What is the most important thing that must be understood for a trader? Well, there really is a hell temen traders argued, any understanding of the system or the way the trading result, which is important. IYA sih, I agree. Just in my opinion, we must have understanding as well as trading systems that can be accounted for. Well, not the intent of the heart make everything so complicated. It's just that, even though the capital we manage our own capital that, nonetheless, if we consider forex trading as a business, then all the decisions that we take should be based on rational considerations.
understand the components of the price movement
OK, back to the issue of fundamental understanding of yesteryear. The crucial thingfor a trader is to understand price movement. Of course from understanding it, thenwill be drawn conclusions about what position to take, how TP and SL. For fundamentalist traders, understand price movement can be done by monitoring news and early predictions about the reaction of the market against such news.
As for trader technicalist, understanding will be of course more price movement refers to the historical data. Of course in accordance with the basic belief that everything happens based on events that had been past and that history always repeats, as well as in the price movement. For a technicalist, in order to understand these price movements, it is necessary to know the components in the price movements as follows:
Trend-inclination to move in one direction
Volatility-the magnitude of periodic fluctuation
Momentum-the level of acceleration and deceleration
Cycle-a tendency to move in a certain cycle pattern of recurring tendencies
Market power-the amount of the transaction supporting these movements
Support and Resistance-the tendency to rise or fall to a certain level and then vice versa, repeatedly
An understanding of the things that is a must to be able to take the right decisions in air-trading. No need to worry about where to get data from or how to process the data we need. It could be said, we really are lucky there are days where all kinds of information from many sources can be processed and presented in real-time so that we can trade with easy plus fun.
We can use the trading platform as well as the help of software for data processing or data problems. You can just click to display indicator you want, which basically present the information about the components of the price movement on the top. No need to sweat about how to make these indicators (except like you who want to make a custom indicator on its own).
The most important is how you understand what is being shown by the indicator. There are countless indicators that you can use to read the components above. For example, to read a trend, you can use the Parabolic SAR, or the family of the Moving Average. For voltilitas and momentum, you can use the MACD, RSI and the like. Forcycle and support-resistant you can use Fibonacci or pivot. And for the strength of the market, you can look directly at candlestick. Simple right? Everything is already available tanks on finger kok.
So, your task is simply to choose and understand aka "communicate" with the indicator, then take the right decision based on your understanding of the data and indicators. By using a strong basis in decision making, whatever results we get, we can capture its benefits. Well, gratitude-gratitude kalo profit. If loss, from there we can take lessons so next time do not reoccur in the same retrieval errors.