Date:Mon Dec 23 2024Tokyo:0:54Sydney:2:54New York:10:54London:15:54CET:16:54
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Confused: the basis of charts
dalpets
Posts: 7 ✭
Posts: 7 ✭
In one of her books binary/FX trader Anna Coulling says to importantly trade on volume & price. She talks as if the charts represent the volume of traders trading at any given price point. She goes on to describe the charts as a tug of war between buyers & sellers. She even talks about entering trading when certain world currency markets open or overlap in time, thus providing a greater probability of achieving trade volume.
My understanding is that the charts only represent the value of currency exchange rates at a particular time point in real world economies, and that the volume (number) of traders buying & selling binary options do not affect the value of charts at all.
Could you please comment on these seemingly conflicting statements?.
My understanding is that the charts only represent the value of currency exchange rates at a particular time point in real world economies, and that the volume (number) of traders buying & selling binary options do not affect the value of charts at all.
Could you please comment on these seemingly conflicting statements?.
Comments
Strange statement indeed, you sure you didn't misunderstand?
Anyway, charts move due to supply and demand and volume is basically "how much" price is moved and that could be
one trader buying for example thousands of shares or 1000 traders buying 1 share each (just an example). So they are indeed related.
However, I think what she meant was that it's the value of the asset that is represented on the charts not the number of people and she is correct.
So overall, it doesn't matter how many people there are, a bank buying 60 million Euros or millions of people together reaching the same number.
And yes, the price only shows the assets rate/price/value.
Do you understand? I mean if the EURUSD is at 1.0666 and people start buying lots of Euro = EURUSD goes up but the price, what you see on the charts is the value of EURUSD, number (volume) of people doesn't matter, it's not shown there.