Dedicated practical application Price Action method on the example of Russian stock market, caused an ambiguous reaction. Someone had everything clearly, someone was not clear, someone did not respond to her. In general, the essence is not in this. Our dear readers wrote that they do not see on the schedule that I see, for example, I. What they do not know (do not know how) read schedule. Of course, I tried to find out what it is not visible, but I did not receive the answer.
I decided to write another small note, in which I will try to present my understanding on the example, what does "read the schedule" mean. If interesting - Velik!
The Canadian dollar will perform experimental today.
Take a clean schedule (without indicators!) Schedule and "on the eye" We define the main direction of price movement. No trend lines, swing, waves, fibonnaccishes and other trees are not needed. Do not complicate !!!
This is a linear schedule, but with the same success you can take candles or bars. The main thing is not to look for nothing on it. No PIN bars, stroking, etc.
What happens with the price? In what direction does it move? Direction of graphics - up. Yes, I do not argue, there are oscillations that up, then down, even the lateral movement is. But in general, the schedule is growing. I really hope that this is understandable. Because, if this is not visible, you are interested in not trading, but a school course of geometry.
After we have decided on the main direction of the price, you need to remember the theory of Charles G. Dow and one of the three technical analysis postulates. By the way, the question of snowing - which one? If, suddenly, for some reason, you hear about them for the first time, I strongly recommend reading any book on technical analysis (Nimana, Schwagger, Elder, etc.). No matter what author, percent of 90 they are all the same. If you have forgotten these postulates, I also recommend opening a book, find them, print on a large sheet of paper and hang around the computer on which installed trade terminal.
It was a kind of preparatory stage. Now let's start analyzing the schedule in more detail and share it for a separate component. That is, from left to right, let's go for the price and try to understand what was on the market before and what is happening now.
For this stage of the analysis of the chart, you must be able to work with trends. You must know What is a trend, which types of trends are that the trend phases are, how to determine the trend (without indicators!) What is the impulse and correction. If you do not know this, then the answers to these and many other questions can be found in my webinars.
Someone may seem all that I wrote above, water. But i focus on this special attention . It is really important! This is the base base, it is a foundation. I am striking how people, without understanding these basic concepts, are trying to climb into the "highest mathematics".
So, back to the drawing.
- From October 2014 there was an upward trend.
- The price goes into the balance stage (FLET).
- Flat breakdown and exit from the balance sheet. IN technical analysis - This is from trend reversal methods.
- Pulbek (Retest) Border Flat. In this section of the graphics, the price returned, approximately, to the lower border of the punched trading Range.
- Here we see that the price "did not want to go down and the trend continued.
And immediately a few questions for self-control: how to determine the trend without indicators and how to identify trend turn?
If you can not answer these questions, then everything that will be written below is not yet for you. By the way, the numbers "4" - "5" indicates a rather complicated fragment of the schedule. For example, I could not believe it for a very long time that after such a breakdown Yes, with such a poolbank, the up-trend continued.
Pay attention to the area allocated yellow. Now, we understand that it is from this point our bullish trend continued. Understanding the importance of this zone returns us to trade in demand zones and suggestions, but this is a completely different story, which we will somehow talk about.
So, we decided that currency pair Located both in the long-term and short-term upward trend. In the next step, we will look at the schedule in more detail and for the analysis will take the latest current movement. The very thing that began, and more precisely, the long-term trend on the market continued. The graph is always more important what is as close as possible to current priceThe further the schedule goes into history, the less important and significant it becomes for us.
I sketched such a markup:
Now I will explain what's what.
- Very important resistance zone. It is a mirror level, it is the border of our long-suffering balance / Flat.
- The trading channel that "pounds" is our trend into the framework, and shows the change in its direction (in the event of a price for its border). On the chart, it is shifted solely for clarity to break the upper boundary of the channel and the output of the price from it. In technical analysis, this is a very important event.
- Trend Line, built ... But how and for what this line of the trend is built, I suggest to answer yourself (there is a separate article on the blog dedicated to these Trend Lines)
Well, with the context, we, more or less, figured out, now turn on the microscope and will look at the approaching our favorite bars:
July 15 a breakdown bar with a wide spread appears. It seems like the price puts all the points over "I", stating the breakdown and continuation of a bull trend. But then we are watching an interesting reaction to this breakdown - after a breakdown bar, the price for 7 bars passes the distance in just 190 pips. Good move, tell me, perhaps, but as long as we do not compare this distance with the distance that the price has passed on the breakdown bar. And here we see that 220 pips passed for 1 day, and for 8 - 190 pips.
