First U must know,
What is trend
Definitive movement of currency to a certain direction, is called trend. It is Short time consuming , most of the movement occurs here. It is time dependent. So trend of certain time such as 1hr, 4hrs ,1 day, 30 min trend. but Higher time frame is less noise producing and professional trader use higher time frame.
Phase of trend:
Phase 1:
Accumulation:
It starts of breakout of previous S/R, Here people are in indecision on trading, It follows a correction which is wave 2, Correction , The correction follows fibbonacci retracement, It is correspond to wave 1 of EW..
Phase 2:
Participation:
After that traders feel interest in trading more trader comes it breaks previous resistance and make a stronger trends , It is most stronger trend , it corresponds to wave 3 of EW.It follows Fibbonacci extension.
phase 3:
Distribution:
After the phase 2 there is a Correction which is called wave 4, Here trader number decrease and few trader feel interest in trading, It corresponds wave 5. or phase of decline
this is the way market moves. It is applicable in any time frame even 15 min, 1 hr,4 hrs, daily. Every where in trading.
In dow jones theory accumulation, participation, distribution phase in any move.
What is trend
Definitive movement of currency to a certain direction, is called trend. It is Short time consuming , most of the movement occurs here. It is time dependent. So trend of certain time such as 1hr, 4hrs ,1 day, 30 min trend. but Higher time frame is less noise producing and professional trader use higher time frame.
Phase of trend:
Phase 1:
Accumulation:
It starts of breakout of previous S/R, Here people are in indecision on trading, It follows a correction which is wave 2, Correction , The correction follows fibbonacci retracement, It is correspond to wave 1 of EW..
Phase 2:
Participation:
After that traders feel interest in trading more trader comes it breaks previous resistance and make a stronger trends , It is most stronger trend , it corresponds to wave 3 of EW.It follows Fibbonacci extension.
phase 3:
Distribution:
After the phase 2 there is a Correction which is called wave 4, Here trader number decrease and few trader feel interest in trading, It corresponds wave 5. or phase of decline
this is the way market moves. It is applicable in any time frame even 15 min, 1 hr,4 hrs, daily. Every where in trading.
In dow jones theory accumulation, participation, distribution phase in any move.
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