Why does the price move? The answer is here!!! - page 6
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There you have it:
there are plenty of examples when you can open a trade on TA or FUNDAMENT and it will be profitable
Well, yes, about 50% of the time... Conclusion: a classic TA and FUNDAMENT in the furnace. It's outdated, you have to know it, use it - not for me. I have been doing forex for three years, but I started to earn only when I gave up all these pours of other people's experience and started to think with my own head. The money is much closer than at the top of the mountain from the dusty books of the last century.
But there is a BUT, - to each his own, I admit that for someone it may be just the opposite.
"Why are you developing systems here?
Myth.
i mean the forex market is manipulated
If it's a MIF, can we briefly understand why ?
If I understand you correctly no one runs anything - according to you it walks itself - and sometimes not to the right place though those very big banks !
Yes, you understand correctly.
Why is it a myth? In a nutshell. Let's assume that the big banks want to reduce their risks, including those related to exchange rates. Suppose they collude and manipulate the market. In our case, they sell and buy currency at prices that are not in line with supply and demand. I see a great risk of an imbalance leading to a collapse. Or the conspirators have agreed to regulate supply and demand by injecting/extracting their funds, thereby preventing, as mentioned here, much volatility. The devil is in the making, since the exchange rate risks need to be covered by the same risks of new exchange rate losses. And in both cases, one problem remains unsolved: the problem of the stowaway - as long as there is a free ride, all passengers will ride for free. There are a lot of big players in the Forex market who will not hesitate to take a ride at the expense of the conspirators on occasion, and if they are lucky they will even cheat them.
Volatility can be reduced in another way - by increasing liquidity, decreasing barriers to the market, and increasing competition. Which is what we are seeing everywhere.
I would, for example, suspect a conspiracy if spreads widened and prices moved a dozen figures a day, despite an increase in the number of participants and market volume.
Once upon a time, outfitting a ship to India for spices could go up tenfold. Not everyone could do it, but whoever could, and whoever was lucky with the weather and God's good fortune, got rich many times over.
Today the volatility in the spice trade is almost nonexistent, not because of a conspiracy, but because anyone can start dealing in those very spices without too much trouble.
That's about it.
Don't torture the man.)
It's really quite simple. There really is a balance. You just have to take into account the following.
In fact, a large part of the currency is sold and bought by end-users. Such are the legal entities who actually pay dollars for oil and euras for machinery from America. They are the ones who get screwed by the exchange rate fluctuations. For example, the harmonious buying and selling of currency between a bank and a legal entity serviced by the bank (I do not know exactly how in the West, but with us) is 1.5 - 3%. A bank employee can play any music on this harmonica, including, for example, waiting for the exchange rate to fall and then selling the fallen currency to his client, which the bank no longer needs. And that poor customer simply has no choice.
For a detailed answer to the question just ask the market participants. Everything will fall into place, including the balance sheet.
For example, think about the small part that changes just on the street. Suppose you've walked out of the house with the intention of selling your last $100 bill for the ruble you need for the grocery store. You go to the local canter, unsuspecting (the ruble exchange rate is plummeting because the president said something on TV), and when you arrive it turns out that you won't get as many rubles as you bargained for. It's a shame, of course, but you still have to buy sausage... So you...
Everyone finds themselves in the same position. It is just someone (for example, programmers-advisers-metatrader:) can recognize the beginning of a collapse in its infancy and not wait until the sausage has to be exchanged for it, but to take action in time.
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More general considerations.
It is not necessary to understand the essence of the phenomenon in all its details to be able to correctly identify its properties. For example, you don't have to cut yourself to see if a knife is sharp - you just have to look. No housewife has the slightest idea of the complex thermodynamic, chemical, etc. processes going on in her pot, but she will make borscht better than any teretik chemist. Simply because she is guided by the properties of the object without finding out its deepest essence.
By the way, you don't have a clue about the underlying basis of the earth's gravity, do you? That doesn't stop you from walking down the pavement in order to get to the canter, does it?:)
There you have it:
Thank you very much.
Sorry for such a perhaps silly question, but I still cannot understand the nature of price changes in the foreign exchange market. I am very grateful in advance to everyone who responded.
http://www.alpari-idc.ru/ru/articles/c_forex.html
Finally some explanation. Thank you
there are plenty of examples when you can open a trade on TA or FUNDAMENT and it will be profitable
Well yes, about 50% of the time... Conclusion: classic TA and FUNDAMENT to hell. It has outlived its usefulness, you should know, use - not for me. I have been doing forex for three years, but I started to earn only when I gave up all these pours of other people's experience and started to think with my own head. The money is much closer than at the top of the mountain from the dusty books of the last century.
