3 Day Blitz - Day 1 - Candlestick Analysis Recently I updated my trading strategy. In this webinar series I detail my Forex price action strategy. This is the first webinar in a three day series. In this webinar I discuss the latest version of my strategy.
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One thing that is so confusing is that in trading we say "buyers are in control" or "sellers are in control", when in fact it could be read in reverse. This can be very confusing, especially to new traders (like me). Buyers/bidders are looking for the lowest price, while the sellers are looking for highest...so when "it's a seller's market - that is, when the price is rising, the sellers are actually able to sell at a higher price, so sellers are actually "winning" as they're getting higher prices, whilst buyers are actually having to pay more for the same shares, so ostensibly "losing". In this respect, sellers are actually the ones in control, whereas buyers are being forced to pay higher prices. However - and this is why we use the reverse logic in trading - when the DEMAND for shares grows stronger than the SUPPLY at any given millisecond, the result is not a larger supply (since we're in a closed market), but rather a higher price. So in this sense, "control" is simply the power of demand over supply, or bid over ask, or buyers over sellers. It is not the price control - just the opposite - it is the strength of demand versus supply that we read as "control". In trading, demand and supply are measured as bid and ask, hence our terminology. This is especially confusing when we say "sellers tried to push down". Definitely not clearly logical. Sellers are trying to push the price up, but they're being met with bids that are lower, meaning demand is lower. They must then drop their asks to meet that reduced demand. in this sense, it is actually buyers who are pushing the prices down, with sellers obliging.