Then the bear pine appears. This bar signals us that something happens to the bulls. Then we see a decrease in the appearance of another bullish pin-bar in the Fake Pattern.
Next, pay attention to the measuring bear bar (the one that is before the second PIN bar). What is interesting in it? Absolutely nothing, but as long as we do not compare it with subsequent bars. And we see to fall at 130 pips, it took just only 1 day, and the bulls returned these positions for 3 days.
As a result of the foregoing, you can draw conclusions: although there was a breakdown important levelbut the price is not going so actively as expected. So, if there is an appropriate setup, you can sell. In such a setup, the Pattern 1-2-3 and the Pattern 2 V. However, do not forget that the general long-term trend is ascending, so sales will be counter-trend. Consequently, such a deal will be with an increased risk.
Let's summarize
This article is not an instruction, not an algorithm, not a strategy and, in no case, not any regular gravity. In this article, I am on the example of a specific market situation, I wanted to show you the image of my thinking. This is one of my market analysis techniques. With that, here I have not taken into account the testimony of the volume and senior time frame.
That's all. There will be questions - I will try to answer.
Thank you for your attention and success in trading!
https: //sight/texnicheskij-analiz/uchimsya-chitat-grafik.html
Rubric Tags Record navigation23 comments to " Learning to read scheduleโ
Hello comrades! ๐
You raised a good topic, Vadim. Right. I am confident of 99% that in the life of trading you are not doing such buildings, but you see everything, without lines, levels and everything else. That is, one glance is enough.
I already call it already "we understand the market." Everyone has its own. And each in its own way sees. But the most objective information is the price. Everyone see the same schedule. And everyone must see the same thing. But no, everyone sees everything in its own way.
In general, with a view of Canadza, I agree. The only moment is point 4. I understood that it was neither Pulbback. This is the continuation of the ascending trend. Canadian tied to oil and correlates well with it. And the oil is then started to decline. Therefore, it was clear for me that there will be no downward kin. Plus, when we made a rollback from the 4th point and could not create a new minimum. When we approached Highyam in the area of \u200b\u200bpoint 2, I finally understood that there would be a breakdown. At least false, but breakdown. Soslated, I remember then climbed Canada. On Khaiyah there was a small stop, the Dodjo-Pin bars drew the price, but they did not work out. In addition, the foundation has come from the foundation that the regulator has reduced the bid. Still Galina then + 80% made it ๐
I think this is understanding the market. It is not at once. I was lucky, I have it more or less formed in 1-1.5 years more or less active trading. Some longer. Some are faster. Another question - or whether it is necessary?
Here you can breed demagogy. On the one hand, understanding is necessary. Then you go to the Kasta "Supreme Traders" - discretioners. Such traders may understand when "movie will be, and when the kin will not". They have a framework system, everything else is an understanding. But also a clear mm. Plus, discretionary workers always have a trading plan for all market cases. They know what they will do in advance. At the same time, it is impossible to say that the discretions of the Guru and robbing markets. They have enough moose and profit. A good understanding of the market does not guarantee earnings. One thing to understand the market, and another thing to comply with the discipline in the implementation of the trading plan. After all, "I am the smartest, I myself know where to enter where to go!".
Another question is the system. If there is a clear and unequivocal system, then do you need to understand what is happening on the market? A tool showed that the trend is ascended, waited for confirmation from the other and input. Put the stop, profit and go walk. Yes, a certain number of times will be contacted from the market, but by the result of a series of transactions you will be in the plus. What else does?
What did I spread here? The fact that be able to read the market would be necessary. On the other hand, if it does not work, then you should not bend yourself. Not everyone is given to "read the market." If you have enough disciplines to observe any simple system, then go ahead. Stupidly trading through the system and will be a profit. Observe its rules and collect statistics.
Vadim did not just come to this conclusion and vision of the market. It is not a fact that you will also get. You still have another temperament, discipline, the ability to motivate yourself and so on.
