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Showing posts with label cause. Show all posts
Showing posts with label cause. Show all posts

Monday, April 23, 2012

The Law of Cause and Effect

The Law of Cause and Effect

The Law of Cause and Effect: “The effect realized by a cause will be in
direct proportion to that cause.

Consequently to get an important move there must be an important cause. that takes time to developeie if we trade within a range .. we are building a cause for the next effect! ,we may absorb supply while demand gets stronger then supply
(building a cause)we then breakout of that range to the upside (effect)
or we see that supply exceeds demand and demand gets exhausted within the
range .. then we see a down move ie break to the downside


so there has to be significant action to take place within that range in
order to break out or down.. and that effect is underlying of what
happened within that range..

here is a example of a breakdown (effect) after a range(cause) and what
happened within that range wich lead to the breakdown

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