How does the FOREX price move and who decides on the prices? | Page 2 | Forex Factory

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How does the FOREX price move and who decides on the prices?

  • #21
  • Sep 1, 2019 2:38am Sep 1, 2019 2:38am
The price is the perceived value of an asset. Markets move to adjust to a change in the perception of the asset's value. Also there is no conspiracy theory, the markets are democratic.
When you see it, BET big.
  • #22
  • Sep 2, 2019 1:30am Sep 2, 2019 1:30am
Quoting RickM
{quote} We need manipulation of the market to occur so I do give a flying FX. We would have less chance of being profitable if one big player could move the market 100 pips to hit their targets. TA rules would collapse because there could not be any logic reason for that move. But here is the real point to the Algo manipulating the market which we should relish. The Algo uses consolidation zones to encourage traders to move their stops closer to the price. It creates patterns the traders labels as a resistance price levels. The Algo’s goal is create...
Nice one RickM. Djamal's (aka FractalFreak) chart setups also show this so well and clear.
  • #23
  • Sep 2, 2019 11:48am Sep 2, 2019 11:48am
fantastic, this thread is the first question that every trader should ask himself and know him, until he does not solve it he should not go to the next learning steps,
as they have already said, it is not possible that in a world market everyone in milliseconds organize so that a price moves only those seconds and then remains stagnant as it would have died, or that they read a report as quickly as when they gave it It has moved. some paranormal phenomenon would be behind all that, it cannot be real, as much as it is not real that the free market exists
Confucius: the man who broke the mountain was the same man who started ...
  • #24
  • Sep 3, 2019 7:09am Sep 3, 2019 7:09am
Quoting alphaomega
The Forex market today is completely automated and most of the small intraday movements on tick level are random. International cartel of banks owns the market and the top 10-15 of them provide over 90% of the liquidity. The same banks are the major share holders of most central banks, where the central banks are members of BIS in Switzerland. This is the central bank of the central banks. They give the orders. Most likely BIS (or the shareholders behind BIS) own the secret...
Hi,

I like your sound and clear explanation which makes a lot of sense to me. I have been reading a lot of contents on fx market manipulation, particularly FractalFreak and George Aus contents where they heavily emphasize on this topic. However, as much as I agree with the rational behind the psychology/methodology presented, I could not find a way to apply it to my analysis.

What I have been trying to do is to look for tops and bottoms where it is likely that stops are accumulated beyond those levels, study how the market creates herd mentality and kill those trying to follow the directions aka "stop hunts". Apparently I am not smart enough to figure out why as somehow I could not get consistent results and it just makes me more confused.

You seems to know a lot on this, so would you be so kind to shed some light on what should I be looking for or what steps can I take to better apply these knowledge onto the market?


CR
  • #25
  • Sep 4, 2019 1:04pm Sep 4, 2019 1:04pm
Investopedia has a good article The Foreign Exchange Interbank Market by Kathy Lien Oct 19th, 2018
https://www.investopedia.com/article.../interbank.asp

"The elite group of institutional investment banks is primarily responsible for making prices for the bank's interbank and institutional clients and for offsetting that risk with other clients on the opposite side of the trade."
  • #26
  • Dec 31, 2020 2:13pm Dec 31, 2020 2:13pm
Quoting Brentrading
{quote} brokers prices are not all perfectly in sync. they do vary slightly it depends on which LP's (liquidity providers) they use for data feed. for example with my broker i trade on 2 different accounts one is an OTC acc. where i deal with the broker's dealing desk my broker takes the opposite end of those trades, those trades don't even go to the open market (most retail traders are trading that way). and my other acc is a STP (straight through processing) same as an ECN acc. those trades go straight through to the open market . now on both...
hi,
I just can't understand the stp kind of broker i searched the whole internet but I couldn't find my answer
don't we retail trader trade CFD's but the liquidity that the banks provide in the open market is the spot forex so how our CFD kind of order should be matched with this liquidity?
thank you in advanced
  • #27
  • Jul 3, 2021 7:04am Jul 3, 2021 7:04am
Who decides on the prices?
Banks, central banks, exporters, importers, investors, traders.
  • #28
  • Edited Feb 2, 2023 10:41am Feb 1, 2023 7:03pm | Edited Feb 2, 2023 10:41am
Quoting dkrock
... just like you would measure the height of everyone in school and develop statistics for tallest, shortest, and average; that is also how you should trade the market, by averaging the trades into sample sizes and measuring the direction and momentum of price against them. It is really not much different than how a sports announcer or coach knows the average performance statistics of the players and teams. If you create similar analysis tools for trading, you might have a chance of making profit. Hope this helps you understand how the market works...
I joined FF when I began trading so as all can see, that was in 2012. In 9 years, I lost about 7000 USD and downloaded technical indicators like a fiend. After taking a lengthy break from trading, I decided to programmatically smooth, manually record (with pen and paper), and analyze price data from a chart. Then I coded a bot based on my swing length and stop out statistics, tested it on the smallest live account possible in 2022, and then upon meeting my profit projections, increased my deposit one hundred fold in December of 2022. In January of 2023 alone, I have earned back half of my prior loss.

Although I do not share the full details of my strategy, the issue of who determines price is 100% irrelevant to it. How price is determined, and economic news are also irrelevant. Due to the aforementioned smoothing of price data, a large amount of market noise is irrelevant too. My bot's trading looks nothing like most human trading, including my own former trading, with regard to suppossed market tops, suppossed market bottoms, and suppossed support and resistance levels. This is why I have quoted what I feel is the most important part of dkrock's earlier post. Sadly, I can see that dkrock is now Gone from FF. It would have been nice if I had found dkrock's post earlier rather than coming to the same realization on my own a year or two later.

I now feel like I (or really, my bot) is not trading "against" anyone, and that there are simply numerical statistics for price smoothing, swing lengths, stop out lengths, trailing take profit methods, including probabilities of each and ratios among all. Although the trend was almost my end, statistics are my friend.
An ounce of profitable logic is worth a pound of efficient code.
  • #29
  • Feb 6, 2023 5:58am Feb 6, 2023 5:58am
generally people get this all wrong - they think because the price is flying up that someone smart is buying - they probably are, but that's not why the price goes up.

The purpose of a market is to bring buyers and sellers together - this happens at the price point at the current moment. if there are buyers and sellers then they make a deal - if there are no sellers or no buyers then the market must find them otherwise the market is not doing it's job.

Think about this:

If the market shoots up then the market is looking for sellers - read that again

if there were sellers then they would be filled instantly

if the market drops off a cliff it's because there are no buyers and the market must find them.

So this should change your perception - buyers and sellers meet at the current price - if there are no sellers then buyers cannot buy - price moves up until it finds sellers. the inverse is true for dropping market prices it's falling trying to find buyers. just because the market shoots up, don't think that everyone is buying - the truth is no-one is selling. would you sell if you had a rocket in your hand?
https://linktr.ee/Soultrader
  • #30
  • Feb 6, 2023 7:22am Feb 6, 2023 7:22am
VOLUME...VOLUME....VOLUME
  • #31
  • Last Post: Feb 6, 2023 7:32am Feb 6, 2023 7:32am
Quoting HairyHarley
{quote} My 11-year-old asked me this very thing last week! I'll send her this thread... :-))
11 year old daughter who trades, that's impressive. Technically around 15 now
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