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Candlesticks and Volume Positioning

&nb forex d forexrebatesbrokerscount brokersp; In the futures cashback forex, a new contract is created when a new buyer forexdiscountbrokers a new seller agree to buy or sell. The role of position size is somewhat similar to that of trading volume, and helps to measure the strength of the market behind price movements. The development of a price trend should be accompanied by a gradual increase in the volume of positions, and the focus of this section is to explain the importance of this point. Long positions are more active and aggressive than new short positions Rising positions show that there are both new buyers and sellers entering the market, but the new longs are more aggressive and bold because this group of new longs continues to buy despite the rising prices The other scenario is that prices are falling and positions are gradually building up, which reflects a strong belief on the bear side This is because rising positions show that If positions are rising in an uptrend, then generally speaking, the bull side takes the initiative and the upward trend will continue; if positions are rising in a downtrend, then the bear side takes the initiative and the downward trend will continue with Contrary to the above, if positions fall during the development of a market trend, it constitutes a signal that the trend may not be sustainable Why? Because a fall in positions indicates that market participants who were holding positions must be closing them out and abandoning the market. In theory, once these old positions are closed out, the driving force behind the current market movement will be dissipated. Take advantage of the opportunity to hedge their positions) wait until the original group of short sellers fled the market, then the driving force behind the above upside (i.e. short buying to close positions) also disintegrated, which means that the current market is more fragile and prone to induce further weakness We may use an analogy, suppose there is a forexbonusrebate pipe connected to the main water line between the main water line and this water pipe installed a faucet rising position is equivalent to open the tap, from the tap line to the water pipe into the tap water then, as long as the tap is open, there will be a continuous flow of water from the inside of the water pipe (which is equivalent to the amount of rising positions to be pushed further up or down the price) falling positions as if the tap is closed at the beginning, there is still water flowing out from the inside of the water pipe (because there is still some leftover water inside the water pipe), but once But once all the leftover water drips out, there is no longer a new source to maintain the flow of water as a result, the water flow (equivalent to the price trend) will dry up;
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