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The Main Direction

Making a decision for daily trading direction has an important role to reach a long term success. If you choose a correct trading direction, even with making mistakes in other factors of the trade; you will get profit with high probability. Otherwise, if the trading direction you chose is not correct, terrible results will be expected. So, even if you use other strategies for entering or exiting, knowing the strongest direction of market movement will have a great influence on your success or failure.

The intraday forecasts of Forecast City have 2 directions all the time: the main direction and the reversed direction.
The main direction shows the strongest and the most probable direction of the market movement for tomorrow!


In days the main direction of the price predicted is rising, we hope a short decreasing corrective wave starts but the support area of S1 prevents more diminishing of the price and causes to start the rising main wave. By entering the price into the S1, we are allowed to trade considering the Reward/Risk law.
Example:

 


For the days in which the main direction of the price predicted is rising, it is shown by a blue upward arrow above S1. In this case, the line S1 is also drawn in a thick form to remind one that it is the strongest line of the day.
Example:

 


As you know, there is some economic news with low or medium degree of importance released on many days. However, if the news is considerably different from the expected estimate of the market, it will cause swings that lead to a temporary break of S1. If the price passes S1, the last defensive line for buyers will be S2. There is great hope that S1 and S2 areas will prevent further decrease of corrective wave and the rising main wave will resume.
Example:

 


For the days the main wave of the price predicted is decreasing, we hope that a rising corrective wave has been started and the R1 area prevents more increase of the price and causes to start the decreasing main wave. If the price enters to R1, we will be allowed to trade considering Reward/ Risk law.
Example:

 


For the days in which the main direction of the price predicted is decreasing, it is shown by a red downward arrow under R1. In this case, the line R1 is also drawn in a thick form to remind one that it is the strongest line of the day.
Example:

 


As it is stated in the previous lines, some swings might be caused in the market by releasing some of the economic news which leads to the temporary break of R1. If the price passes the R1, the last defensive line for sellers will be R2. There is great hope that R1 and R2 areas will prevent further increase of corrective wave and the declining main wave will resume.
Example: