From the previous material as the third thing that makes the chart patterns are the limits which keep the prices are reasonable.
the rise of the price range is due to secure the parties concerned that a fixed price is in the range that is acceptable to all parties.
price ceiling is called with resistance or hinder price rises, as it reflects the price down. While the price limits of background is called with Support or raise prices because it reflects the price up.
But while support and resistance are limited, but that does not mean support for this resistance is not broken, but for a while not to be passed to first, the existence of a condition that is inappropriate or conditions as the force that the price level is maintained, it must be changed.
per well, when the price reaches the barrier, chances occur penetration or thinking , depending on the strength of the limits hold power table.
very low limiting views to reflect the graphic with success and chart how rebounded points. The more graphics that bounces when it hits that level, and reflections are relatively far away means that the robust limit. Over the limit means more and more difficult to penetrate, therefore, only great power that could penetrate.
Due to the differences in the strength of the barrier will form patterns table:
1. the model of direct penetration
This trend may occur if the existing interest in the graph is quite large. A break of this limit is called the Breakout or breaking the barrier.
Because at the time of the great breakout force graph, then the breakout feature is the strong and long candletsik bands Bollinger are widening.
2. The reflectivity pattern
Lead reflectivity pattern back right price kerentang. The reflection pattern in the second, namely:
- total reflection pattern, which means the price reflected in total. More power rating table before bouncing distance of thinking further.
- The reflectivity of any pattern, which means the price first and then make a lot closer to the line of retirement penetration demarcation. Market conditions back, we could call correction . After correction, the market will move in the direction of the previous statement.
Because prices will move in the direction of the previous one, then at the end of the correction will appear widening interest marked by the growing body of the candlestick.
given the existence of this barrier, we come to know that the levels specified price will breakout pemantulam or corrections (back away).
The interesting thing now is an interest in the existing chart is very strong, but many of the barrier in front of him. So what happens is always first retirement as if to leave, then make the penetration of repulsion that were near the fence. If something as described, it forms a pattern like a ladder.
The reason for this scale is one of the leading models in the market. Because the only logical, there will be no price moves perpendicular but to achieve a certain level of price movements graph biased because the graph shown in negotiation platform was cut by a period (of time limit). Also stair pattern is also in line with the wave of elliot law. Although trading elliot wave theory was based purely psykologi.
So if when analyzing our views after the price rise, then fall, or vice versa, you must understand that it is something that is just because it's like that's supposed to be. Or even if we expect a rise in prices, we can expect the prices to fall first.
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