How all charts work. The case of USDCHF.When you analyse charts, what picture do you see? Is this the type of a candle or the position of a moving average?Perhaps you prefer Fibonacci analysis alone? But are these techniques explain what really happens on the market and could truly predict what is going to occur?
Today we would like to show the true nature of every single chart and how forecast might be made without the use of indicators or tough mathematical calculations. To make that prediction you will need your eyes, open mind and understanding that each impulse is followed by another impulse after a period of correction.
In order for that Fractology will use the daily chart of USDCHF.
If we look at the chart we could clearly see three waves of correction (depicted with ABC) and an impulse (depicted with an arrow). The fact that the pair has broken out of a terminal structure on the final stages of wave C tells us that it will make an attempt to test the structure of a high degree. Correspondingly the break of that next structure will force the pair to take off.
Most commonly this analysis is known as a wave patterns analysis. It stipulates that at every time charts work within some wave structures on the "matryoshka" principle, repeating itself.
