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I have just posted a video relating to Forex Symmetry within the EUR/USD - in the video we take a look at the EUR/USD within the four hour time frame.
http://youtu.be/LPWcHQTgDBo
Symmetry within the FX markets is that not a hot topic for comment within the blogging and trading community. But it is important. If you have taken a look at the video you will have no doubt seen the formations in rising markets , which include pull backs and momentum moves, seemingly mirrored to the down side.
The long explanation for these formations is somewhat complex. The short explanation is due to the entry and exit into the market by the three types of trades, professional, semi professional or adequate trades and the public. All three groups make the same trading judgements and misjudgments and the price patterns follow as a result.
For example the professionals will on balance extract money from the market and so will tend to enter their trades in the same way, be them long or short. They try to get in without being seen or moving price too much. Not always easy when you are buying 50 million. They will take their profits and reverse in the same manner. The accumulated weight of their positions manifest themsleves in the market, such that at a certain point the only people left buying are the public, who create their own price patterns because they also repeat what they do be they long or short.
The symmetrical patterns are best seen then when the markets can be considered as ranging markets even though the swings are very big.
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