Hello and happy new year everyone.
Newbie trying to learn so bear with me.
I have questions, would like to hear your opinions.
So first question:
Books and trading websites say that currency pair charts go up/down because:
1.There is more buyers/sellers
2.One of the currency appreciate/depreciate.
They also tell us that if currency pair doesn't move much in any direction (stays flat/range) it means that both currencies in that pair is equally strong/weak.
So... Here is a thing
Let's look for example at Gbp/Usd during the London session(only London till the New York opens).
Gbp/Usd goes down.
According to what books and websites tell us it's because:
1. More people sell GBP.
2.GBP depreciates(I don't think USD can appreciate during London session)
And now finally the question.
How can it be that there is more sellers?I mean those "Big boys" who want to sell big amount of GBP need somebody to buy from them at that point of price. If they got those buyers according to market theory price will not drop significantly... On the over hand if there is little or no participants willing to buy at that price-it will drop until buyers will be happy to buy at lower price which in turn will mean that initial seller will get his sell at much worse price which doesn't make any sense...
Is my logic flawed?
Newbie trying to learn so bear with me.
I have questions, would like to hear your opinions.
So first question:
Books and trading websites say that currency pair charts go up/down because:
1.There is more buyers/sellers
2.One of the currency appreciate/depreciate.
They also tell us that if currency pair doesn't move much in any direction (stays flat/range) it means that both currencies in that pair is equally strong/weak.
So... Here is a thing
Let's look for example at Gbp/Usd during the London session(only London till the New York opens).
Gbp/Usd goes down.
According to what books and websites tell us it's because:
1. More people sell GBP.
2.GBP depreciates(I don't think USD can appreciate during London session)
And now finally the question.
How can it be that there is more sellers?I mean those "Big boys" who want to sell big amount of GBP need somebody to buy from them at that point of price. If they got those buyers according to market theory price will not drop significantly... On the over hand if there is little or no participants willing to buy at that price-it will drop until buyers will be happy to buy at lower price which in turn will mean that initial seller will get his sell at much worse price which doesn't make any sense...
Is my logic flawed?
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