Re: ACTION ZONE:ORIGINAL MATRIX

#41
amdudus wrote:
Fri Aug 27, 2021 12:48 am
In fact, 3D Pattern is much more common than we think, but not all of us are interested.
Sure it is a nice pattern and useful among the other patterns. example
CADJPYDaily.png


Re: ACTION ZONE:ORIGINAL MATRIX

#42
amdudus wrote:
Fri Aug 27, 2021 12:48 am
In fact, 3D Pattern is much more common than we think, but not all of us are interested.
Image

Image
Hello amdudus,
that´s interesting, how do you define 3D Pattern ?
What´s the meaning of 3D Pattern ?

Thank you in advance.


Re: ACTION ZONE:ORIGINAL MATRIX

#48
Market memory
When studying the patterns of price behavior of exchange instruments or Forex currency pairs, episodes of history repeating are noticeable. The instrument moves to a certain level for a long time, and then forms a reversal of the global trend. This often happens at the same price levels several times during the observation period.
0.png

Re: ACTION ZONE:ORIGINAL MATRIX

#49
Definition of market memory
Market memory is the property of repeating or imitating the nature of the price movement that was observed earlier. A similar motivation is used by adherents of technical analysis with the thesis “history repeats itself.”
In reality, market memory is a set of prejudices inherent in traders that the market remembers all significant price movements and reversals. This is partly true, but it is not the market that remembers them, but individual traders, including institutional ones. Seeing the possibility of making large deals, collecting a position and realizing it, they move the instrument in the right direction.
A set of positions occurs at strong levels, more often at mirror or extreme levels. These price points are remembered by many traders as places for trend reversals or significant breakouts in the past. Therefore, being the places of accumulation of Limit orders, they are considered the strongest levels. This confirms that traders hope to repeat the past situation and have created such a concept as the memory of the Forex market.
Its definition is abstract, but the phenomenon has two important manifestations.
1. The first is the similarity or even uniformity of reversal or trend continuation patterns in some markets.
2. The second is the formation of the principles of market mechanics: movement from one level to another, breaking through it or fighting off it. This is the only thing that the market remembers, and it is easy to notice on the candlestick chart in the form of the above-mentioned reversal patterns, which generally look the same.
The market remembers the structures of these patterns, and they are repeated only because the scenarios of the buyer's struggle with the seller very few. As a result, some variations of reversal patterns are noticeable in your terminal: Double Top, Head and Shoulders, reversal levels, false breakouts, and others. This is the memory of the Forex market, which, with some reservations, is also characteristic of the stock market.

Re: ACTION ZONE:ORIGINAL MATRIX

#50
Memory and mechanics of the market
Above, when mentioning the manifestations of market memory, we considered such a concept as the mechanics of the market. This is a generalized term that characterizes the set of repeating patterns by which the price changes. The main types of market mechanics are: trend, correction, reversal, level breakout and pullback. The instrument moves in trends with inconsistent corrections depending on how quickly capital is added and how intensively traders who fix their profits exit the trade.
Breakout of the resistance level is an indicator of high activity of buyers, which confirms the strength of an uptrend. A rebound from the resistance level indicates a lack of buyer's efforts, which indicates the predominance of limit sellers. At the same time, both the breakout and the reversal have a similar profile on the price chart. Therefore, the stock and currency market is a place where the mechanics of the market rather than its memory work.
History will continue to repeat itself only due to the fact that capital in the form of limit orders will accumulate at strong levels. But this does not mean that the market really remembers it and will take it into account next time. It is moved by traders of various "caliber", and only because of this the price of the instrument changes, trading takes place.


  1. Similar Topics

    1. Genesis Matrix

      16 Replies 2610 Views

      by constbln, Thu Apr 01, 2021 6:22 am in Trading Systems

      16 Replies
      2610 Views
    2. 2 Replies
      194 Views
    3. Price Action Dashboards

      11 Replies 6356 Views

      by MayaxatL, Sun Nov 15, 2020 8:17 am in Trading Systems

      11 Replies
      6356 Views

Return to “Trading Systems”

Users viewing this forum: bobbyzed, charli, CommonCrawl [Bot], dansmol, Gari369, kowal81, Mrs.Watanabe, Sogou [Bot], stond, sudhindragk, xard777 and 20 guests