a sell. You might have a very good reason to buy or sell a currency but don’t forget that the person on the other side of the trade is also in this business to make money, they might probably have a better reason to be at the opposite end of your order, never forget this, because stick to you stops cheap moncler sale minimizing moncler outlet online your risk considerably. cheap moncler coats
cheap moncler outlet This profit taking causes what we see as retracements or corrections of major price moves on the forex trading chartsCorrections or retracements simply tells us that traders are taking some profits off the table, if this is followed by some continuation chart pattern more traders will see this on the charts and probably follow along with the current established trend buying into the market from the traders who entered the position earlier. cheap moncler outlet
This is the reason behind the 3rd wave in the Elliot wave analysis is usually longer than the 1st and the 5th, let me explain.
The first leg of any move up is moncler outlet store subject to partial disregard or unbelief, some traders are likely to see the indications of price reversal but would ignore it when it actually occurs as is always the case with the transition market cycle, some traders will stay on the sidelines waiting to see a very clear confirmation of a reversal before joining in.
Thus, more traders are likely going to see https://www.monclerdownjacket.biz this confirmation before they buy or sell, when there’s high demand in the market prices shoot up, the evidence to this can be seen on charts with Elliot waves spotted on them, you’ll almost always find the height of the 3rd valid Elliot wave to be longer than all the other numbered and lettered Elliot waves.
The chart patterns cheap moncler outlet you must have learnt in your beginner forex trading lessons are gems you can only be thankful for coming across, make sure you don’t just dump them for some complicated forex trading system or software thinking they’re just beginner stuff, you have to properly understand the forex trading basics before doing anything else.
moncler outlet online The Fibonacci retracement tool helps us when identifying where to jump right into the market and join the continuation or newly reversed trend, the psychology being that sell orders are stacked at some particular levels by traders to take some profits off the table as more and more profit taking happens price fall. moncler outlet online
Most inexperienced traders who probably got into the move late end up taking the profit taking orders of the more experienced trader while others simply close the trade because it was in 30 pips profit not so long ago and now it’s down moncler outlet sale to 12 pips in losses the moment it goes up to 0 or probably 1 or 2 pips on the positive side again they close the order for fear of losing and not rational or logical analysis.
The Accumulation part refers to the accumulation or stacking of orders resulting moncler outlet from pending orders that make for a successful price correction before the market continues its move up or down.
moncler outlet jackets Mark Up/ Bullish Market Cycle (The Greed Mindset) moncler outlet jackets
moncler outlet sale The Mark up market cycle refers to that market condition where traders are driven by greed, call it any fancy name like risk appetite, it still doesn’t change what it really is, prices move higher as more and more traders buy. moncler outlet sale
Traders, (and by traders I mean Pro Traders and not canned set up traders), would only buy when they have some solid fundamentals and technical indication supporting their bullish bias, this in turn creates a higher demand for the currency, stock or commodity in question resulting in ever increasing prices.
moncler jacket sale If the Transition market cycle accounts for price reversal which was successful confirmed by the first leg of extension, the mark up and mark down market cycles sort of nurtures this young price moves to maturity all through infancy moncler jacket sale.