Marriage of Kijun Sen and Price!

The best illustration of the point of this blog is an anology of a husband/wife relationship where the husband is “whipped”.
When the husband is “whipped”, basically his wife is in command. When she tells him to do something, he willingly proceeds forward in doing everything she wants in order to please her. Majority of the time, he does not say anything to her even though he may disagree with her. As a result, he is always obliging her.
Once in a while, he will stand his ground. At that point, he will argue with his wife. Sometimes, he will win but sometime he will not. It just depends on how much he “pushs” his wife.
The relationship of the Kijun Sen and Price is the same. Majority of the time, Kijun Sen dominates the price. However, price will dominate the Kijun Sen ever so often where it will have to come to price. In some cases, they will comprise and move towards each other at the same time.
A perfect illustrate of this is the EURCAD trade on 4-25-07.
Therefore, always be cautious of this relationship when trading.
For EDUCATIONAL USE. Commodity Futures Trading Commission, Forex, Futures, Equity and options trading has large potential rewards, but also large potential risk and may not be suitable for everyone. You must be aware of the risks and be willing to accept them in order to invest in these markets. Do not trade with money you can not afford to lose. This is neither a solicitation nor an offer to Buy/Sell. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this document. The past performance of any trading system or methodology is not necessarily indicative of future results. All information provide d on the Blog is for educational purpose .

About the Author Manesh Patel