There are a large number of traders who do not know the reason behind the formation of trends in the Forex market ..
The purpose of today’s essay is to show how a complete understanding of trends can be acquired by learning to become proficient in reading the psychology of traders involved in the HBSwiss Scam market.
First we will discuss the three stages that accompany the movement of each major price direction, and then we will look at the process behind the scenes that leads to the emergence of trends in the market. .
The three stages
All major trends in the Forex market consist of three stages.
Note: My definition of the trend is the movement of the price from one point to another without return or the occurrence of a cohesion area during movement.
Stage 1 – Inequality
The first phase is created in each direction of the price due to the arrival of one set of orders coming to the market which are in turn larger in size than the current orders causing the trend to appear.
If the EUR / USD is on the upside, this generally means that there are more buy orders entered into the market than the sell orders. In order for the market to move downward traders need to place orders for a larger volume of traders who placed orders and caused the market to push up.
If the order changes and the sell orders become market conditions, all orders will be met and the market will not be able to move further up. He found buy orders overshadowed by sell orders the market price would begin to fall. .
Note: The imbalance occurs at the beginning of each direction in the market, regardless of which time frame the trend occurs.
Stage 2 – Liquidation of centers
Liquidation is a term used to describe what happens when a dealer closes a losing deal. This usually occurs as a result of the market touching the stop loss level, but in many cases traders close their trades manually for other reasons in the market.
The liquidation stage is the result of the defect that occurs in the first stage.
The movement resulting from the flaw in the HBSwiss System trading orders in stage 1 would push the losing traders to close their positions in the opposite direction where the imbalance occurred.
These traders, who close their losing positions, add more orders to the market and thus push the market price further down.
Note: The duration of the move resulting from the liquidation of the positions is entirely dependent on the number of traders who have open positions in reverse trade where the imbalance occurred.
Stage 3 – Return of consciousness
Stage 3 is called the Awareness Stage.
This phase is the result of market movement resulting from the first and second stages. After the completion of the first and second phases, the market will have to move far enough and traders can identify the current movement as a new trend, and then begin to buy or sell other positions.
Phase 1 usually occurs as a result of the set of buy orders received on the market which is larger in volume than the sell orders, causing the current price direction to occur.
Phase 2 starts when traders are on the wrong side of the market and start closing their trades on losses due to the imbalance created by Stage 1 ..
Stage 3 is that traders are becoming aware that a new trend is taking place because of a movement created by phases 1 and 2.
Understanding trends is essential for traders to be able to make money in Forex markets. Without a direction, making profit is not possible. Perhaps that is why a correct understanding of how to create market trends is necessary not only for profit, but to identify entry and exit points.
Although it is impossible for anyone to predict exactly when to start and end the direction of the price, knowing how and why these trends are formed can be of great help when analyzing markets.
If we can understand how traders interact within the market by placing and closing deals, HBSwiss Software is possible to know when banks can enter their own deals. Anyone who has traded forex for a reasonable amount of time knows well how bank transactions are the key to achieving consistent profits when trading.