Forex encyclopedia

By doing backtesting manually and studying price movement bar by bar, a trader stores price movement data in his/her brain one after another. When the brains receive enough similar data over a period of time, it automatically sorts them out and tags certain data with certain similarities while discarding the rest. Thus, over time, when a new data enters what a trader sees in his/her chart, if it has a close similarities as the tagged ones, the brain kicks up. As the result, a mentioned trader feels he/she recognized the price movement and its possibilities. Thus the trader has built his/her trader's instinct.
Popular article: Equidistant Channel
Equidistant Channel represents two parallel trend lines, which serve as support and resistance lines for the price. Basically it is inclined trading range with the lines connecting highest and lowest prices. Prevailing tendency is defined by a trader. If trend is upward, the line should be built along two lowest points (bottom – bottom). In case of downward trend, the line is built along two highest points (top - top) Parallel line is built as distant as possible from the trend line. The result will be equidistant channel within the borders of which fluctuation of currency rate takes place.
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