"If you do not understand PIN-bars - do not trade" - Vasily. ๐
Something like that.)))Friends! My blog has small technical problems. Nothing terrible, but I had to restore a backup copy of the database. ๐
As a result, "suffered" only two today's comments (Mikhail and mine).
Mikhail, I would like to apologize for the fact that "lost" your comment. Very sorry, because the comment was really cool and useful. Hope for understanding.Very sorry, because the comment was really cool and useful. Hope for understanding.
This letter came to me as a comment by Mikhail. If you can, then draw it)))))
Author: Mikhailcomment:fully agree that Fakey is a false breakdown of the inner bar. But I do not read the "Bibles", so I have a slightly different look at some moments.
And here I do not agree. The fact is that any market situation should always be considered in context. And in particular, when after some trend, an inner bar is formed, that is, two ways to trade it can be traded: along the trend or turn. If on a trend - everything is clear. But if on a turn ... Here it should always be remembered that there is a potential on the formation of fake (false breakdown) along the trend.For some reason, it seems to me that you are now in Longs on Canadz, came from a bullish Pina from July 29.
Not certainly in that way. He came from rollback on July 31 at a price - 1.29 700. SL was at the level - 1.29 135 (mid-day, then I mean Pin Bara - July 29). ยฝ The position closed at the level of - 1.31 117 (in the ratio of 2.5: 1 relative to the foot) after the breakdown of the last resistance level - 1.31 025. After the level retail - 1.31,117 and the resumption of a bull trend, a stop under the level - 1.31 025. So far in the transaction, but already forgot about it. Take Profit is at the level - 1.33 000. This is the following strong resistance. I forgot to say: I have an ECN account, so the spread is almost not visible.
If you take a pin on the day, then inside the day it will turn out some level. After all, the patterns they did not come out of the air. Any pattern has a logical explanation, and not just a "long tail", "small body", etc.
Bravo! Add nothing ...And most of these people look at specific generally accepted Time Frames (not mistaken if you name the most popular H1 and D1).
Essently for them.
Here we are rubbled here, and they give us their blood. It is possible for me now it seems that good movements from levels occur without obvious patterns. Probably due to the popularity of RA.
Not always. Very often, the signals work out. However, I rarely directly from levels. Usually, at the day, I watch the formation of PIN babe (preferably with a false breakdown of the level), or an internal bar. Sometimes fakes. But most often PPR. After turning to intraday timeframes and wait for confirmation with triggers on the daily chart. Here already and decide to enter the transaction or not. These manipulations help filter false inputs and significantly reduce the stop.But then how to filter the transactions? Because, trading just from the level, the number of all transactions and unprofitable too.
Well, if only significant levels are trading - there will be a lot of transactions. In general, most of those who are trying to trade Price Action, for some reason forget about such things like a momentum. That is, in the direction of the intended price movement, there must be a pulse. Moreover, on younger timeframes you can always see the bar on which we want to enter. And directly analyzing the candles can be seen where the accumulation of volumes occurred (I'm not talking about such a busty as a teak volume or something similar). However, as part of one comment, this topic is not disclosed.Thanks for the comment. It was nice to read.
Mutually. Nice to talk with a real trader.
P.S. By the way, Vadim, your website won by chance. I was looking for information on how to move from Forex to the stock exchange. I want to stretch again and there, and then rumors are full of land ... and the site is interesting! We are !!!
Moreover, on younger timeframes you can always see the bar on which we want to enter
and if, for example, there is no opportunity to look at the younger TF, what to do then?
Vadim, hello! Not the first time I hear about Patern RPR. I looked in the Internet there is a description, but there is no info how to work out it. Please tell me.
Best regards, OlgaSimilarly, like other patterns - on breakdown. But you can come up with your criteria for working out. This is trading ๐
The breakdown is not quite true. IMHO. Our footsteps should be as small as possible, and potential profits - as much as possible. It is better to always go from rollback to some level. Also with PPR. If Vadim allows, then below the ladies a few links on the topic of fasting:
_http: //forexlis.ru.
As for me, this is the most integral resource about Price Action in the Russian Internet. It was on him that I finally learned to trade according to this method. A lot of video materials. By the way, the last posts are just dedicated to PPR.
_http: //tradelikeapro.ru/
Also a pretty good resource. There is a free course of patterns Price Action. However, mostly information is non-breeding. Direct manuals for action This site does not give. But some interesting things here are still published. Also many videos.