But there is a BUT, - to each his own, I admit that for someone it may be just the opposite.
Classic is what you mean? Billy Williams... he didn't create his aligator for forex
if i'm not mistaken he and larry williams and others didn't develop their theories on forex
Why does it not work? It's hard to find the 0th wave or at least the beginning of the 2nd one.
i find it easy! after the divergence ....
look at the example in action in the picture above in the thread I gave an example of a simple wave TA
the classics are good to read sometimes... it really helps
everybody must have a different approach
Don't torture the man.)
It's really quite simple. There really is a balance. You just have to take into account the following.
In fact, a large part of the currency is sold and bought by end-users. These are legal entities who actually pay dollars for oil and euros for machinery from America. So they get caught up in the exchange rate fluctuations. For example, the harmonious buying and selling of currency between a bank and a legal entity serviced by the bank (I do not know exactly how in the West, but with us) is 1.5 - 3%. A bank employee can play any music on this harmonica, including, for example, waiting for the exchange rate to fall and then selling the fallen currency to his client, which the bank no longer needs. And that poor customer simply has no choice.
For a detailed answer to the question just ask the market participants. Everything will fall into place, including the balance sheet.
For example, think about the small part that changes just on the street. Suppose you've walked out of the house with the intention of selling your last $100 bill for the ruble you need for the grocery store. You go to the local canter, unsuspecting (the ruble exchange rate crashes because the president said something on TV), and when you arrive it turns out that you won't get as many rubles as you bargained for. It's a shame, of course, but you still have to buy sausage... So you...
Everyone finds themselves in the same position. It is just someone (for example, programmers-advisers-metatrader:) can recognize the beginning of a collapse in its infancy and not wait until the sausage has to be exchanged for it, but to take action in time.
----------
More general considerations.
It is not necessary to understand the essence of the phenomenon in all its details in order to correctly identify its properties. For example, you don't have to cut yourself to see if a knife is sharp - you just have to look. No housewife has the slightest idea of the complex thermodynamic, chemical, etc. processes going on in her pot, but she will make borscht better than any teretik chemist. Simply because she is guided by the properties of the object without finding out its deepest essence.
By the way, you don't have a clue about the primordial nature of the earth's gravity, do you? That doesn't stop you from walking down the pavement to get to the canter, does it?:)
The answer is basically! and clearly explains ...
There is turnover between countries ... You sell oil and gas and get currency.
but you need to pay your wages in rubles... they had to exchange some currency for rubles... so we see a candle in the forex market!
And indeed...
You do not need to know how a car works, you just need to know how to drive it...
- Some people even don't know how to change the spare wheel and use a car.
Forex exists for real export/import companies. Calling someone like BHP a "poor customer with no choice" is amusing... Also, the story of stale currency that is sold at an inflated price is purely a "horror of our town", it has nothing to do with forex.
Any buy/sell order will be executed by a broker/bank from their own reserves and then/at the same time they will find someone who wants to make a reverse operation. The bank's risk that the price will go away, i.e. there are no willing sellers/buyers at the right price, is covered by the spread. Since the market is highly liquid, the risk is minimal and so is the spread. On the news, the risk that the bank will not be able to cover a reverse trade increases, so the spread is widened by the bank.
When someone makes a purchase request, the bank checks whether it can buy enough of the respective currency and at what price. If the request is big, then it is obvious that the bank has to buy everything that is available on the market at the current price, and then also at a price 1-2-3 points higher. The bank calculates how much it will cost, adds its commission (spread) and gives the client the price. Naturally, it will be higher than the current price on the market and the terminals of all brokers who receive information from this bank and then all those who are under these brokers will show the price increase.
The importance of speculators in the forex market is great, but still not enough to smooth the prices due to the size of the market. Only the central banks of the leading countries are able to influence the market. It is ridiculous to discuss the influence of "kitchen" traders on the market...
I already have the feeling that as many people as there are opinions!
I raised the question and I got scared of this confusion. Is there no simple and clear scheme of work?
We urgently need to create an introductory course for programmers. Otherwise they all write and write, I don't understand what they're saying...