Trends exist until it is not broken (Forex) ~ theater of dreams

Monday, February 28, 2011

Trends exist until it is not broken (Forex)

Typical price movement is in a certain period of price movements continue to shape the pattern of trends and conditions will change if the trend reversal signal is experiencing a confirmation. A characteristic that often happens before experiencing a reversal or continuation is the existence of price consolidation or trading range, which is a condition in which prices have a balance due to the pressure against the price. If the price support or resistance in the trend has been penetrated, this is where the price will continue whether it suffered a reversal or continuation price.
 
After the price support or resistance is penetrated, the price will change from the movement of the previous trend. Example below is a graph that experienced a change in trend rise later changed to trend down. Sell signals occur when the position T2 to T3 level or no higher than the T1 to T2.
Here is a chart display trend changes:

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