Some food for thought!


#1

Have you ever thought what happens each moment on current price level?

Above and bellow current price you have these people that entered some time in the past!

  1. Buyers that bought above price and they are experiencing a red trade. At present time and current price they either close at a loss or wait for market to reverse and win the trade or exit at break even.

  2. Sellers that sold above price and they are in a green trade. At present time and current price ,they either take profit or wait for more profit, market reverses before their target and close at a loss or around break even at best.

  3. Sellers that sold bellow current price and are in a red trade. At present time and current price they either close at a loss or wait for market to reverse and win the trade or exit at break even.

  4. Buyers that bought bellow current price and they are in a green trade. At present time and current price ,they either take profit or wait for more profit, market reverses before their target and close at a loss or around break even at best.

    At present time and current price you have these people

  5. New buyers entering the market with market or pending orders

  6. New sellers doing excactly the same.

By the time they enter the market, the explained procedure takes place.
There you go!
Cheers! Fx Sailing Weekly