The mysterious tool of the Wall Street financial markets - the line of least resistance
We know that prices will r Forex Rapid Rebatee or fall depending on the rebateforexfee encountered To explain it succinctly, we can say that prices, like everything else, move along the line of rebateforex resistance They will always come how easy it is, so if the resistance to rise is less than the resistance to fall, the price will rise, rebateforexbroker vice versa Sounds pretty easy You just need to observe the ForexRapidRebate trend, establish the resistance level, and once the minimum resistance line is identified, immediately follow it to make a deal I. Minimum resistance line The principle of minimum resistance in nature The rule of nature is to follow the path of least resistance All matter runs along the curve of least resistance track and the river does cashback forex need to plan its own route, but without exception to reach the ocean Why? Because just two conditions are enough to make things happen: water flows downward: the direction is clear path of least resistance: flexible and endlessly changing energy movement will find its way ---- principle of least resistance, downstream, the wind is the highest level…… people in the process of doing things instinctively will choose a path of least resistance to complete what they want to accomplish No matter what, all things being equal, people always choose the path of least resistance, the best way to go I call it the law of least resistance Whether in life or in business, the law of least resistance also works Follow the trend to find the path of least resistance is a quick way to success For the conduction of electricity, the flow of water, or the car (market area), the rules of nature is to follow the path of least resistance. Unfortunately, nature does not easily tell us the path of least resistance Second, the three principles of market energy 1, energy will always follow the path of least resistance The movement of the price of securities is like the flow of water: will always follow the path of least resistance This is not the unique nature of the market, we - you, me, and everything in nature ---- is the same, this is the nature of nature river water downstream, the path of least resistance will determine its behavior gravity makes the river swirl around by the rocks and bend along the riverbed you currently choose my article to read, read this passage because --- after you weigh all the factors --- this is the path of least resistance in the market, you feel the pain of adding another dollar to the loss is greater than the pain of admitting a loss when you get out of the market, or follow the path of least resistance 2, there is always a usually invisible underlying structure, this structure determines the path of least resistance The underlying structure of the riverbed determines the behavior of the river If the riverbed is wide and deep, the river will flow calmly; if shallow and narrow, the river will flow rapidly Exploration of the underlying structure of the riverbed, we can predict the behavior of the river fairly accurately Suppose you want to go to the bathroom in the hotel lobby, you may spare a few tables Instead of taking a ‘straight line’ approach, because you know that the table may bruise itself towards the restroom, you will probably not notice that your behavior is determined by the engineer who designed the restroom, the corridor and the location of the guests, which determines how you arrive and the way you arrive In other words, the engineer determines the fundamental structure of the hotel Similarly, your The fundamental structure (whether you perceive the existence of this structure or not) will determine your behavior and your reflection of market trends The fundamental structure of the market will determine the direction of market prices As a trader, you must be clear: you cannot deviate from the path of least resistance If there is tension and pressure in a trade, you are not ‘going downstream’ Once you understand what the Once you understand what market structure is, and become one with the behavior of the market, you can ‘like a butterfly’ dance in the market 3, this always present and usually invisible fundamental structure, not only can be found, but also can be changed You can not use a bucket to change the watercourse of the river (or the trend of the market) However, if you go upstream and find the origin of the river, you may only have to move In many cases, a small change in the cause can lead to a significant change in the outcome. The concept derived from the above three principles is that you should first learn how to identify the underlying structure that dominates your trading behavior, and then change or conform to that structure according to your trading objectives. They have the tendency to change from one condition to another In each case, its fundamental structure will determine the change, if you are old enough to understand that the market will always be alternating bull and bear, cycle cycle, this is the law of nature natures interstitial pain, the mystery is to curb anything unrestricted indulgence, so as not to end up with a one-time extinction More long and glorious extreme bloom market, but also eventually can not escape the cycle cycle This is common sense, so the adjustment will certainly come, and then the big man can not stop the adjustment itself means moderation, digestion and budding renewal Never the original existing interest groups want to adjust, but the power of the law you can not stop who do not want to have a bear market, but it came, to play a role, to the past crazy and unreasonable correction is often overkill, because the trend exists inertia, inertia means solid. So you have to be as patient as possible with the adjustment, to be tolerant, to be calm, to be fully cautious If you are old enough, you will see a bear market, will always fall to where we did not expect, so patience is necessary, down is the water, because this is the least resistance Survival of the fittest, the strongest, every bear market is the same, the survival rate of people with moderation is always greater than the frivolous people this The first principle of stock movement is to follow the principle of least resistance what is meant by least resistance, least resistance is fluid that must rise; after the breakthrough, must be fast to get rid of the accumulation area, brisk and momentum to deepen the development of our buy shares is to find the minimum resistance of the critical moment where the rise it does not rise, coy, twisted, chaotic, up and down, you do not want to participate, so as not to get caught in the mire. To avoid getting into the mire resistance principle has a subsidiary rule, that is, what should happen and not happen, must be vigilant, and reverse thinking, for example, a stock in the market with, sufficient volume, class stock linkage, form also into the case, the rise but not up, or up very weak, then we must be careful, there must be a problem if a stock more than a month of fierce battle between the air, and finally multiple upward breakthrough with absolute advantage, and then actually And back down to the original war zone, that should be vigilant, to consider reducing positions to exit the field on the contrary, if the market is dominated by the short side, breaking important gates, one-sided downward momentum, actually appeared to release volume up, return to the top of the gates, then you have to consider entering, at least this is the first signal of the bottom confirmation Fourth, the path of least resistance and follow the trend of the path of least resistance this phrase should be no stranger to capital market participants, the market always Choose the least costly way to run Path, refers to the road to a target world has a thousand roads, but there must be a minimum resistance path resistance does not mean a straight line or a shortcut, this truth and the Yangtze River into the sea, the river is washed into nine curves is the same in a certain period of time, whenever the market trend and someones position opposite, then it must be someone wrong, not Mr. Market is wrong the greater the contrast, the more people are wrong, more than the stop-loss point, you have to correct the mistake and start again The famous saying of follow the trend is estimated that eight out of ten market participants know, but I do not know how many people do the fact that the speculative market is 7 loss 2 flat 1 earn the law, it seems to be able to do with the trend is less and less people tend to catch the trend in the early or mid-term, make money, followed by the end of the trend in The end of the trend to enter again, or do the opposite direction, not to protect the late, all back to the market In a certain period of time, the place of least resistance is the direction of the potential of this period of time, the reverse is like a mantis, the obedience is vast in the market, the banker into the situation can not come out everywhere, this banker self-indulgent stock for ordinary investors really a little difficult to identify the trend of true or false, there is no eye for gold or How to judge where the least resistance? Relatively simple for the market, because there are only two directions, than choose the road of life seems to be much simpler The most intuitive judgment is that when you feel wrong, turn around after the direction is the direction of least resistance, if continuous error in judgment, then exit is the right choice in a flash you secretly feel bad, is the best time to correct the mistake, the first time you feel Late when its time is often not too late The colorful out of the world is that everyones ideas are different, different from the pursuit of differentiation in the market will lead to people consciously and unconsciously choose the path of resistance is not the smallest example of overestimating their power and judgment abound, even the error correction master Soros can not be an exception, not to mention mere mortals like me Let us appreciate the colorful at the same time Five, follow the trend and price resistance to the line of least resistance carefully read the American Edwin Lee Feiffer wrote the classic book of stock and futures speculation 〉 investors will know that JesseLivermore repeatedly stressed a point is that the price is only along the line of least resistance, which is also the essence of his trading system JesseLivermore also does fundamental analysis, capital analysis, price behavior analysis, and even investment psychology analysis before making trading decisions, but all of his research and analysis ultimately comes down to establishing the path of least resistance. In fact, the purpose of any analysis done by investors around the world, including technical analysis, is to establish the path of least resistance, I just want to mention two points: First, respect the market, let the market establish the path of least resistance, and reduce the subjective guessing component. Only if we respect the market and establish the least resistance route, the market will respect us and our trading will be successful. Sixth, stock prices always run in the direction of least resistance.