Psychodiagnosis . A Little Bit of Subtle Market Understanding

Forex market multifacetedHere is the psychology of human behavior, the magic of numbers hidden in the genius structure of nature, and the interests of large market participants. Each of us, traders, is trying to unravel the mystery of price behavior, being in a continuous search for the answer: "What will happen next?", striving to subordinate the market to his will.

The market is like a living creature: it feels us and plays with us. It does not need to be conquered, but befriended. Having done this, in the end we will see that we have made friends with ourselves, because in fact everything we see on the monitor screen is our own reflection. Therefore. each trading tactic is individualHowever, before building your own trading system, it is useful to familiarize yourself with the existing ones and expand your horizon with the help of non-classical types of analysis and peculiar tools that can be added to our arsenal. However, before building your own trading system, it is useful to familiarize yourself with the existing ones, as well as to expand your horizons with the help of non-classical types of analysis and peculiar tools that can add to our arsenal.

So, what techniques exist for predicting and understanding price movements? Probably, every day dozens or even hundreds of unique methods are created, which in their own way tell us about the future price movement. In the next issues of the magazine we will tell you about an unusual method of understanding the market. psychodiagnosis price movements; we will introduce you to some "noise reduction filters" that allow you to see price movements differently; we will talk about instruments that are in direct or inverse correlation and try to find patterns of behavior of each of them. A bit more about the upcoming topics:

Market psychodiagnosis

Market psychodiagnosis is not a type of technical or fundamental analysis. This method is a sequence of actions to assign a mental state to the investigated section of price movement.

Using this method, we can make a "diagnosis" of the market at a certain point in time, analyze the moods of market participants, talk about potential risks, the degree of price fluctuations, and the duration of the current trend. Also with the help of psychodiagnostics we can identify the interests of society as a whole and the interests of specific members of society. And if so, we can understand the mood of traders as well. In general, this type of analysis can present a complete picture of what is going on and help us to assess the market situation more easily.

Psychological analysis is very important not only when dealing with the market, but also when dealing with yourself. And since in trading our only enemy is ourselves, an in-depth study of this issue will be helpful.

Noise reduction filters

Market noise is price data that distorts the picture of the underlying trend. Noise mainly includes small corrections and intraday volatility. It makes it difficult to predict price movements. The smaller the timeframe, the more noise there is. To suppress them, "filters" - special indicators - are used. With their help it is easier to determine the price direction.

We will cover this and much more in the next issues of ForTrader.org magazine. Successful trading, and don't forget: everything that drives us in search of answers is powerful, and by skillfully using this potential, you can reach any heights.