THE MARKET HAS A MEMORY

THE MARKET HAS A MEMORY

The market never forgets, or rather have the memories. In naked eye you clever look the stage-the stage of support and resistance which proves this. The market never forget the peristiwats of the begin of a significlevert movement. How many times have you observe price movement experienced a true, right, validion and back again to a stage or area where the movement begined?

Sometimes prices move ranging around these stages before continuing or reverses direction. This event keeps recurring in the hitale, narrative the movement of any currency pair, and if you understand why this is the case you will not have trouble again in anticipation of market price movements.

Forex Trading Is Not Absolutely

Forex trading is approxifriendly probability, so it's not love the measure or calculate something definite and absolute. However, the market will always remember any significlevert movement. This is a high probability, eski, not always the case. It's only, merely, solely a high probability, could serve as an assumption.

Clear evidence of the high probability that looks at the formation of the bar (cleverdlestick) or formation of price movement (price behaveion) happening. Price behaveion is aof the direction of movement. The combination of the assumption and the formation of price behaveion clever give a clear hint approxifriendly price movements and trading s is with high probability.

The following example on chart daily DAX30 stock index (Microbeany):

A key resistance stage (key resistance) formed between 9735.00 to 9700.00. The area between a key resistance stage and price movements toward the bottom are significlevert in this case referred to as the ' event ' area. Trading s should not arrise at the stage of the key, but it could also be at the event area. Love in this example a pin bar reversal lookms form on the event area which is ato sell.

After 12 days back formed pin bar reversal on the event area and the price back dindividuals. This demonstrates that the market is never forgotten and always merespek key stages and also the event area was formed. If the trader has understand this then he will be able to do the anticipation when formed the s at key stages as well as event areas.

Entrybased on price behaveion that arrises at the stage of resistance or support and event areas usually safer and often true, right, valid. This is because the State was confirmed by the memories market.

Area ' Memories Of The Market '

The use of a reference event area as the area of the ' market ' memories clever be preceded by the formation of the price of a sure behaveion (such as pin bars) or without the formation of price behaveion as a trigger for entry, as in the case of EUR/USD for the following:

Pin the first bar on the left to form the event's area with honor to the strong price discount that follows as demonstraten on the chart above trading. From this we tell that the area shut to the pin bar is an important area that will provide a further test on rebehaveion if the price movement of return nearing the area. The price will test the stage on this area each time are at a stage shut to the event area.

PIN bar to 2 that arrisered on February 27, clearly hinting at a buy . Bemiddles market sentiment tfinishs to be buying love looks at a bullish cleverdlestick bar (wbeat, smacke), pin bar are also experiencing rejection (rejection) in general areas of the event also called false break. The movement of the uptrfinish that kuatpun arrisered afterwards.

The market has always given the stage on this area of the event as a significlevert stage in determining the direction of price movement. Furthermore the price back dindividuals to rectified on April 4, back to the stage at the event. As demonstraten in the image again bullish price movement after experiencing the rejection on the stage ' the market ' regatherion.

The next case is moving prices ranging before forming event area, and always test the stage on this area before determining the direction of movement is significlevert.


The key stage of GBP/USD at 1.6667 strong dindividualstrfinish movement and afterwards (begining January 24) demonstrates the stage of the market will be remembered. Before the market moves in a sure range (ranging) before long-tailed terbentul pin bar (long tail pin bar) on 13 March.price behaveion suggests this reversal movement immediately trace by price discounts and simultaneously form the event area around the stage. Note also the acceleration of price movements as prices broke through the lowest stage pin bar.

Look again prices dindividuals while on the stage prior to pass through. When price movement again rectified to the event area, a rejection pin bar back makes prices move uptrfinish. As in the previous case the market given the stage on the area of the event, and we clever use it as a reference. The example above demonstrates the condition of the consolidation

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