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Frankly speaking with no reasonable doubt,majority loose in forex trading.i have heard many traders say,the fortune of usd lies in the crude oil price.that may be right but,does that have to push u to place a buy or sell order on usd.see,no matter what u say,no matter the fundamentals in the market,the market as being programmed the way it is supposed to respond.i might not be a genius in programming but I can tell u how this forex market works.see,lets get this clearly,technical analysis or no technical analysis,fundamentals e.t.c does not justifies the way prices move.look, price will continue to behave the way it behaves with no direct proportion with human analysis.i wish traders can pinpoint the logic behind what I am saying.i told a couple of my friends that,the banks are getting richer and the average trader are getting poorer.i can tell u with no reasonable doubt that,out of every 100 private traders,90 will loose their money while 10 will remain but for the banks,for every 100,98 remains and 2 goes away.look at the margin btw these set of traders.if u can think critically,u will find out that,volume works in favour of the banks compared to that of a private trader.yes,yes,yes------that is why I continue to tell traders that,till trading ends,there will never be anything called an holy-grail system,simply bcs,volume drives price in relation to its momentum regardless of technical and fundamental analysis.that is why u continue to find out that,in some cases,news will favour a currency and at the end of the day,it will move the either way.a lot of traders rushed into this market and today,they are running out of the market.this is bcs,they don’t still know,why price behaves the way it behaves.see,once u get the logic behind this,I believe with great confidence that,u will always trade without loosing ur capital.the logic are very simple to apply but u need to answer this questions first-----------------
1.)why do price behave the way it behaves……..
2.)why are more traders loosing than gaining…..
4.)what is the logic behind price movement--------------- I will provide answers to some of these questions now---------------
Example 1--------lets assume eur/usd moved 60 pips in a day.using the daily chart,check the volume u see and calculate its value.note,the volume u see on a candle signifies the total time price changes with a period of full formation.see,mathematics can never be wrong.okay,assuming the total volume was 450,do u think it is possible for u to know the direction of price for a period either days,weeks months e.t.c…..yes and I mean yes,though I will still patent the formular but before then,I want interested traders to try out the logic on their own….. DIVIDE THE VOLUME BY THE TOTAL PRICE INTEREST POINT(PIP)………AFTER THAT,WRITE OUT UR ANSWER AND ELIMINATE ANY DECIMAL FIGURES U ENCOUNTER—THIRDLY,COMPARE UR ANSWER WITH THE VOLUME OF THAT CANDLE U CALCULATED,IF IT FALLS,CHECK THE DIFFERENCE,IF IT DECLINES ,COMPARE THE VALUE WITH VOLUME OF THE CANDLE B4 THE ACTUAL VOLUME,IF IT THEN DECREASES,IT MEANS,FOR THE NEXT TWO TRADING DAYS,PRICE WILL BE BEARISH.SEE NO MATTER WHAT,PRICE MOVES IN DIRECTION OF VOLUME.THAT IS JUST THE LOGIC BEHIND PRICE BEHAVIOUR.FEEL FREE TO SEND ME COMMENTS-----------------------NO MATTER UR ANALYSIS,VOLUME MOMENTUM IS D HOLY GRAIL OF DETERMINIG HOW PRICE WILL MOVE IN A PERIOD IRRESPECTIVE OF THE NEWS.I DISCOVERED IT AND WITH MY LITTLE CAPITAL,I AM GROWING------VOLUME CAN NEVER BE WRONG.PREVIOUS VOLUME DATAS,WILL AFFECT UPCOMING PRICE MOVEMENTS.
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