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Aikido Strategy

 


"Aikido Strategy" is a concept we named in Price Action Analysis. In order to understand the strategy of aikido, we need to know the philosophy of the sport of aikido. The aim in Aikido sport, as in the image above; Despite the dominant power from the opposite side, it is to eliminate this pressure by using less force and to gain superiority to the other side. If we model this logic in price action analysis, we can briefly call it the empty-fill system.

Aikido strategy, in short, is the empty-fill system. It means that the initially dominant buyers will be replaced by the sellers in the next candle session, or the initially dominant sellers will be replaced by the buyers in the next candlestick session. That is, logically, it means that either the buyer (bull) or the seller (bear) party will lose their dominant power at the next candlestick and the power dominance will pass to the other side.

Aikido strategy often occurs where top or bottom turns begin. Because while the price is coming to the top, there is buying pressure for a while. Likewise, while the price is coming to the bottom, there will be selling pressure for a while. This situation lasts until the buyer or seller group arrives to change the direction of the trend. When the trend direction starts to change, buyers or sellers who cannot foresee it insist on their current positions. However, there is the other side, which is stronger, which can change the direction of the trend. It is at these moments that the "Aikodo Candle Formation" mostly occurs. In other words, it is the situation where one of the buyer or seller parties, who cannot foresee the change in the direction of the trend, so they are evacuated and the other party takes their place. At this time, a candle formation view is formed as in the image below. In this case, we understand that most likely the trend is changing. In this case, the ideal move is to arrange our positions accordingly.



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