keep in mind Price is a comprehensive reflection of all market forces. All the fundamental indicators described above almost immediately find expression in market pricing.
Price movements are trend followers. There are three types of trends: primary, secondary and daily fluctuations. Primary trend: A primary trend remains in effect until definitive signals prove otherwise. Secondary trend: A secondary trend reacts against the primary trend, and is a temporary phenomenon. In a bull market, a secondary trend is called a correction; in a bear market secondary trends are sometimes called reaction rallies. A secondary trend can retrace up to 2/3 (usually 50%) towards the starting point of the trend before resuming its primary course. Daily fluctuations: There is very little opportunity for forecasting daily fluctuations. Overemphasis on daily fluctuations can easily lead to loss.Primary trends are composed of three stages: accumulation/distribution, run-up/run-down and irrational pessimism/optimism.


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