When demand is greater than supply, prices rise, and when supply is greater than demand, prices fall.
Wyckoff’s method of trading and investing
#forex
This is a stock market view of trading.
Interesting. But is it correct for forex traders?
Forex is traded in terms of the exchange rate between a pair of two currencies. Both are subject to the supply-and-demand market perspective. But the exchange rate (which we call “price”, but which is not really) of the EUR/USD pair can rise even though the supply of both Euros and US Dollars is less than respective demands.
So in forex terms, Wyckoff’s logic is like Schrödinger’s cat, it is both definitely alive and definitely dead. Is that useful for forex traders?
Basic economic law. And very apt in our Covid 19 environment.