Economic Question: Why is price affected by supply and demand? | Page 4 | Forex Factory

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Economic Question: Why is price affected by supply and demand?

  • #61
  • Nov 3, 2013 6:16pm Nov 3, 2013 6:16pm
Quoting eurotrash
{quote} . But you can definitely learn to read the order flow in the PA (to an extent), but it will always be \"conceptual\". However I would highly recommend opening a demo account at a futures broker so you can get a DOM/T&S and watch some market to see what is really going on when it moves and bounces and whatnot. Try out MarketDelta too. Even if you stick only with fx, it will still be useful in your understanding of markets.

Hey Euro, can you trade spot using a currency futures chart, do they move in the same way(mimic) each other?

Now Im guessing the volume would be reliable and there is no manipulation, stop hunting and all of that?

Tell how do you use volume, it seems to to two different things at the same time, you could see a large volume down bar which to me is indicative of high selling but then price could turn around right after that, its so subjective.
  • #62
  • Nov 3, 2013 6:17pm Nov 3, 2013 6:17pm
By the way thanks Euro for answering my questions. I will definitely look into that demo account for futures. Tonight.
  • #63
  • Last Post: Nov 4, 2013 12:37pm Nov 4, 2013 12:37pm
Quoting dappa
{quote} Hey Euro, can you trade spot using a currency futures chart, do they move in the same way(mimic) each other? Now Im guessing the volume would be reliable and there is no manipulation, stop hunting and all of that? Tell how do you use volume, it seems to to two different things at the same time, you could see a large volume down bar which to me is indicative of high selling but then price could turn around right after that, its so subjective.
Well personally I don't use volume like that, but I won't get into that. As for using futures volume to trade spot, yes spot and futures do move together to an extent I believe but I'm not sure what effect contract expiry/rollover has on the relationship. I don't know how much use the volume would be, since the fx futures contract isn't independent of the spot, and much of the volume occurs in the spot. You could always look into it and see what you think.
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