Introduction to PriceMotion Lessons
We offer free online lessons for PriceMotion software users. You can learn about Indicators, Market Parameters, and Patterns; test your knowledge using PriceMotion software.
Market Parameters
Crowd Reaction - summary action of the different Market groups (Leaders, Followers, and Strangers). This curve represents the general mood of the Crowd (Mass Psychology).
Current Trend - quality value of the current Market Price Motion. There are five types of trends - Bullish, Small Bullish, Neutral, Small Bearish and Bearish.
Market Scale (Stability) - Current Market stability.
Price - is whatever the crowd of traders say it is at any given moment. Prices reflect reality, as seen by masses of market participants. Prices are determined and established by crowds of those who make buy and sell decisions. "Supply and demand curves" are removed far from the sweaty reality of the market crowd. Prices are connected to fundamental values in the long run but are governed by crowned psychology from day to day. "Each price represents the consensus of value among the mass of market participants at the moment of the trade." (Dr. A. Elder). In PriceMotion Model, price movement is a sum of three curves ( Leaders Way , Followers Motion and Strangers Signature).
Price Velocity - first derivative on the Price Chart. This curve shows us how fast price is moving on the one or another direction.
Market Disturbance - quantities characteristic of the simulated Economical news, Political news, weather ... etc. Negative disturbance represents bearish news. Positive disturbance represents Bullish news. Range of changing: from -10 (Strong Bearish Disturbance) to 10 (Strong Bullish Disturbance) .
Trade Volume is the total number of contracts traded during the some period of time. Volume represents the total trading activity in a specific period for commodity or financial instrument.
"There are three ways to measure volume: the number of contracts or shares traded, the number of trades, and the number of price changes. The first method provides the most accurate reflection of the market activity." (Dr. A.Elder)
A trendline is a sloping line that is drawn between two or more prominent points on a chart.
Rising trends are defined by a trendline that is drawn between two or more troughs (low points), to identify price support .
Falling trends are defined by trendlines that are drawn between two or more peaks (high points), to identify price resistance .
Indicators
List of Indicators available on PriceMotion software -
Bollinger Bands
Exponential Moving Average
Exponential Moving Average 2 lines
MACD
Momentum
Moving Average
Moving Average 2 lines
Parabolic TS
RSI
Stochastic
Williams %R
Detrended Price Oscillator
PriceMotion software allows you to insert different Indicators on different windows - Intra-Day, Daily and Weekly.
Patterns
PriceMotion software can create all the following patterns. On the Chart you will see Enter point, 1 st Limit, 1 st Correction, 2 nd Limit, 2 nd Correction, Break point and Exit point.
Simple Triangles
Symmetrical Triangles
- Symmetrical Ascend Triangle
- Symmetrical Descend Triangle
Rising Wedges
- Rising Wedge in Up Trend
- Rising Wedge in Down Trend
Falling Wedges
- Falling Wedge in Up Trend
- Falling Wedge in Down Trend
Flags
Pennants
- Bullish Pennants
- Bearish Pennants
Rectangles
- Bullish Rectangles
- Bearish Rectangles
Head and Shoulders
- Bullish Head and Shoulders
- Bearish Head and Shoulders
