Tuesday, 21 September 2021

Candlestick Trading Using Fundamental Laws of Motion

A candlestick is a representation of human behaviour which can be expressed using mathematical principles which philosophically explains how humans behave naturally.
There are three laws:

I. A human will remain at rest or in constant motion unless being acted upon by an external force. This is called liquidity zone.

II. The force on a candlestick equals its rate of change of momentum. This is Breakout.

III. For every action, there is an equal and opposite reaction. This represents how far the price of a security will travel.

And all these were revealed by Isaac Newton in the year 1967.


N.B: A Read of the previous blogposts on Trading will smoothen understanding of the above.  

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