Structure of movement of the prices

As much as possible objective estimation of the trader can be received using a method of a constant estimation of current results. We don’t talk about weekly or daily summarizing as it is an absurdity. It is necessary to estimate results of the trader on “the finished movement of the market”.

It is important to be specified with structure of movement of the prices. Fractals can render the essential help in it. Any movement of the prices in the markets occurs in two directions: movement on a trend and recoils. Movement on a trend we name “impulse”, and recoil can be “recoil”. Each trader dreams, that the impulse was stronger, and recoil was insignificant.

A difference between values of a gain of the price in an impulse and its falling at recoil we call “lever”. It is obvious that, the more is the lever, the more considerably is a current profit of the trader. At the zero lever of the price has returned on former level and at negative the trader receives a loss. The offered reasoning is fair both for bull and for a bear market. Set of an impulse and the recoil giving the lever, also we will consider as a fractal. Actually the fractal is “an elementary particle” in structure of the prices. The period of forming of a fractal can be various, therefore break movement of the prices for strict calendar frameworks it is not possible. It is important to estimate the fractal lever – objective change of a price level.

Objective estimation of the trader

Probably, a method of fractals is not the best method to estimate possibilities of the trader. Probably, there are other algorithms, but the purpose of the offered technique is to create universal criterion for an estimation of results of trade on any exchange platforms and any exchange tools.

Anyway the estimation of results of the trader should be reduced to following steps.

Market movement of the prices of any exchange tool (the share, the bond, currencies) it is necessary to set structure, a method of fractals is one of the most simple.

At the analysis of results it is essential to neutralize shoulder action. In an ideal the trader should trade only the sum of the initial deposit. Absence of a credit shoulder will allow estimating objectively results, not very well on what the trader specializes.

The Analyzed period should include not less than five “elementary particles” movements of the schedule of the prices.

What advantages are given by the offered approach?

It allows estimating as much effectively if the trader uses the possibilities given by the market. Its efficiency is actually estimated.

It states an objective estimation irrespective of used exchange tools. For example, the currency speculator who has received 200 % of profitableness can appear more poorly the trader trading bonds with profitableness of 10-12 %.

Refusal of a calendar binding allows excluding accidents in an estimation of results.

Estimation of results with application of fractals gives the chance to lead current monitoring of work of the trader.

Even if the trader shows negative results, there is a possibility to estimate as it resists to adverse movement of the prices.

People who took the decision to participate in forex trading must start from learning the basics of this market to make sure you do not have problems with this industry.

There is another option – you can hire experienced traders to do this job for you – read more about forex investment here. Also make sure to search for the knowledge in a good forex book.