_http: //forum.roboforex.ru/showthread.php? T \u003d 863 - Oleg Branch (Nick - Raekwon).
Yes, I will forgive me Vadim, for this Url leads far from main page Site. But the fact is that the rest of the infra on this forum is a specific garbage. And Ul gives those who want to see how a man trades a classic Price action. That is, exactly as it trades James16 with forexfactor. Only levels and a couple of patterns, and that's it. It is there that can be found explanations as a trade profi on a clean schedule. By the way, the information is only text and drawings, no video.But the course on Ra is fade in comparison with the course on VSA.
Oh, ho, ho. Well, how much can you about VSA? Well, no on Fores volumes. More precisely, there is, but not teak. After all, what is the definition of teak volume? It is supposedly volume for some interval during working day! Price ACTION trades on day candles. And the teak volume should be supposedly watching only within the day. Well, why is it needed?
By the way, the one who says that there is no real volume on Forex - also have a fad. And the price is evacuated to us. Well, I formed a PIN on the daily chart, and even at the level of support / resistance, is good. And now I will go to H4 or on H1. And let's see how this most PIN was going.
- If in the area of \u200b\u200bthe tail was initially consolidation - it means someone gained a position. And if after that there was a sharp impulse to the closure of the day - it means there is a potential of movement.
- If the price approached the level relatively calmly, and then it is not clear why it turned into the other side and the closure of the day happened from the side of the opposite level - I personally would have done myself: whether it should be trading this signal ...
Yes, on Fores in MT4 there is no glasses of applications. Yes No data about the volume of transactions. And there is no much more. But there is price. Here are the price. We trade what we see! And where someone gains a position, or accumulates the volume (backwards at the level) and the mood of market participants, and who is now stronger - everything can be seen on the price schedule if you know how.
And the indicator of teak volume is an indicator, and therefore second and useless ...That is how it trades James, only it sells exclusively. All others are just an interpretation on the topic.
It is difficult to argue.
All combined Runet sites about Ra do not go any comparison with the James16 branch on Forex Faketor.
And here too.
However, the mind will be learned by the mind. It would be a desire to take and apply in practice. And in another way ... any forexfactor in the GOB will not go.In addition, it is necessary to understand today's structure of the liquid market. These are thousands of robots, dozens of / hundreds of banks, marketers and a bunch of traidunov. Each of them creates a unit of volume. Yes, in times, when the markets were on the phone, there was no software, the volume was valuable. But now, in my opinion, the volume is about what he says. Especially on Forexes.
Here are the price. We trade what we see!
This is the only thing that remains to us, poor traders ๐
And the indicator of teak volume is an indicator, and therefore second and useless.
Without volume, it is possible to trade quite yourself, but without a price ...
Personally, I am somewhat against the volume in any form. There is little sense from him now. Although the Vo-Shnikov is beautifully it turns out to talk about "accumulation, distribution, piping, and so on." But it personally to me. I did not fit with the BCA. Although I sometimes say that "you would connect the volume to the supply and demand zones."
Well, this is me, 5 kopecks insert. I hope no one is offended?
Vadim, an article - super, all worn. In my opinion there are more benefits in it than some sites that are filled with years. Many thanks.
Vadim, thank you very much for the article. I liked it very much. I did not deal with the analysis of bars. Somehow I did not even occur. Still, a person is such a creature until he can all know and do not put in the mouth does not reach. Or when it does not reach you to listen to the same thing many times and then it comes out. Thanks again.
Vadim, thanks for the article.
It is written by Tolkovo, only here there is a nuance for "Fakes". Well, there is no it on this schedule! Fakes are a false breakdown of the inner bar, that is, of course - the maternal candle, but in the composition of the pattern, an inside bar must be present. You have on the schedule - the usual "bearish" bar (not internal). And after it - a bar which can be called pin with some stretch.
In general, the fact that it is allocated in your red rectangle is a "candle reversal" pattern (PPR). We observe it on D1. If you imagine a virtual timeframe d3 (that is, you will bring these three candles together) - we will get pin bar on the d3 timeframe. Classicโฆ
It should be understood that the market is trading independently of the standard time intervals of set in MT4. In our case, PPR is also aimed at continuing the up-trend, but only it is somewhat different.
