Price movement component

1. Trends
Trends are defined as the price tendency to move in one direction. In simple terms, trends are divided into 3 types:
Uptrend, namely price movements that rise gradually.
Downtrend, namely price movements that decline gradually.
Ranging or Sideways, which is when the price shows consolidation due to the attraction between the seller vs. party. buyer. In this condition, the direction of the trend is difficult to know because prices only move up and down within a certain range.
 
2. Volatility
The magnitude of the distance between periodic fluctuations in prices is called volatility. High volatility means that prices go up high quickly then suddenly drop quickly too, so that the difference is very large between the lowest price and the highest price at a time. On the other hand, lower volatility means that the exchange rate does not fluctuate much, and the changes tend to be small over time.
3. Momentum
This momentum has something to do with the trend in the first point above. In order not to be wrong or late entry, we need to know first the strength of the trend that is happening. This strength is called momentum. With the help of momentum, we can find out whether the trend will continue (momentum strengthens) or even turn around (marked by a weakening of momentum).

4. Market Strength
The intensity of market opinion related to a price, by looking at the market position taken by various market participants, is called market power or market sentiment. In the forex market, this sentiment has a significant effect on the market conditions being traded. Negative sentiment will usually weaken the market, while positive sentiment tends to strengthen price movements in the market.

 5. Cycle
That is the tendency of market prices to move in certain cycle patterns. One theory of analysis that reviews the pattern of price movements in a particular cycle is Elliot Wave. Here, prices are mapped in 5 main waves and 3 corrective waves. If the price has formed all of these waves, the trend will continue.

6. Support Resistance
When traders assume the current price level is too high, they will tend to end the buy action and take profit-taking. This action causes prices to fall after reaching a certain high level, or commonly referred to as Resistance. Conversely, there is a price level that traders consider to be quite low, so those who sell will make profit-taking. As a result, prices will be corrected up from a level known as Support.


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thank you for the positive comments,

I really appreciate your opinions and suggestions, hopefully my posts can benefit us all

after I read this post I gained more knowledge

nendi night. I am very excited to read your writing. very inspiring. and in my opinion supplay and demand also support and resistance are two components that cannot be separated in analyzing price movements. without downplaying other indicators, I think these two things are my current grip.

of the components that you have mentioned do reflect the movements in the forex market and that is reflected in a price chart. By understanding and being able to identify each component, it will be easier for us to reach the target as desired.

prices are basically driven by supply and demand so if we want to identify the effects of price movements we must be able to measure the quantity of demand and supply.

Several things that affect price movements are fundamental news, political economy issues and also market sentiment that affects the amount of supply and demand.

actually the price is only driven by 2 components, namely supply and demand, it's just that what causes the price to move is very complex so not all traders know that.