Market theory - page 123
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Or rather, from 25 05 to 27 05. I will now check by repeating the calculations, perhaps the market was monopolised in that period.
That's it. The reason is cleared up. On Friday, 22. 05. the pound market was a normal competitive market with two breakeven levels, located at a decent, or rather, at an unacceptable distance from each other (over 700 pips). The market, under those conditions, could be very volatile and cause serious damage to the economies of the Eurozone, especially the USA and/or Great Britain:
By Monday, 05/25, the market had just narrowed from 700 to 14 pips, approaching a Zugzwang, the Bulls and the Bears were almost out of the picture, the Leo took over and went down to the abscissa, establishing a third level, a global break-even, which I suggested was theoretically possible. This type of market is set up in exceptional cases, where there is a real threat of market and economic collapse. I haven't even coined a name for it yet, but it could be tentatively described as "ultra-monopolistic" or "state-owned". , "state", "emergency", "forced", "correcting errors and/or lapses in market, state or economic management" or something along those lines. I will study the situation and come up with a proper and adequate name for the situation:
By the way, this state of the pound/dollar market continues to this day.
So you still haven't answered how a trader should behave in such a situation, when the lion goes up and the price goes down. First of all, when analyzing the situation you must specify what a trader should do: in the market or out of the market, if in the market - buy or sell.
So you have not answered how a trader should behave in such a situation, when the Lion goes up and the price goes down. Wait for the price to go in the direction of the Lion?
Such inconsistencies in the nature of Price and Leo level movements I have identified so far, 3:
1. When the market is monopolistic, when the calculated profit line resembles a bowl;
2. When preparing for Bulls and Bears battles, as well as, in the course of these battles;
3. In preparation for the transition to an exceptional form of market organisation, when the market is organised by the Lion around the 3rd, global, break-even level, with disenfranchisement. Bulls and Bears, to lead the market. and all power is concentrated at the Leo level.
In such cases, which are few if compared to the calm state of the market, it is better to act as you suggest and wait for the price to go in the direction of the Lion in the "Out of Market" mode. But even if we sometimes make a mistake in identification of these market conditions, nothing bad will happen, except that we will lose a little. Worse, when we do not obey a Leo - here the losses can be significant.
You still haven't answered how a trader should behave in a situation where the lion is going up and the price is going down. First of all, when analysing the situation, you must specify what the trader should do: in the market or out of the market, if in the market, buy or sell.
Such inconsistencies in the nature of Price and Leo level movements I have identified so far, 3:
1. When the market is monopolistic, when the calculated profit line resembles a bowl;
2. When preparing for Bulls and Bears battles, as well as, in the course of these battles;
3. In preparation for the transition to an exceptional form of market organisation, when the market is organised by the Lion around the 3rd, global, break-even level, with disenfranchisement. Bulls and Bears, to run the market. and all power is concentrated at the Leo level.
Therefore, in these cases, which are few compared to the calm state of the market, it is better to do as you suggest - wait for the price to go in the direction of Leo in "out of the market" mode. But even if we sometimes make a mistake in identification of these market conditions, nothing bad will happen, except that we will lose a little. Worse, when we do not obey a Leo - here the losses can be significant.
It is amazing how precisely you and I have chosen to return to this question. In fact, it took me a very long time to think of the right answer. As a rule, I never ignore adequate questions from participants, but sometimes I think long and hard about the right answer, as I did with Alexei's question.
If you formulate terms of reference for programmers as in point 2 and 3, you will never get a software product).
Then, it is better to choose the option of always following the direction of Leo, and write off losses to the costs of TC, especially they are insignificant, as the analysis for 2 years has shown:
Then, it is better to choose the option of always following the direction of Leo and writing off losses to TC costs, especially as they are insignificant, as the 2-year analysis has shown:
So you expect to always be in the market?
If you formulate your terms of reference for programmers like in point 2 and 3, you will never get a software product).
Yury, you certainly understand that the East is a subtle matter!
The programmers there are the same - can - image... :-)
Then, it is better to choose the option of always following the direction of Leo, and write off losses to TC costs, especially they are insignificant, as the analysis of 2 years has shown:
Yusuf, because already written mountains, rewritten, that a chart without a basement is at least a mauvais ton.
It also doesn't carry any meaning...
Maybe there's an equity drawdown of about 90 per cent or more and MO around the spread...