Shaper Chart Patterns
The graphics because of movement and form is what interests trader had spline interest flows are intact and normal, then either the trend or downward trend will form a model trend of normal like the series-3
so what if the interest does not flow in their entirety from the beginning to the end? What form his model tendency?
When interest flows normally and formed a trend model, the trend in the model are shorter graphical model that has a different shape due to changes in the amount of interest .
This means that from the beginning to the end of the trend that forms a chart pattern trend, but the chart pattern trend is also composed of several different graphical models due to changes in interest / interest phase. This means that the trend is actually a series of graphical models which tend in the same direction.
Conversely, when interest does not normally circulates then the model courses trend graphs that form a different shape to normal with the units constituting different graphical models constituent formations interest flows are normal table.
therefore it proves there are various forms of graphs?
True. Whether due to changes in interest or because of other factors. What are the factors? note the following picture:
At first, since the beginning of the implementation of the floating exchange rate system, which forms the structure diagram of the supply and pure demand to meet the needs of merchants. But as the development with many traders to speculate for profit, graphics final movement often influenced the action of speculators traders.
For reasons of profit or maintain the advantage gained in the action of the action of speculators often based trader by greed and fear. If fear and greed that is too much, the stock price impact will move uncontrollably.
If the price moves out of control, for example, be too high or too low, and move beyond the reasonable limits so of course it would be detrimental to other parts interested, contonya are exporters and importers.
Why?
take, for example in Indonesia there are two companies that as a finished product importers and other commodity exporters. Partners of both companies come from abroad. Today, importers and exporters undertake a transaction valued at $ 1 million to each partner has agreed that payment is due next month. With the current exchange rate of $ 1 = 10,000, the value of the goods to be exported and imported currently around Rp. 10 billion dollars.
A month later, he arrived was time for the settlement of transactions. But unfortunately, in the space of a month that the exchange rate changed dramatically.
For example, the exchange rate has changed to $ 1 = Rp 15,000
$ value is too high, it would be advantageous for exporters who receive payment in the form of dollars when the $ 1 million he received in kurskan value of rupiah to Rp 15 billion, which means that exporters get a higher number than the value of the transaction initial.
But the dollar is too high, it is harmful for importers who must make payments in dollars. Importers must provide more rupiah (Rp 15 billion), which is equivalent to $ 1 million. In fact, if the payment is made there are importers months have only to spend only Rp 10 billion. So if the transaction was done, it will cause the loss of the importer for imported goods if sold to value country has not necessarily reached Rp 15 billion.
Similarly, if exchange rate changes of $ 1 = Rp 10,000, - $ 1 = Rp 5,000, -
the value of dollar that is too low is favorable importers should provide some rupees (5 billion Rp) to pay a dollar to $ 1 million, but the dollar amount too low it hurts exporters who receive little rupees ( Rp 5 billion) if the $ 1 million he received was traded in rupees. If the transaction is still to have caused losses to exporters.
import transaction export Genesis as it also occurs in other countries, so you can imagine stout all companies in this world that make payments such that each side will try to keep the value of the currency is not too high and not too low, including by the government to protect the interests of its citizens.
care was made to the exchange rate is in the range of the agreed price and can be accepted as a reasonable price by the respective parties also are mutual or equal quite equal .
Values upper side and lower side of the range of the agreed price, which then becomes reasonable limits that can be tolerated which then limits the movement of the market to form another graphic pattern . With kept prices remain on a certain range, then every time the price of trying to go out of bounds, the price will be returned within the range of the fair.
The Genesis prices continue to go back to the fork in the fair will continue to occur until there are events that really force level that limits can be breached. For example, because the payment due date arrived, which if not paid will only lead to greater losses due to fines or greater value that losses are incurred as a result of exchange.
In these moments, even if prices are already beyond the limit, the price will continue to move away from the limit because of the strength of interest is too large because of the stress. From this we can see again that the interest was returned array excite and trained graphic pattern to another.
From the description above, we can see that this makes the chart has a pattern shape was not only the supply and demand, but also fear, greed and the limit price is maintained
so in essence the graph has a different shape of the patterns that are caused by :.
1. The strength of demand and supply comes from the interest
2. Fear and greed of traders
3. limits that maintain reasonable prices
the electricity demand and supply as well as fear and greed are basically going to do the movements right price the limits will distort the price evolution of prices. So which direction the next price determined by the strength of demand / supply and the presence or absence of fear / greed, as well as whether or not a strong barrier that the price reflects the price .
Therefore, in determining the direction following price we've seen the power that is within the graphic pattern itself, and then calculate the opposite barrier him.
in the next chapter, we will recognize chart patterns due to the size of the strengths and chart patterns due to the strength of limiting the price.
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