Special thanks for not interfering with everything in one pile and understand that Price Action is not at all a candle analysis. Moreover, all its patterns are conditional and are called upon to help, that is, to become only additional triggers for the entrance. No more. In general, it is quite possible to do without them (there are enough levels).
P. S. By the way, the J16 itself - indicated only on such patterns as: pin bar, external bar and PPR. And now the whole Bible price action is written, and from the patterns in the eyes of Ryabit. So do not understand people what the difference between the methods price action from the candle analysis ...
To begin with, try to find the field definition area:
Cope? Compare answers:
All right? Well done!
Now let's try to find the range of function values:
Found? Compare:
Cached? Well done!
Once again we will work with the charts, only now a little more complicated - find and field definition area, and the function of function values.
How to find and definition area and field values \u200b\u200b(advanced option)
That's what happened:
With charts, I think you figured out. Now let's try in accordance with the formulas to find the field definition area (if you do not know how to do it, read the Pro):
Cope? Survey answers:
- Since the feeding expression should be greater than or equal to zero.
- Since it is impossible to share on zero and the feeding expression cannot be negative.
- Since, respectively, at all.
- Since it is impossible to share on zero.
However, we have another not disassembled moment ...
I repeat once again and make an emphasis on it:
Noticed? The word "only" is very, very important element of our definition. I will try to explain to you on your fingers.
Suppose we have a function specified direct. . When we substitute this value In our "Rule" and we get that. One value corresponds to one value. We can even make a table of different values \u200b\u200band build a graph of this feature to make sure that.
"Look! - You say, - "" meets twice! " So maybe parabola is not a function? No, is!
The fact that "" is found two times far from being accused parabola in ambiguity!
The fact is that, when calculating for, we received one igrek. And when calculating with we received one igner. So everything is true, Parabola is a function. Look at the schedule:
Figured out? If not, here's a life example of a fact that is far from mathematics!
Suppose we have a group of applicants who have become acquainted when submitting documents, each of whom told the conversation where he lives:
Agree, it is quite realistic that several guys live in one city, but it is impossible that one person lives in several cities at the same time. It's like the logical representation of our "parabola" - a few different X corresponds to the same player.
Now come up with an example when the dependency is not function. Suppose these same guys were told to what specialties they filed documents:
Here we have a completely different situation: one person can safely submit documents for both one and several directions. I.e one element Multiple is put in line with several elements sets. Respectively, this is not a function.
Check your knowledge in practice.
Determine in drawings, which is a function, and what not:
Figured out? But I. answers:
- The function is in, e.
- The function is not - A, B, D, D.
You ask why? Why, that's why:
In all drawings except IN) and E) One accounts for one!
I am sure now, you can easily distinguish the function from not a function, say what an argument is and what a dependent variable is, as well as define the area of \u200b\u200bpermissible argument values \u200b\u200band the function of determining the function. Get to the next section - how to set a function?
Ways to set the function
What do you think mean words "Set function"? That's right, it means to explain to everyone about what function in this case There is a speech. And explain so that everyone understands you correctly and drawn by people in your explanation of the functions graphics were the same.
How can I do that? How to set a function? The easiest way that has been used for more than once in this article - with the help of the formula. We write a formula, and, substituting the value in it, calculate the value. And how do you remember, the formula is the law, the rule by which we and another person becomes clear how the X is turning into the game.
Usually, this is how they do - in the tasks, we already see the ready-made functions given by formulas, however, there are other ways to set a function about which everyone forgets, and therefore the question "How else can I specify a function?" puts in a dead end. We will understand everything in order, but begin with an analytical way.
Analytical way to set function
Analytical method is a task function using the formula. This is the most universal and exhaustive and unambiguous way. If you have a formula, then you know about the function absolutely everything - you can make a sign of values, you can build a schedule, determine where the function increases, and where decreases, in general, to explore it on the full program.
Consider a function. What is equal?
"What does it mean?" - You ask you. I'll explain now.
Let me remind you that the expression in brackets is called an argument. And this argument can be any expression, not necessarily simply. Accordingly, whatever the argument (expression in brackets), we write it instead of expression.
In our example it will work like this:
Consider another task associated with the analytical way to set the function that you will have on the exam.
