Hello everybody! Today I want to discuss with you a serious question - What factors are pushing the price?
As you know, there is fundamental and technical analysis.
Each trader himself gives preference to what to use in the analysis.
And we will try to understand what pushes the price.
NEWS The first thing that comes to mind is NEWS. News affects OUR WHOLE LIFE.
The news pushes crowds of people to one point and forces them to flee from another.
News is a strong factor.
If the central bank decides something, it will be in the news and it will definitely push the market. If the president of the country has decided something, it is shown on the news and it pushes the market. If a person who decided the fate of an entire industry was fired, it will push the market and the price.
Therefore, it is IMPORTANT to follow the news and, more importantly, correctly interpret the news and be able to predict the future mood and future actions of the crowd based on them.
PATTERNS
All traders see the same chart, but everyone perceives it differently. There are many reasons for this: someone knows more patterns, someone has more experience, someone understands better than another, someone has better discipline. And when one or another pattern appears on the chart, people start trading and push the price. You may have noticed that if no special picture is visible on the market, then the market is sluggish. As soon as a pattern emerges, movement begins. People entered the market. Can we say that patterns move the price? Or maybe someone is creating patterns on the chart to move the price?
EMOTIONS
We have already touched on this topic above, but it is worth noting separately.
Emotions play an important role in everything.
If the crowd is happy, the market is growing.
The crowd is afraid - the market is falling.
The crowd can be angry at the company or the country, close positions and thereby push the price down because of their bias..
The one who knows how to understand other people's emotions is able to predict the future actions of the crowd and make money on it. Think about it...
SUPPLY AND DEMAND
Classical works on economics teach us that the market is controlled by supply and demand. more precisely, the difference between supply and demand. If the demand is large, the price rises, if the demand is small, the price falls. The logic is simple: if people buy a lot, someone will start raising the price before selling, why not, because people buy.
When people don't want to buy, the one who needs to sell will lower the price to lure the buyer, because you need to sell something.
At the same time, it is important that there should always be both a buyer and a seller, otherwise the price will stand still or move slowly.
When there is both a buyer and a seller on the market and a lot of transactions are made, the price moves quickly, volumes increase, so even strong jumps (GAPS) are possible.
MANIPULATION Manipulation is the darkest, most hidden action from prying eyes. No one can say for sure whether it was manipulation or not. Can someone push the market? You often observe that the price reaches your stop, after which it immediately goes in the right direction, but without you.
Many traders believe that manipulation can be observed in the market .
Someone thinks that every movement is manipulation. What do you think?
Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩💻
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