Why this price changed on this way? - page 3
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Why are you so sure that are a lot and not just few? ;-)
Anyway, why don't ask why as a generic and abstract question? Because technical analysis can't tell you anything about?
Sorry but I don't understand. "Why price changed on this way" isn't a generic or an abstract question in my view. Can you explain what you mean ?
Sorry, I will try explain better what I mean.
My idea is explore the cause-and-effect relationships underlying price changes, so the only thing I'm sure about (the truth) is the effect. And the effect is price change, right?
But you can answer: because people are buying.
So, in this sense, we ask again: and why people are buying? This is the next level of the abstraction, and probably more questions will lead to the cause, whatever it really is.
Sorry, I will try explain better what I mean.
My idea is explore the cause-and-effect relationships underlying price changes, so the only thing I'm sure about (the truth) is the effect. And the effect is price change, right?
But you can answer: because people are buying.
So, in this sense, we ask again: and why people are buying? This is the next level of the abstraction, and probably more questions will lead to the cause, whatever it really is.
It's more clear. In the example it's : because the news. When there is no news it's for whatever reason, who cares ?
It's not how I understood your topic at first, I thought it was more about technique and not about psychology or philosophy. But it's your topic
What I mean by technique is the following :
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EURUSD, H1, 2014.01.23
Alpari, MetaTrader 5, Demo
News at 08:00 GMT, following by a big rise of the price. But why all a sudden price begin to
why falling? it is correction
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Market Condition Evaluation based on standard indicators in Metatrader 5
newdigital, 2013.01.22 14:18
So, just to summarize few pages on this topic onto 1 comment:
1. Trend following
1.1. Primary trend
- Uptrend (bullish)
- Downtrend (bearish)
1.2. Secondary trend.
- Correction
- Bear Market Rally
2. Overbough/oversold ('top-and-bottom')
3. Breakout
There are some more: flat (or non-trading market condition), and ranging market condition. Some people say that flat and ranging are part of secondary trend together with correction and bear market rally; the other people are talking about flat and ranging as separated market condition which can be under item #4 (flat) and item #5 (ranging). I think, the true may be the following: flat and ranging are the part of secondary trend under trend following. If yes so the resultant classification may be the following:
why falling? it is correction
I understood but it is correction :
"Price is rising after the news, but why all a sudden price is falling 2 hours, and after continue to rise" = correction (secondary trend). I mean - this 2 hours is correction of the price movement.
Opposite case (price is falling but start to rising for some time, and after continue to fall) - rally.
Correction and rally are official terms describing such the cases
I understood but it is correction :
"Price is rising after the news, but why all a sudden price is falling 2 hours, and after continue to rise" = correction (secondary trend). I mean - this 2 hours is correction of the price movement.
Opposite case (price is falling but start to rising for some time, and after continue to fall) - rally.
Correction and rally are official terms describing such the cases
Why? It may be the following:
Anyway, the people are moving the price (in any meaning).
It may be interesting situation :) we know that actual data for ecomonic news events are published on some official websites. So, the price is started to be moved in the time of this publishing (actual data is taked from official websites by all economic calendars).
But there are some guys ... who are publishing/calculating those data ... and they exactly know actual values 10 or 20 seconds before publishing. So, they can easy place buy or sell position based on this confidential information. Name of those guys are insiders - they are the best traders in the world :)
It is joke but as far as I know - there are some laws against such insiders in most of the countries.
Why? It may be the following:
Anyway, the people are moving the price (in any meaning).
Great point, we are not talking just about buyers, but sellers that are doing that after the news.
Are these traders that closed their positions/trades right now using news fundamental? Or they don't care about this?
In both cases, when do they entered the market and why?