Market Cycle ( Educational Post) read the caption!

17. Dez. 2020

Market cycle is created by Supply and demand. This is a strong relationship between the quantity of a commodity or asset that producers wish to sell at various prices and the quantity that consumers wish to buy. It is the main model of price determination used in economic theory. The price of a commodity is determined by the interaction of supply and demand in a market. In the forex market we are able to identify supply and demand thanks to macro time frames . Price move from overpriced to underpriced. As you can see we start with a strong accumulation then a mark up in which our goal as a traders is to cacth the wave thanks to intraday buy areas. and then we have the distribution phase. In this phase , we have a strong mark down in which first buyers take profit and new sellers come in to the market due to the strong attractive expensive price. Your goal as a traders is not to trade but it's to catch good deals.

few questions to answer before taking a trade that are going to help you ?

- if you want to buy : Is price cheap in macro time frames ? ( underpriced) if yes then it's a good deal
-If you want to sell : Is price expensive in macro time frames ?( overpriced) if yes then it's a good deal

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