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  • Understanding Price Action in Forex Trading

    Posted by admin on May 5th, 2010 and filed under forex trading system | 4 Comments »

    Price action in forex is basically governed by supply and demand theory – if there is demand for the currency it goes up. If there isn’t price goes down. If there is too much supply, currency goes down and if there isn’t enough, currency goes up. That’s the simplest explanation – you might want to search around for supply and demand theory.

    Most forex systems are based on price action because most traders use charts – technical analysis which depends on price action.

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    4 Responses

    1. bill g Says:

      Price action is based on your experience and choices in trading If you are wanting to trade currencies {Forex} I suggest practise first and follow your own picks or if you have funds to invest and want a good return write to me for more information
      bill67co@yahoo.com
      References :

    2. flying_eagle Says:

      I’m not too sure what you mean but here I go…

      Price action in forex is basically governed by supply and demand theory – if there is demand for the currency it goes up. If there isn’t price goes down. If there is too much supply, currency goes down and if there isn’t enough, currency goes up. That’s the simplest explanation – you might want to search around for supply and demand theory.

      Most forex systems are based on price action because most traders use charts – technical analysis which depends on price action.
      References :
      Forex Trading Log
      http://www.forextradinglog.com/

    3. Cathy Says:

      Check the website link below for the top Forex trading guides that will take you step-by-step through the intricacies of foreign exchange trading to make huge profits.

      http://money-review-site.com/investment.html
      References :

    4. Charlie Mike Says:

      Check out Japanese Candlestick…..Want to improve your Trading Strategy ? Dont just improve your technique. Improve also your Trading Strategy. Read more about it as taught by Dr Alexander Elder. Check out this compilation of Forex books. http://www.geocities.com/lcming/Forexbooks
      References :

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