Find the value of the expression, with.
I am sure that at first, you were frightened, seeing such an expression, but there is absolutely nothing terrible in it!
Everything like in the past example: Whatever the argument (expression in brackets), we write it instead of expression. For example, for a function.
What should be done in our example? Instead you need to write, and instead -:
reduce the resulting expression:
That's all!
Independent work
Now try to find the value of the following expressions:
- , if a
- , if a
Cope? Compare our answers: we are accustomed that the function has the kind
Even in our examples, we specify the function in this way, however, you can analytically set the function in an implicit form, for example.
Try to build this feature yourself.
Cope?
That's how I built her.
What equation did we eventually withdraw?
Right! Linear, which means that the schedule will be straight line. Let's make a sign to determine which points belong to our straight:
That's just what we said about ... One corresponds to one.
Let's try to draw what happened:
Is that what we got a function?
Right, no! Why? Try to answer this question with the drawing. What came out?
"Because one value corresponds to several values!"
What conclusion can we do from this?
That's right, the function cannot always be expressed clearly, and not always what "disguised" under the function is a function!
Tabular way to set function
As the name implies, this method is a simple sign. Yes Yes. Like the one with you already made up. For example:
Here you immediately noticed the pattern - Igrek is three times more than X. And now the task to "think very good": what do you think is equivalent to a function specified in the form of a table, functions?
We will not argue long, and we will draw!
So. We draw a function specified by wallpaper:
See the difference? The point is not at the noted points! Look more carefully:
Now saw? When we specify a function in a tabular way, we reflect only those points that we have in the table and the line (as in our case) goes only through them. When we set the function with an analytical way, we can take any points, and our function is not limited to. This is such a feature. Member!
Graphic method for building a function
The graphic method of building a function is no less convenient. We draw our function, and another interested person can find what is equal to the game at a certain X and so on. Graphic and analytical methods are some of the most common.
However, here you need to remember what we were talking about at the very beginning - not every "zagulin" drawn in the coordinate system is a function! Remembered? Just in case, I will copy you here the definition that the function is:
As a rule, people are usually called those three ways to set the functions that we disassembled is analytical (using the formula), tabular and graphic, completely forgetting that the function can be verbally described. Like this? Yes, very simple!
A verbal description of the function
How to describe the function verbly? Take our recent example -. This feature It can be described "Each valid value of the IX corresponds to its tripled value." That's all. Nothing difficult. Of course, you will objize - "There are so complex functions that are verbally to ask simply impossible!" Yes, there are those, but there are functions that describe verbally easier than setting the formula. For example: "Each natural value of X corresponds to the difference between the numbers from which it consists, while the greatest digit contained in the recording of the number is taken for the reduced. Now consider how our verbal description of the function is implemented in practice:
The largest digit in a given number -, respectively, is reduced, then:
Basic types of functions
Now let's go to the most interesting - consider the basic types of functions with which you worked / work and you will work in the course of school and institute mathematics, that is, we will get acquainted with them, so to speak and give them brief description. For more information about each function, read in the relevant section.
Linear function
The function of the view, where, actual numbers.
The graph of this function is straight, therefore the construction of a linear function is reduced to finding the coordinates of two points.
The position of the direct on the coordinate plane depends on the angular coefficient.
Function definition area (AKA area of \u200b\u200bpermissible argument values) -.
Value area -.
Quadratic function
Type function where
The graph of the function is parabola, when the parabola branches are directed down, when - up.
Many properties of quadratic function depend on the discriminant value. Discriminant is calculated by the formula
The position of the parabola on the coordinate plane relative to the value and the coefficient is shown in the picture:
Domain
The range of values \u200b\u200bdepends on the extremum of this function (the point of the pearabol vertex) and the coefficient (directions of the parabola branches)
Inverse proportionality
The function set by the formula where
The number is called the coefficient of inverse proportionality. Depending on what value, the branches of hyperboles are in different squares:
Domain - .
Value area -.
Summary and basic formulas
1. The function is called a rule by which each element of the set is put into compliance with a single element of the set.
- - this is a formula that denotes a function, that is, the dependence of one variable from the other;
- - variable value, or, argument;
- - The dependent value is changed when the argument changes, that is, according to any particular formula reflecting the dependence of the same value from the other.
