The LAW OF TOTAL PROBABILITY ll

At times the Law of Probability do apply, knowing 'how to' is equally as important as to knowing 'when to' use the application in certain market conditions.

Being able to fundamentally relate marginal and conditional probabilities are essential to the equation; as market conditions changes at the same time that prices do. The process to achieve a higher degree of projected price accuracy comes by adding the next three methods to find where the price levels would be heading at. This is where going beyond charting and price action analysis goes hand in hand with market behavior.

This method only applies at certain market conditions where the we have found one of two applicable trade set-ups  on the decline and a cross rate still in the making. A clear example was the JPN225 @14770 and the USDJPY @110.97 on the massive decline. Where a price alignment have been identified which we have anticipated a reasonable correction currently reflected by the recent price recovery.


Refer to Link: Price Alignment Validated on Decline