Masterforex-V: 2nd delusion of 97% of traders in the world. The formation of the currency price at the Forex market. - Masterforex-V

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2nd delusion of 97% of traders in the world. The formation of the currency price at the Forex market. Impact of economic factors on currency exchange rate.

#1 User is offline   FxShark 

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Posted 17 March 2014 - 21:08

The 2nd delusion of 97% of traders in the world. The formation of the currency price at the Forex market. Impact of economic factors on currency exchange rate

Please read through the whole chapter here


The essence of the delusion – the behavior of the currency quotations at the Forex market within the short-term (m5-m30) and mid-term (h1-h8) trading is not imposed by the improving or worsening of economic conditions (state) of a country and the volumes of the currency demand-and-supply.

Masterforex-V about the role of fundamental analysis at short-term and mid-term trends

·The news work just as a motive to drive (run) the price rates up and down.

·If the released news are better than the forecast, the probability for currency to advance equals to its fall.

·Price movement after the news is the working-off of technical-and-wave-analysis waves and sub-waves coded into the settings of the Major Computer of the Forex Founder.

·Understanding this MF algorithm, one can “follow the trend” not paying attention to the news results that are better/worse than the forecast, knowing the time of newscasts and the algorithm of the patterns of trend continuation/reversal for each variant.

The importance of this thesis. If trader's job is to speculate in the difference of currency rates (increasing or decreasing of thecurrency pair rate), then the following should be realized for the faultless gaining of profit:

1. The formation procedure (process) of currency pair rates at Forex.

2. Factors that make the currency pair grow or fall.

Thus, once realizing the factors of price formation at the off-stock (bookmaker) Forex market, a trader must clearly know:

·Either to buy or to sell this currency, keeping in mind the factors that move the currency pair up or down.

·How strong the following price movement can be and how to make precise calculations at the “uncontrollable” and “unpredictable” Forex market.

There exist 2 opposite standpoints on the factors that make national currency pairs move up and down.

·The classic supply-and-demand theory

·Masterforex-V's theory about technical analysis having an advantage over fundamental analysis within the scope of mid-term (h1-8) and short-term trends (m5-15) at the controlled Forex market.


The role of the news at the controlled Forex market.

·News are just a pretext to work off the impulse of one of the 8 time-frames

·Each Forex movement is determined, consequently it can be calculated and assembled online with the help of Materforex-V's new technical and wave analysis

·Is it accidental or not that Forex gives us a sea of price rates each movement of which is logical and a smaller TF is the work-off (including news releases) of waves, sub-waves and Fibonacci sequences, Murrey levels, the orders of the exchange and off-exchange Forex markets on bigger timeframes . Is this an accidental daily match of supply-and-demand balance of the market participants or is it the algorithm of the global interbank and interexchange computer software that control the Forex market? It will be discussed in the following chapter.

How a trader can always follow the market during the released news

1. Try to solve on your own the unsolved riddle of the classics of wave analysis

·How can the wave level of the current wave (m1…m5…m15…h1…h4…) be defined online

·How can one define the end of the current wave and the beginning of the next wave in the opposite direction (and consequently, its wave level)

·Then we come up to the classic impulse/correction patterns that are coded into the computer software of the Forex Founder (see the 11th grade of the school for beginners under Masterforex-V Academy)

2. Assemble the waves, knowing:

·The criteria of the difference between an impulse and a correction

·The wave level of an impulse/correction (the riddle, unsolved by classics but solved with the help of MF TS)

·The sub-wave work-off on any smaller TF before and after the news.

3. Based on the above mentioned algorithm define the extreme points of the trend reversal/continuation on a specific TF.

·What will serve as a proof of the trend reversal/continuation when working off the news?

·Why are you going to calculate the support and resistance levels of each of the 3 possible variants of movement

·Where is the point of the obligatory placing of a stop-loss? (If the stop-loss level is broken through, it means that an alternative variant of movement on the senior TF has just started)

4. Define the role of the following elements of MF's synthesis of binary patterns (SPB) as prompts not related to wave analysis:

·Allied currency pairs

·National currency indexes

·Exchange market orders

·Oanda preys' orders

·Exchange tools (oil, gold, indexes)

·Classic tools of technical analysis, i.e. Moving Averages, fractals, the AO, Fibonacci, Murrey and Demark levels.

·New tools of technical analysis i.e. intersession flats (ISFs), fractal-zigzag reversals (FSRs), MF pivots, MF SCs (MF sloping channels) , “the Hound” by Elder/MF, “the Trap” by L.Williams/MF, MF's wave levels, The 8-screen system of the TF synthesis etc.

5. MF's methods of searching for valuable information in analytic overviews

6. When you come up to MF's algorithm you will see Forex axioms at a completely different angle of view

·"The market is always right” (Wasn't it right on 1.04.2005 in the above-mentioned example? If the answer is YES then you should re-read the chapter)

·Only those are not right who trade for real money understanding neither the market itself nor its plans. Nor they understand that they follow the beaten path of “preys” to the killing of their deposits.


Please read through the whole chapter here


In this topic, you are welcome to express your Opinion and give your feedback about this chapter of 1st MasterForex-V book


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