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Chapter 6, Part V. What type of analysis is better? - Q&A

Discussion in 'Complete Trading Education- Forex Military School' started by Gert v Bruggen, Jan 14, 2012.

  1. Gert v Bruggen

    Gert v Bruggen Private, 1st Class

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    Hi Mr Sive Morten.

    i am now in the forex market for a few years
    and i mostly use Technical analyze.
    but there is stil one thing i dont understand?
    and probably a stupid question.
    but what does make the price going up or down.
    what i dont understand is for example lets say u and me are 2 very big banks and we trade betwean the EUR/USD
    i buy the EUR/USD really big amount and on the other side there sould be someone who is selling it u for example.
    but who or what is then making the price go up or down
    as i did read for every seller there is a buyer so that would make it a balance betwean them.
    i also did read that even banks cant move or hold a position for long and that the health of a country is efecting the health of a Currency but stil then i dont know who is making the price move up or down.
    if for example the EURO is performing bad but the US is also in a crysis then stil u see market movement
    i sometimes have the feeling there is something els moving the market.
    i study a bit about Elliot wave and i follow your daily analyze's on the EUR/USD and that is mostly technical Elliot / fibonacci based analyze's.

    But for the last few years i follow a System called STAR it is a pure technical based system where we looking for a specific always returning pattern
    it is based on Dubble move's (dubble move example EUR/GBP weekly highest point down u see from the highest to 6/21/2009 a down move then a big pullback up to 10/11/2009 and from there down the second move to 6/27/2010 but if u zoom in or go to a faster timeframe in those moves u see faster dubble moves and in there again faster dubble moves enz enz).
    actualy our system is based in price and Speed and not on timeframes.
    we use different timeframes in MT4/5 to show us the correct market speed

    also we cannot predict where the marked is going only we know when the marked did finish a pattern and what it probably wil do
    as for now it looks like for a lot of major pairs we are at a reversal point
    but then even while i see cleary some pattern i stil dont know why the market is moving in those pattern .

    Greets

    Gert
     
  2. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Hi Gert,
    Based on core economy theory price determines by supply and demand. It seems that major part of your confusion comes from messing money supply with price. You've said correct that there is a buyer on the other side to each seller and from that standpoint money supply does not change, it stands the same, but why have you decided that their price is the same? Market will stand at the same quote only if buyer and seller want to make trade at the same price. When more supply comes and more sellers appear - there is a competition appears between them and price starts to go down. When more demand comes - they start to competite with each other for sellers and price starts to move up.
    Now there is a lot of noise here, since there are a lot of different participants with qiute different views and interests on market, that' why price movement becomes sophisticated now.
     
  3. Gert v Bruggen

    Gert v Bruggen Private, 1st Class

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    Hi Sive

    thx for the explenation i did know about Supply and Demand.
    but diddnt really understand how it works because me as simple trader i cant see who is there on the other side .
    probably my broker does know alot more and see's a lot me then what i see.
    and me as a small player my order is maybe not even getting on the reall marked but stay's in the broker system who just.
    shows me on my platform that the order is placed but they keep it inhouse till they get some better price or some other client placing the opposide trade.

    thx :)
     
    #3 Gert v Bruggen, Jan 15, 2012
    Last edited: Jan 15, 2012
  4. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Heh,
    yes, this is really can happen, I mean that your order will not be transferred to real market. later in this school will appear chapters, dedicated to different brokers and how they make money. So, there will be an answer.
    Still, if you want to see your orders on real market - trade currency futures instead of spot forex, on CME, for example. Then you will be able to see particularly all your trades and orders on real market.
     
  5. dotman

    dotman Recruit

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    Mr Sive, Pls how do i determine market sentiment in forex?, i'm kind of new in this market. Thank you for your analysis so far
     
  6. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Hi Dotman,
    Probably you should reach Part dedicated to Pivot points and Part to Sentiment analysis
     
  7. Hamza Samiullah

    Hamza Samiullah Corporal

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    informative ....
     

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