Forex encyclopedia

You've probably once thought: "Why are prices moving in graphics?" There is a currency vendor, and there is the buyer of the same currency, they make a bargain and everybody is happy. Who then needs to grow or fall in price then? After all, when you buy a bread at the store, such an action does not allow the price of bread to change. Maybe it's a global financial conspiracy or brokers hiding something from us? Undoubtedly, you've also heard an old, good tune-up: Trend is your friend. Have you ever wondered why Forex strategies based on trend tracking work and why trend-based marketing is so universally recognized and popular? The reason is simple. The trend is likely to continue and go on. Once the movement has begun, it is easier for it to continue the movement in the direction than to stop, let alone reverse. This is one of the axioms in the treasure. We give this expression a variety of definitions, trend, momentum or tendency. However, what is the real reason for this? What's really going on in the market and what makes the price move after the trend?
In measurement formula for Joe Granville indicator, close prices compared with the purpose of adding or deducting of volume, whereas Williams' indicator open and close prices are compared. Marc Chaikin compares close prices with the middle of range from minimum to maximum. The history of indicator is interesting on its own. In Larry Williams formula, Chaikin substituted open price for price of range. The reason of change was not that he considered it wrong, but that he was not able to find data on prices of opening. That time prices were taken from daily papers, which, due to some reason, stopped publishing prices of opening.
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Forex encyclopedia
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