Laws of the market forex

Knowledge of the laws of the forex market more efficiently to analyze the situation and make more accurate predictions on future developments. There is a fundamental parameter to consider in real life, it's about them today will be discussed. The laws of the trend. • Power - the weaker trend, the higher the possibility of a turn in the opposite direction. • Duration - the price can not keep moving up, is sure to be a rollback or reversal, while the trend is seen, the longer the price moves in one direction, the greater the possibility of its reversal. • Rollback - every dramatic trend movement always rollback, with its value almost always corresponds to the first movement, but it is not equal to it. • The trend, market laws - in excess of demand over supply is price rise, and vice versa, if the supply of currency more than the current market demand - this leads to a drop in prices. • Volume - the volume of trading on a particular currency pair is directly dependent probability of trend reversal, with a decrease in volume increases the likelihood of a reversal. Trade laws. • Trading with the trend is always more profitable and less unprofitable than trading against price movements. • The first to react to the movement of prices and get more profit, those who trade using fundamental methods of analysis of the market, the second traders use technical analysis and the latest in the market are those who follow the charts visually. • Effective trading in forex, involves not only the maximum profit, but also the reduction of possible losses. Basic aspects. • The greater the leverage, the greater the profit and risk trade. • The size of the deposit significantly affect the size of profits. • When trading should be aware that forex huge role played by the psychological factor, sometimes it is, it leads to the greatest loss. • Trade must be limited strictly to the hours worked on the plan, spontaneous decisions almost always lead to losses. The main law of forex - price moves in one direction only certain promizhutok time, always for growth should fall. Trading in the foreign exchange market is speculative, so the players playing on the increase, and the other half on the price drop, which causes permanent changes in exchange rates. The winner is the one who knows which way the game is played, it is used for this purpose different tools of technical analysis.