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?
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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