2. Permissible values \u200b\u200bof the argument, or function definition area is something that is associated with possible, in which the function makes sense.
3. Function values \u200b\u200barea - This is what values \u200b\u200breceive, with permissible values.
4. There are 4 methods for setting the function:
- analytical (using formulas);
- tabular;
- graphic
- a verbal description.
5. Basic types of functions:
- :, where, - real numbers;
- :, where;
- :, where.
Exchange graphs are one of the most important tool for analyzing current market situations and forecasting further price behavior. They allow you to determine the balance of forces between bulls and bears and make a choice in favor of those whose side most. In addition, stock schedule can help assess the growth potential (or fall) on the analyzed tool to decide on the entry into the transaction. It is from them that the study of technical analysis begins.
In stock trade in this moment Three main types of graphics:
- linear
- japanese candles
Linear graph
The easiest and ideal for beginners is the appearance of the exchange quotes. These are all such graphs all painted at school, institute. The chart is applied, equal prices for closing periods. And these marks are connected by lines. As a result, and get a similar picture. 
Sometimes a linear graph is displayed in another form when the entire space below the price is painted with color. In the picture below, similar to a linear schedule, only in the form of an area.
Linear schedule is convenient for human perception, as it does not have extra information. Everything is extremely simple - the line is upward - the uptrend, falls - downward. However, for a more serious analysis, it lacks a lot for more informationSo most traders use other types of graphs.
Bars
A graphical representation of prices on the graph with the use of bars is more informative. Unlike linear, bars show additionally opening prices, maximum and minimum, which reached the price at a given period.
The bar is a vertical line with horizontal cuts on the right and left. Depending on how the schedule presentation interval is selected, such data will show one bar. If the day interval is selected, then one bar is one day, weekly - 1 week, etc.
Bar length corresponds to a price range. The upper and lower points are respectively the maximum and minimum level of quotes. The line on the right is the opening price, on the left - closure. If the left line is lower than the right, then the price of closing above the opening price and we are observing growth. And vice versa, when the left line is higher than the right, we get the price of the closure below, the opening prices and market prices are falling.
Japanese candles
Japanese candles carry absolutely identical information as bars, namely the prices of opening and closing, maximum and minimum quotes for the selected period. The difference between bars and candles is only in graphical representation.
If bars are displayed as horizontal line, then the candles are part between the prices of opening and closing draws thickened. It is called the candle body. And the interval from the body of the candle to the maximum minimum is the shadow of the candle.
In addition, depending on the growth or fall, the body of Japanese candles is painted in different colors. In the classic version, white color is height, black - drop. Another common option: a combination of green and red, where red says and reducing quotes, green about growth. Many traders use their color combinations, but it is rather the case of habit.
Coloring coloring improves the perception of the graph.
The same schedule presented in the form of Japanese candle.
Use of candles and bars in technical analysis
Example 2.
Candle, referred to as a hammer in Japanese analysis. She talks about the following: when the market is discovered, the bears captured power and pushed the price down, but in the future their strength dried up and most became on the side of the bulls, which again raised the price up, almost prior to opening prices. Therefore, the likelihood of growth the next day is great.
Of course, on the basis of just one candle, do not make a full analysis. Combinations are usually used, together with support and resistance lines, which give a higher probability of the onset of projected events in the future. Therefore, it is necessary to properly learn to read stock exchanges for successful trading on the stock market.
Cryptocurrency exchanges work just like ordinary stock exchanges valuable papers. An experienced trader will spend some time to take a look at the BTC course schedule, ETH or another asset, and novice risks money. In order to understand and learn to decrypt data from a price chart, you need to understand the essence of the main schedule "Japanese candles", which can be found on any of the existing crypto exchanges.
Exchange graphs are an essential tool for market analysis, as they present information about prices in the graphic, visual version, which is the most simple for general understanding of the market situation than text or digital information. They allow you to see the mass behavior of the crowd, and also assess the alignment of the forces between sellers and buyers, which ultimately makes it possible to understand the potential of profitability of transactions.
Types of stock schedules
There are three main types of graphic value display - line, bar and Japanese candle. Each of these tools provides information about the purchase price of the relevant period, the price of closing, the lowest and highest prices (except linear graphicwhich is based only on the closing price base).
