Why / How / When does the forex market move ?

[Ex Trader]

Why, How and When, these keywords are widely known by interlotutors and communicative persons to clarify something up in their subject of descussion, in this thread I will use these keywords to talk about the forex movement to understand more this market and improve our trading style.

Why does the forex market move ?

Every trader seems ask this question when he watch his charts and wonder why this market move upward or downward from point A for example to point B, the answer is the imballance beteween buyers and sellers getting this market in a specified period.
the market is moving upwads in the case we have more demands than supply and the opposite is true for downwards too. this can be the answer of price action traders.
the fundamentalists see that this maket move only because of the news and nothing else except news, isnt it?.
I guess both of news and imballance of participants make this market move every single day. that's a "WHY" question we need to understand first.

How does the forex market move ?

the answer to this question is very usefull to understand more about the currencies pairs you're trading, every currency pair has its own caracteristics, it can be its open/close session, its daily range and the time of formation of its highs and lows, reaction around its supports and resistances levels, ... every currency pair differe from the others by these caracteristics, therefore, it's wise to study more your preferable currencies before trading this market.

When does the forex market move ?

forex market is fair to its currencies, the open session is the ideale time that these currencies move frequentely, and it's when you will see pure price action and more liquidity.
the other aspect when the market move is aside fundamental news, when these news realease, you can expect a real movement of the market, the news play a crucial role in forex to consider in our trading process as you know.

[Ex Trader]

there are some tools in the net which you can measure the market sentiment, and it's rarely used in forex, these tools can detect in specified currency pair, the number of buyers and sellers are getting in the market in that time, therfore the dominant in the market, it can also inform you about where most traders are placing their stop losses, if you know these informations, you will get better decision on how you get in the market.

[Sylvertee]

This is the market that is moving based on several activities, but I still will never believe that the market is not highly manipulated by some set of powerful people and players as well. The market has to be ordinarily working with the principles of demand and supply, but I suppect that there is more to that because of some market behavior.

[Ex Trader]

This is the market that is moving based on several activities, but I still will never believe that the market is not highly manipulated by some set of powerful people and players as well. The market has to be ordinarily working with the principles of demand and supply, but I suppect that there is more to that because of some market behavior.

unfortunately, big players and powerful investors exist in forex trading and can drive the market relatively in any direction they want, there is a specific times when these particulars participants get in the market and make a move the price likely in the direction they want, whatever is happening, traders should rely on their own analysis and trade according to their understanding of the market mouvement.

[Vicko]

[lang=id]

unfortunately, big players and powerful investors exist in forex trading and can drive the market relatively in any direction they want, there is a specific times when these particulars participants get in the market and make a move the price likely in the direction they want, whatever is happening, traders should rely on their own analysis and trade according to their understanding of the market mouvement.

That is correct and they will most likely manipulate the forex market quite a lot. In this regards, we need to always get some kind of insider information if we wish to survive from this business naturally. Unfortunately, not all traders got this kind of connection and that is why they need to mind their own risk whenever they are trading forex. That way we will be able to survive longer.[/lang]

[sameeh]

market movement is not random but it is predetermined by the big players that can move the market in the way they want, so we should follow these big players in trading to be able to make money, and should not go against them, and also we should trade carefully and use stop loss to avoid the traps of trading and protect our money always from going away.

[superfx]

Yes, market moves upward direction in uptrend and this is continue as long as the demand for the market is high and the supply is supply is also high, then we have the price continuously trending high, but as the demand is low we see seller then determine the the market and push the price downward and hence the downward movement of the market trend.so as the situation remain we see the market follow a particular trend.

[pranto1971]

you know forex is a currency base business. in this business you can both buy and sell your currency. actually the movement of the market largely depends on buyer's or sellers. its also depends on economic condition of the country also. sometimes news realise and the trader trade a lot so the market get an extra pulse. by this we can make some good prophet.

[Sixteen]

The market have to move so that buyers and sellers of currencies can have the tendency to make profits and losses. The pressure the market can have sometimes comes as a result of much buyers and sellers looking on the way to make profits from currency exchange. The news too is the main drive of the market as high impact release will move this market in more volatile way.

[Nasir Lakhany]

you know forex is a currency base business. in this business you can both buy and sell your currency. actually the movement of the market largely depends on buyer's or sellers. its also depends on economic condition of the country also. sometimes news realise and the trader trade a lot so the market get an extra pulse. by this we can make some good prophet.

It is not like we really need to become a prophet in order to success in this business as well. If we know where the market might go with the news or the data then we might be able to predict the range they will go to in the end. Or at the least, if we have a strong back up like insider information then i think trading would be much more easier than now.