Sinusoidal movement in channel, GalaIn 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"
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