Who is buying here?

Hello

Attached is a EURUSD chart in H1 TF. I am curious to know more about the black rectangle which is specified in the picture. As it is obvious we have a bear trend.

As we know every tick on the chart means that there is a buyer and seller for that specific price.

I want to know who is buying in those 5 consecutive strong bear candles and why? Of course the buyers are loosing money here so I want to know the reason behind this.

http://img502.imageshack.us/img502/6231/charta.gif

who isn't buying there? did you miss out on a bargain?

no really. who isn't? people going overseas. companies exchanging moneys. banks. someone playing a basket / diversity strategy.

if no one other than the bank is buying, then they are the buyers and will work out a way they can deal with it later if it puts them at risk.

you have to remember, always, that what you see is not what someone else might see. you see a downward market where the herd should be selling along-with to ride some perceived momentum or trend... but someone else might not be looking at the same chart as you, or might not even be looking at a chart.

there is always a market. who is buying and selling at any point at any time is a mystery and could be anyone.

Bottom pickers maybe.

or mayby scalpers ?
from every new bottom usually you can scalp about 3-10 pips up
a i do this sometimes but only with low stake because it is very risky!
or sometimes i have sell order from top but without closing im scalping couple pips from bottoms - why not?;p

Different timeframe traders and like nubcake said, companies & banks are still exchanging currency along with various strategies.

I know you mean though.. what daytrader who is looking at the 1hr timeframe would even think about buying in that rectangle. Aside from buyers' limit orders coming in the further it falls, then having their stop loss orders (market orders) hit; various winners are in turn covering their short positions w/ buy orders and taking profit from the fall. I guess you can ask why would anyone sell in that situation.

Please correct me if that sounds wrong.

You are right. Thanks for your information.

Actually I have the sell side of the market in my mind when I am asking this question. I know they benefit from bid-ask spread but at times that there is a strong down trend the price may never return to its current level (or maybe it takes really long to happen). So a liquidity provider that is selling in such a market obviously is loosing money (because of strong down trend).

But there is always a liquidity provider for (almost) any price of the market so that seems contradicting unless the liquidity providers can restore their lost money somehow which I don't know.

No lost money. They are very good at making money. Find out how they do this.