In this post, I am not referring to physics and math equations and probabilities, I'm just saying that the Display method of the probability of a numerical event is between 0 and 1,
and just for easy recall in tutorials, I consider a number between 0 and 100.
0 indicates impossibility and we know that 100 indicates certainty.
Therefore, will explain this price movement detection method in a simple and concise way.
Consider a few general rules:
1- The price chart in a channel always tends to approach and return to the middle line of the channel.
This is true for all types of the uptrend, downtrend, and neutral channels.
2- Sinusoidal movement is dynamic (of course, I mean in the financial market) and the range of movement, speed, and volume can vary.
3- the price chart after hitting the middle line, faces 3 possibilities.
Usually, we consider these possibilities as 33 - 33 - 33 %
3-1- Reversal (pull-back ) to the previous direction.
3-2- Crossing the middle line and moving to hit the other line of the channel.
3-3- The price chart attached to the middle line of the channel continues to move.
(I will publish the third point and its reasons in another post because this one is a complete and long tutorial for himself)
4- usually In uptrend and downtrend channels, the movement angle of 45 degrees is the most appropriate movement angle to create sinusoidal movements (consider between 30 and 50 degrees).
And the 5:
"Keep this last point in mind in all the training you read and learn from different people.
From great masters in financial market analysis to an ordinary person like me "
** No theory, method of analysis, or analysis is ever 100% correct.
In probabilities, we always have the nearest states, which means that when we say 100 for the certainty of occurrence,
A probability may be up to 99.999999, but it is NOT 100%.
So remember that there is always a possibility of a movement or change contrary to our analysis, rules, or imagination, and
"This is one of the main reasons for placing a Stop-loss limit in trading"
-----------------------------------
Please write any advice or suggestions.
Dear friends, request any cryptocurrency pair, currencies pair for forex, and any index that you want to be analyzed and ask any questions.
Thanks for your attention
and just for easy recall in tutorials, I consider a number between 0 and 100.
0 indicates impossibility and we know that 100 indicates certainty.
Therefore, will explain this price movement detection method in a simple and concise way.
Consider a few general rules:
1- The price chart in a channel always tends to approach and return to the middle line of the channel.
This is true for all types of the uptrend, downtrend, and neutral channels.
2- Sinusoidal movement is dynamic (of course, I mean in the financial market) and the range of movement, speed, and volume can vary.
3- the price chart after hitting the middle line, faces 3 possibilities.
Usually, we consider these possibilities as 33 - 33 - 33 %
3-1- Reversal (pull-back ) to the previous direction.
3-2- Crossing the middle line and moving to hit the other line of the channel.
3-3- The price chart attached to the middle line of the channel continues to move.
(I will publish the third point and its reasons in another post because this one is a complete and long tutorial for himself)
4- usually In uptrend and downtrend channels, the movement angle of 45 degrees is the most appropriate movement angle to create sinusoidal movements (consider between 30 and 50 degrees).
And the 5:
"Keep this last point in mind in all the training you read and learn from different people.
From great masters in financial market analysis to an ordinary person like me "
** No theory, method of analysis, or analysis is ever 100% correct.
In probabilities, we always have the nearest states, which means that when we say 100 for the certainty of occurrence,
A probability may be up to 99.999999, but it is NOT 100%.
So remember that there is always a possibility of a movement or change contrary to our analysis, rules, or imagination, and
"This is one of the main reasons for placing a Stop-loss limit in trading"
-----------------------------------
Please write any advice or suggestions.
Dear friends, request any cryptocurrency pair, currencies pair for forex, and any index that you want to be analyzed and ask any questions.
Thanks for your attention