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 imbalance between buyers and sellers getting this market in a specified period.
the market is moving upwards 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 market move only because of the news and nothing else except news, isn’t it?.
I guess both of news and imbalance 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 useful to understand more about the currencies pairs you’re trading, every currency pair has its own characteristics, 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 differ from the others by these characteristics, 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 ideal time that these currencies move frequently, 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 release, 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.
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