The graphs used by the traders indicate a change in price for a certain time segment, for example, for 1, 30, 60 minutes, per day, week, month or year.
In essence, stock schedules are the history of the struggle between bulls and bears for the predominance of the market. As a result of such a struggle, a huge number of transactions are made, each of which is necessarily reflected in the chart - one TIC corresponds to one such transaction. When the price grows, it means that someone already suffers losses, and someone already earns.
That is, actually stock graphics are not just conditional reflection Changes in value, and first of all show human emotions - fear and greed, despair and hope.
Schedule "Japanese Candles"
This schedule was invented by the Japanese trader Rice Munehis Homma in the XVII century and at the moment is the most common method of making market data. Watching the usual price schedule is not too convenient, therefore, to build a "Japanese candle", time is divided by periods, for example in 10 minutes. A similar separation for periods makes a visual overall picture, which helps to judge the trend.
In our example, a schedule was selected for 1 day and each of its divisions corresponds to 1 hour. Here are red and green rectangles (called "jittai" from the Japanese body "body") dyeing depending on whether the opening price was below the closing price of the period or vice versa.
How to read a schedule
In the form of a vertical line in the body of the candle, the maximum and minimum price is displayed. This is easy to notice that January 8 in 1 hour from 22 to 23 o'clock the maximum course was $ 958.21954, and the minimum $ 922.84726.
In this case, we see that an hour has begun a course at $ 935.00001 for 1 BTC, and ended with a course of $ 956.99000 for 1 BTC, so the rectangle is painted in green.
The vertical line is called "Kage" (shadow). Thanks to the shadows similar to the wick candle, the schedule and got its name.
In practice, on the relative length of wicks, you can judge the trend for the next period. The long top of the wick (in comparison with the bottom) can talk about the further growth, and the longer lower part of the course falling.
- volume
- time,
- price.
Because the analysis of trader graphs is reduced to calculating the balance of demand and suggestions. And the demand for demand and suggestions, according to the same law, are expressed through the price (the vertical axis in the figure above) and the volume (number of transactions, horizontal). Consider reading the volume graphics and time prices, the trader can see the change in the balance of buyers and sellers, and take a favorable position in advance before the price begins to change.
Example of reading and understanding course graphics
- After opening the market, the price did Spring (deceived maneuver down, knocking down the foot of yesterday's bulls, and fascinating bears in unprofitable sales).
- Shopping wave, locking sellers in the minus. Green color on the histogram of volumes exceeds red - purchases occur at a market price, a bull sign.
- Above the level of 80300 is SOT - Shortening of the Thrust is a reduction in breakthrough. Each new High demonstrates an increasing increase in the price of graphics. A sign that bears have resistance. Fistened downward wave at 9:45 - additional drawing the confirmation.
- Blue Arrow 10:16 Shows a candle on the chart when the efforts of buyers did not bring growth. And most likely, reflected sellers encountered ASK and above 80250 (also, by the way, SOT)
- Red arrow - a signal to the input in a short position. On the background, we have several bearish signs that are justifying shorts. And this candle with the prevailing sales volume may display the beginning of the descending wave. Short opens in the next 2-3 minutes, for example, 80100, with a stop 80250, and the goal of 79500 - the level where buyers showed their advantage by starting the morning ascending wave.
Transaction potential: Possible loss 150, Possible Profit 600. Attitude: 1: 4 - good relationship for a deal with a high probability of success.
To improve market reading skill, close the right part of the paper schedule, and open it by shifting the paper to the right bar behind the bar. Fix your conclusions with each open bar and try to understand the essence of what is happening.
Video lesson
For very newcomers in this matter, we suggest see a small 3-minute training video . It gives a good presentation and basic knowledge to decipher the charts of the Cryptodeneg.
Is it possible to make money on the stock exchange?
The famous trader - Richard Dennis began trading on the stock exchange in the 70s from $ 1,600, taken into debt and for 10 years turned them at $ 200 million. Dennis's strategy was drastically different from what his competitors did. While other exchange players were engaged in scalping, that is, they did a lot of operations in one day, trying to catch minor changes in the course, Dennis kept positions over long periods, seeking to earn on trends (direction of price movement). So the question about the possibility of earning is answered by absolutely affirmative - yes, if you study and train. Successful bidding for cryptocurrency exchanges!
