As prices are formed in the FOREX market

On short-time scans (intraday trading) within one. Cycle in the process of pricing in the market FOREX observed systematic bias. How it can be effectively used in trading - described in the article.

On Fractal and market efficiency

As you know, pricing on FOREX can be described using the theory of fractal market, which was a logical extension of understanding of the efficient market [1-4]. Let me remind you that in this theory compares the "truth" (estimated) price of an asset to its market price. The problem is, how much and how often the market can underestimate or overestimate an asset. A trader who has discovered or underestimate market asset would be able to risk-free profit. Efficient market hypothesis tells us that this is impossible. Indeed, in the course of the test asset laid almost all the available information to market participants. It follows that the observed exchange rate fluctuations should be random, and no one can predict the market price. The existence of the market as a stable system with liquid assets necessary to carry on its trade. Foreign exchange market with its fractal structure of the normal probability distribution of price changes on intervalevremeni chosen depending on the volatility of the market, and regardless of the depth of the investment horizon - is a stable, self-regulating system.

Since the market involves a lot of investors with different investment horizons, the crash or panic on one investment horizon will be absorbed and mitigated by other horizons. Each market participant has an investment horizon and decides, in accordance with the duration and the expected behavior of the market at a specific time period.

However, if the market had the same investment horizon, he would become unstable and illiquid. Lack of liquidity in the market creates a panic. Thus, the source of market liquidity - investors with different investment horizons, different conclusions on technical analysis (or different interpretations of the fundamental information) and, therefore, have a different understanding of the investigated asset prices.

Since market prices are constantly experiencing fluctuations, then, according to Soros, market equilibrium in life is very rare. [5] Supply and demand curves correlate HE only among themselves but also with the mindset of market participants, which may, in turn, significantly affect these same curves.

Decisions about purchases or sales are made based on expectations of future prices, which, oddly enough, are largely determined by these decisions in real time. All this is to a large extent resembles the amplifier with positive feedback. Projections and actions of market participants <random> price fluctuations serve as the self-fulfilling prophecy.

Expectations and price fluctuation amplitude

The role of expectations in recent years has increased markedly because traders the opportunity to work with a large bank on the shoulder of many segments of the financial market. Amplitude fluctuations of the prices have increased due to the possibility to instantly attract notable capital markets and manage <circuited> online intraday trading. In this situation, there is no guarantee that the <basic> drivers will manage and extinguish such fluctuating price hikes.