Saturday, February 19, 2011

Learn to analyze 1.

STEP 1
First thing that you need to learn is to recognize the trend!
We have three  different  trends:

UP trend


SIDE way or NO trend


DOWN trend

When you are trying to detect the trend you must watch whole screen as one picture!
You need to practice this on all currency pairs and on all time frames!
When you feel comfortable with trend recognition then you can take STEP 2!


STEP 2
When you recognize the trend then you need to draw support and resistance lines!
Why is that important? It is very important to draw those lines because of trend behavior. UP trend and DOWN trend have three basic phases.  1st is BALANCED FLOW phase, 2nd is ACCELERATION phase, 3hd SLOW DOWN phase.


UP trend ACCELERATION phase 




DOWN trend SLOW DOWN phase





DOWN trend BALANCED FLOW phase






Long therm trend has four phases:
1st ACCUMULATION, 2nd DISTRIBUTION, 3hd ACCELERATION, 4th CONSOLIDATION.


SIDE-WAY trend must have (create)  four essential points before you can draw support and resistance lines!

SIDE-WAY trend (four essential points)


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