If more and more people long, is it likely moving up? | Forex Factory

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If more and more people long, is it likely moving up?

  • #1
  • First Post: Dec 7, 2006 10:15pm Dec 7, 2006 10:15pm
If more and more people buy EUR/USD or GBP/USD, is it likely moving up or down?
When I buy it, it moves down. When I sell it, it moves up.
  • #2
  • Dec 7, 2006 10:22pm Dec 7, 2006 10:22pm
It is like a bridge, with out enough support it will crumble under its own weight.


RSQ955
  • #3
  • Dec 7, 2006 10:33pm Dec 7, 2006 10:33pm
Quoting pujolshomerun
If more and more people buy EUR/USD or GBP/USD, is it likely moving up or down?
When I buy it, it moves down.

When I sell it, it moves up. <== well you answered it already .so the key is not other people.no matter how many lots and traders buy it..as long as u buy it too,then it come down (lol).you are the key bro <!-- / sig -->
  • #4
  • Dec 8, 2006 3:00am Dec 8, 2006 3:00am
Yesterday, Trichet signal the euro negative by his statements. By then, euro keep looking lower. Yet, today is friday, and NFP awaiting. I guess, euro will move lower and dollar will have its support pre-news realease.

I'm currently short the eur/usd
Hello World
  • #5
  • Dec 8, 2006 4:57am Dec 8, 2006 4:57am
You will leave your open position till the news release? or you'll close it and open again when the news release?
Cheers

Quoting waf_1988
Yesterday, Trichet signal the euro negative by his statements. By then, euro keep looking lower. Yet, today is friday, and NFP awaiting. I guess, euro will move lower and dollar will have its support pre-news realease.

I'm currently short the eur/usd
  • #6
  • Dec 8, 2006 5:07am Dec 8, 2006 5:07am
Quoting parlenk
You will leave your open position till the news release? or you'll close it and open again when the news release?
Cheers
I will close it firstly before the news out of course... But, you can trade your own plan if you are eager to keep it on (maybe it favours your way)
Hello World
  • #7
  • Dec 8, 2006 5:56am Dec 8, 2006 5:56am
I just closed mine several minutes ago.i think save the pips first and then seek for another..eventhough strong signal for gbp to go down but i'll watch it for a while now.good trade everyone.

Originally Posted by pujolshomerun
If more and more people buy EUR/USD or GBP/USD, is it likely moving up or down? <== yes..rite.it's a demand and supply rule.but be carefull.some powers can instantly change it when they enter the market with high volume of trade.



Quoting waf_1988
I will close it firstly before the news out of course... But, you can trade your own plan if you are eager to keep it on (maybe it favours your way)
  • #8
  • Dec 9, 2006 3:12pm Dec 9, 2006 3:12pm
As far as people buy the currency, the currency moves higher. But on the other hand, when everybody wants to buy, the market moves nowhere. Simply, in this case, there is nobody to buy from and there is no fuel then.
As you can hear elsewhere in the books: To make market to move, there is discrepancy on value, but agreement on price needed. Then someone could sell and hope it will go down and someone could buy from him and hope that it will go up.
I hope this will be helpful for some newcommers, who bet the name of the thread seriously.

Quoting pujolshomerun
If more and more people buy EUR/USD or GBP/USD, is it likely moving up or down?
But otherwise, it's a good joke!;-)
Thanks & Nice day!
  • #9
  • Dec 10, 2006 9:44pm Dec 10, 2006 9:44pm
The way I think of it is; if everyone is long there's no one left to buy so the price collapses until new buyers are willing to step in. I like the bridge analogy too.

Another way to think of it is there's two sides to every trade. For every long there has to be a short. If everyone is long what happens? I'm not sure, I guess the price shoots up sky high and then it crashes back as sellers step in to sell high so they can later buy low in combination with the longs rushing to exit their position.

Maybe someone else can explain what happens when everyone is long. (or short)
How you act is more important than how you feel.
  • #10
  • Dec 10, 2006 11:13pm Dec 10, 2006 11:13pm
Markets change direction because of the pressure (buying/selling) has eased in the direction price was going. In-other-words if a market is dropping and then bottoms and starts back up, it is because selling has abated. Then once it starts back up if there is renewed buying it will move faster and stronger.

If the selling pressure abated only momentarily downtrend will resume.

But if instead the buying pressure started to rise after hitting bottom then that will push price higher till it abates again near a top.

Easing selling pressure at a bottom/buying pressure at a top is what causes the turn. Then the additional volume in the direction market has turned pushes it further.
  • #11
  • Aug 19, 2007 4:37pm Aug 19, 2007 4:37pm
It depends on who's longing and who's shorting.
Take a report.
  • #12
  • Last Post: Aug 19, 2007 6:20pm Aug 19, 2007 6:20pm
Quoting Warmagus
Maybe someone else can explain what happens when everyone is long. (or short)
When everybody's long? Nothing - it implicates that nobody wants to sell, so no price action.
As it is said above: price level is determined by price action (->buy/sell).
No price action, no move!
Thanks & Nice day!
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