Your welcome yorik. Its basically psychology and financial necessity. The players need to take profits at some time. The markets are thus alot more organised and alot less chaotic than people think. I did have an explanation for this phenomenon somewhere is some study literature i read years ago applying to stocks. But that can also be supply and demand also because there are only so many shares around, but in fx. there is no volume as such, though the same principals may indeed apply. Price does become exhausted though and buyer and sellers move in when this happens.Perhaps Phil might have a more conscise explanaton. It is good to discuss these things though because it teases out explanations and ideas, gets those little grey cells working!
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