The forex market is always moving up and down dynamically each day. Why dynamic? Because the up and down movement of the uncertain rules. But has it ever occurred, it does that make the market so dynamic? There is an interesting fact that is called "momentum". According to www (dot) kamusbahasaindonesia (dot) org, one of the sense of momentum was the right moment. Appropriate for what? Of course to move faster (in the context of forex).
Accelerator pricing factors
The faster the movement we can see or feel if we're trading in front of the computer. Momentum-momentum which continuously gives the "fuel" for the market to begin to move faster or increase speed is going on. OK, we just try to identify some of the halyang we can easily observe during us trading.
This is usually related to a news release. The context can be diverse, ranging from news coverage about the amount of labor, unemployment, economic growth rates and interest rates as well as the level of inflation. The aspects related to the condition of a country's economy directly. If one of the conditions in the above data changes then the potential to influence the exchange rate of the currency of a country would quickly occur.
There is also an additional factor that is still categorized as other fundamental momentum i.e. condition of war, natural disasters and political conflicts. Specifically for direct related fundamental is usually already there is a fixed schedule every week or month. At the time of the hour news release arrived, then through the help display graphics for trade, we can observe how the price movement is experiencing accelerated the speed and volume that exceeds the average. All parties involved or interested parties such as retail traders, institutional traders, speculators, and the central bank began fighting over position. Can imagine how hectic market because full of sellers and buyers.
This is the most interesting part. Why? Because in this momentum is usually characterized by the formation of a pattern or the achievement of a certain visual conditions. The use of the tools in the form of a graph into a must for identifying the formation of technical momentum. This of course is not a complicated issue, because it has become the standard that the application used to display charts list the trading as a menu.
Graphic example can be taken from the appearance of the pattern "doji" when the market was entering the momentum uncertainty. The pattern reflects the power of the buyers and sellers are in a balanced condition. After the balance is formed usually one party will quickly surpass or took over the direction of the movement. This acceleration occur.
Another example is the pattern of the "flag" that we often meet. Chart patterns that could indicate the momentum describes a market undergoing consolidation, some kind of situation for berkasak kusuk between the buyer and seller to negotiate further price movement direction. However, after consolidation occurs, this pattern also indicates the potential of terdorongnya back the price with a more powerful movement.
Another determinant is the sign or signal from the use of an indicator. Take for example one called Stochastic. After the movement indicator line is penetrating a certain value range, the market will respond by releasing energy exceeding the previous average.
Well, now becomes a bit obvious right how the influence of momentum? Examples of the above circumstances can be the fact of the existence of the driving momentum. The facts keep rolling in line with the rotation of the wheel of the forex industry. Hopefully this bit of information can help all traders. Bijaklah transaction and good luck.