Choose a few market participants and be prepared, because market participation evokes strong emotions. Many traders have great similarities with each other. “Bulls” and “Bears” are jealous and afraid.
Due to the envy of buyers and the fear of traders the market is rising. “Bulls” like to buy cheap things. Confident “bulls” are watching the moment of price increases and do not use the opportunity of low supply. The growth goes on until the “bulls” show a greed for money to make a deal with the sellers. The level of growth depends on the well-being of the participants. When buyers are strong, sellers increase slowly, and when they gain more power, they increase rapidly. If the “bulls” are strong and fearful, technical analysis can determine the outcome.
The bear seller falls into the trap, and the trade loses. But when they try to defend their positions, the rise is vertical. Then the trend works because of “bearish” greed and “bullish” fear. “Bears” like to sell from above, and they can sell during a landslide. Frightened buyers buy currency that falls in price. If sellers meet such requirements and sell at the bid price, they will have a downturn.
When the “bull’s” profit decreases, there are losses and they are sold at any price. They want to reduce prices and losses. The market breakdown can be very fast.
Everyone has free will, and his actions can be unpredictable. It is easier to analyze group behavior. When you analyze the market, you also analyze behavior. You have to identify the movement of the crowd and the change in movement.
The longer the bull market holds the field, the more technical analysts ignore the dangerous symptoms and miss the changing trends. The longer the bear market is headed, the more analysts support the “bear” and ignore the “bulls”. Therefore it is better to lay out some plan of the analysis of the market.
At the conclusion of the transaction brokers-traders use various tools to determine the characteristics and qualities that take into account the individual nature of man and the emotions of group members. They observe the group’s ability to withstand a previous level of support.
Choosing to trade foreign currency is not easy, and you do not need to rush into a decision. Follow some general tips and use all possible tools to get any information about forex trading.