How the market moves (up and down)

In the article, we will discuss the movement of the market up and down through the following points:

• How the price moves
• What types of waves
• Why the price moves in waves
• Practical example
• The psychological idea behind the price movement
• Usefulness of motion in waves

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• How the price moves
  The price moves up or down in waves, so the price can only move in a straight line

• What types of waves
  The waves consist of two main parts
  1 - Impulse Wave is the main wave that drives the price higher when ascending or down in case of a decline
  2 - Corrective Wave is the secondary wave of profit taking

• Why the price moves in waves
  The price is moving in waves due to an imbalance between buying and selling (buy or sell)

• Practical example
  (The movement of the Bitquin / Dollar) of the day (July 16, 2017 - September 2, 2017)

To move the price from point A at $ 1,800 to point B at $ 5,000 the price moved up through 5 waves including 3 waves and 2 corrective waves
But why did the price move so?

• The psychological idea behind the price movement
  At point 1, the price was appropriate for the purchase and therefore a purchase occurred that pushed the price from point 1 to point 2 (Impulse Wave)
  At 2 point there was a sell-off which led to a 3-point correction (Corrective Wave)
  The movement from 1 to 2 caused many to wait for the price to fall under the control of two types of sentiment (regret not to catch up with the bullish movement - and fear of losing the opportunity to buy and move the price higher without them)
  At 3 point the majority decides to buy under the control of regret (and fear of losing the opportunity) and without waiting for further downside, pushing the price higher up to point 4 (Impulse Wave)
  At point 4, profit taking occurs by selling the price down to point 5 (corrective wave)
  At point 5, buying once again under the influence of feelings of remorse and fear of losing the opportunity to those who did not enter previously at point 3 in addition to the feelings of (euphoria and greed) of the former buyers rise to point 6 (Impulse Wave impulse)

It is noticeable from the previous that the movement from one point to another was caused by an imbalance between purchases and sales
The increase in the desire to buy from the sale at point 1 created an imbalance, causing the price to push up to the point 2, which caused the increase in selling then buy to create a new imbalance pushed the price down at point 3 and so on

• Usefulness of motion in waves
  Movement in waves is considered a healthy movement because: -

1 - The market can not remain in the case of buying only and not only sale, the buyer requires a seller to sell him and the seller requires a buyer to buy from it
When buyers are significantly higher than buyers, the market reverses a bearish bias
When the percentage of buyers is significantly higher than the buyers, the market turns upside down to a sell saturation

2 - give continuous opportunities to invest in the market and enter into transactions again if not caught early (in the corrections)

3 - verify the stability of the market as it means no future or sudden collapse in the market

Conclusion:-
Wave movement is a normal movement in any market and is considered a healthy movement and evidence of market stability