Why does the price move? The answer is here!!! - page 17
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So. Forgive me for such, maybe, a stupid question, but I still cannot understand the nature of price movements in the foreign exchange market. That is, how many lots should, for example, be sold for the price to change by 1 pip for a certain pair. Or this change may be somehow reflected in the imbalance of other parameters.
After all, if someone sells, someone else buys his lot, and the reality is that the two demands are actually mutually absorbed, and hence the difference between supply and demand is equalized.
WHY then there is a price movement, since the number of purchases is always equal to the number of sales (it's not like the broker himself is buying and selling).
Logically , the quotes that are inside the spread are overlapped by the purchases/sales that have already taken place.
And if now someone wants to buy, the broker must find a counterparty. And apparently he will search only through stop orders (because the broker will not work at a loss and buy for me the currency at a higher cost than I want, that is at the limit order). Then what price will appear on the terminal - mine, his, or somewhere in between? So my buying moves the price downwards, not upwards. I am confused and confused!
i.e., how many currencies should be bought/sold for a 1 pips movement? You can not comment on it, just give me a link at least...
Very grateful in advance to everyone who responded to the request.
Otherwise I come to the conclusion that you, in fact, professional programmers, write EAs and indicators simply DO NOT UNDERSTAND the laws and causes of market behavior (so what is actually written?).
I too tormented by this question and so far have come to the conclusion that the price moves supply and demand, not at current levels, but at: above or below the price, if you sell now, someone must buy (if someone bought, the price is there), and if at the moment no one buys, then the price simply shifted to where there is more demand, namely where there is more bids (otherwise the pending buy).
ZS: this is exactly what I want to check by creating a general monitoring system in MT4, but somehow the run-up is a mosquito bump )
What's the nuance? Doesn't the psychology of the masses move the price?
Difficult to translate:) The point is that there is a real reason (crowd, banks, and others) why the price technically changes.
There are real causes and real movements, and how it "technically" changes is not important.
What does "technically changes" mean at all? What is the meaning of this phrase? It changes according to some law - let's try to model it.
And how are the electrons inside ("technically") running around in the Main Comp of the Exchange why know?
There are real causes and real movements, and how it "technically" changes is not important.
What does "technically changes" mean at all? What is the meaning of this phrase? It changes according to some law - let us try to model it.
And how are the electrons inside ("technically") running around in the Main Comp of the Exchange why do you need to know?
Re-read the thread.
"If the dog hadn't stopped to pee, it would have caught up with the hare." This, if you like, is about you specifically, specifically the topic, and specifically your questions. Digest for now...
Reread the thread.
"If the dog hadn't stopped to pee, it would have caught up with the hare". This, if you will, is about you specifically, specifically the topic, and specifically your questions. Digest for now...
The peeing dog may have been about you.
And it has nothing to do with the topic.
Keep chasing the elusive hare.
And if you go deeper? That's me on topic.
For example, there are two economies, the Eurozone and the USA, if one economy "grows" and the other "falls", then on the currency market the price "goes overboard" (moves in one direction as long as possible), this is "oversold" or "overbought".There is no way to tell for sure which pip is overbought or oversold...
Here is the answer: we see in the graphs the proportional dependence of 2 economies, currencies. No state, no economy - no currency and vice versa, everything is interconnected. Hence the answer to the main question of this thread.
IMHO.
The pissing dog may have touched you.
And it has nothing to do with the topic.
Chase the elusive hare further.
You haven't read the thread.
You're getting too deep into the meaning of the word "technically".
You don't try to consider the cause and effect relationship.
P. S. If you are really interested in the hidden meaning, think about how technically the price can react to the crowd reaction. Preferably to the accuracy of a point, not an electron, as you wryly hasten to answer me.
Please, go deeper: for example, there are 2 economies, the eurozone and the US, if one economy is "rising" and the other is "falling"
it does not happen that way, they are freely convertible currencies, in moments of downturn in the economy one could pour capital into the other currency, then vice versa
The world economy is "floating in a boat with a hole in it... the main thing is to find someone to scoop the water out of the boat...
For example, there are two economies, the Eurozone and the USA, if one economy "grows" and the other "declines", then the price "goes up" on the currency market (moves in one direction for as long as possible), this is "oversold" or "overbought".There is no way to tell for sure which pip is overbought or oversold...
Here is the answer: we see in the graphs the proportional dependence of 2 economies, currencies. No state, no economy - no currency and vice versa, everything is interconnected. Hence the answer to the main question of this thread.
IMHO.
It does not work that way, they are freely convertible currencies, in moments of economic downturn one could transfer capital to another currency, then vice versa.
The world economy is "floating in a boat with a hole in it - the main thing is to find someone to scoop the water out of the boat.