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How to Create Your Own Theory on Rate Movements
rokasltu Publicado 14 Ago in #Chart #Theory #Rate #Movement #Period #Statistical9/34
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1. OverviewThere are a lot of theories in FOREX market. You can use various indicators, trade signals, copy others trades, etc. But in every such a case you will use some theory, which will be used by many others. Of course it is great job to choose relevant method and apply it during right conditions. But can you create your own theory? This question arises sooner or later after spending some years in FOREX market.2. Movements prediction method descriptionWhen creating theory for predictions some kind of statistical method could be used. I will assume that if some pair is in the middle of its highs and lows (lets assume analyzing only 10 past years) from statistical point of view it is unlikely that during coming 2-3 years such pair will break highs or lows. Of course it is from statistical point of view as in real world different matters could occur and ruin statistical predictions. But there is no 100% accurate predictions in any case.For this analysis monthly charts will be used.Further on from statistical point of view if we will take shorter period lets say 2 years and look at highs and lows for this period and if rate is somewhere in the middle again once again from statisti…
