its the liquidity or you can say the numbers of buyers and sellers
1 Like
Yes,the only one thing that moves price in all markets is the liquidity, how many lots or shares are opened or still opening in buy side or sell side. Then price simply moves against it.
For ex; if there are 5000 lots on buy side,makret will fall down until they close all buy positions,the reason is simple.
Well, it’s several things moving markets such as news, etc, especially political news. It controls global economies heavily.
2 Likes
There is little misconception about fundamental analysis: you try to predict further development of fundamental trends based on the information you have, not reaction of price to fundamentals (as your are likely to be late with your bet, there are many algos which trade news with lightning fast speed, consume and process market moving information much faster). However sometimes I trade NFP using simple news straddle algo with Hotforex and if I’m first in the order queue (sometimes it happen) the trade is an ease gain!
3 Likes
Sounds great
Political news hugely impact forex market so forex traders are constantly monitoring political news and events to predict changes in the economic policies of national governments.
1 Like
They move in reaction to all the supply and demand, interest rates, government policy, economic health and many other factors.
2 Likes
The market makers move the market. These are big investment banks.
That is why when trading, you need to follow the big money. Trade with them and you will be profitable.
Retail traders have zero influence.
3 Likes
Correct! Always trade with stop losses, because we are not investment banks. LOL
1 Like
the big banks and the institutional traders market sentiments
2 Likes
With all that is happening now, it is a combination of both. Just like the fundamental law of business, demand and supply ( market forces) have a great role to play just like news and big names. Recently, with 1 tweet of Elon Musk about Tesla not accepting Bitcoin proved too harsh for the crypto market. And same is the case with any upcoming news or any speculations about it, it can severely effect the prices of trading instruments.
1 Like
Governments and Central banks, large commercial companies and the speculators move the forex market.
2 Likes
Institutions as well
1 Like
Whatever people say on the topic, they always get back to the balance of the demand and supply this way or the other.
I like to think of it in terms of psychological reaction. Anticipate the masses anticipate the market
The forex market is very vast so it is not easy to guess how and what makes market move. Also the fact that there ae big international competitors competing with each other.
And yes, demand and supply is another factor into this.
Have sense in this. 
Agreed on this demand and supply thing @no_frame
Supply curve of foreign exchange slopes upwards due to positive relationship between supply for foreign exchange and forex rate, which means that supply of foreign exchange increases as the exchange rate increases.
1 Like
From what I understand it is simply areas of liquidity. These are a magnet for price for the big guys to fill their orders. Either jump on board or be the liquidity for them.
You are right here. The effect of institutional players is extremely high, that is why it is important to use risk and money management in your trading. Everything might happen on the market irrespectively of pattern and other indicators and a trader should definetely secure their risks.