An idea that I adopted a while ago was that the forex market operates in a way that is in opposition to how traditional markets operate in relation to demand and supply.
My thinking was,and is, that the exchange market, unlike the stock market, can only survive if it always moves against the majority.Therefore ,the more buyers come into the market the lower price will fall until there becomes an imbalance. This obviously happens when stops are hit,turning those buys into sells, buyers can't stand the pain any longer ,relinquishing their buy orders which then become sells.This imbalance turns the market up which now attracts new sellers and we now have a new imbalance of more sellers than buyers and therefore price starts to move up.
The industry would have us believe that the exchange market moves purely on demand and supply, however as true as that may be , I suspect it may not be in the way many think it does.
Does anyone else share this view?
My thinking was,and is, that the exchange market, unlike the stock market, can only survive if it always moves against the majority.Therefore ,the more buyers come into the market the lower price will fall until there becomes an imbalance. This obviously happens when stops are hit,turning those buys into sells, buyers can't stand the pain any longer ,relinquishing their buy orders which then become sells.This imbalance turns the market up which now attracts new sellers and we now have a new imbalance of more sellers than buyers and therefore price starts to move up.
The industry would have us believe that the exchange market moves purely on demand and supply, however as true as that may be , I suspect it may not be in the way many think it does.
Does anyone else share this view?
Where price is now, it has been before, and will be again.