The Driver - Part 1

Hi guys,

How you guys been holding up till now? Good? Not good? Not good but not not good?

I'm sure everything will be just fine for you guys. May you guys be blessed.

So today (i think i'm going to write this and save and continue write and save a several time),

We are going to discuss about who drives the market.

Buyers & Sellers.

Remember how I explain the market move from past to present, and those customers/suppliers how they could affects your economic growth?

We will try to dig in and investigate who are they in FOREX market.

When I described what FOREX mean, i meant by "Currency Exchange" . Foreign Currency Exchange to describe the whole thing. Thus, the term Currency.

So who drives the currency? Can a currency get strong/weak when someone buy/sell the money?

Lets take a very recent event as our example shall we?



US Presidential Election.

Euro pound vs US dollar

What did you all see?

(1)- You guys noticed the first zone where it spike up?
(2)- And suddenly spike down;
(3)- Gradually move downwards since then.

Here how i could explain (To my knowledge and readings)

Rumors said IF Mr Trump won the election, the US dollar will weaken; vice versa,

Mrs Clinton won, US dollar strengthen.

WHY?
-This was because all the time the US government was organized by democratic party.
-The investors were confident with the policies (which was established very long time already) created and maintained by the government.
-The investors never like changes, especially to the policies that they are holding on for such a long period of time.What if the terms changed? What if those terms were not in their favor?
-When an organization which established by the democratic, suddenly hand over to the republican party, it means everything's changing. - which leads to previous point.
-The investors will have second thought, doubt, anxious, towards their money which already in that particular country. What will they do after that?
-They will take back and called off the deal.
-When a country lost investors, they lost their customers! >>>  BAD PROFIT!!! US Dollar will DROP!!!

When Mr Trump had the lead in votes, those investors were having trouble, anxious, doubt towards the organization what will become, which leads to the zone (1) spike up.

Now why it's spiked up? Weren't it dropped? Spikes down?

This is because the chart is illustrates Euro pound vs US dollar, when US dollar weaken, the Euro gained advantages > strengthen their pounds > spike up!!

There are 4 scenarios can be interpret in the chart Euro pound versus US dollar.

Remember when we were in school learning mathematics?

Imagine...

The Price (C) can be manipulated through 4 conditions.

1-Price ↑ when Euro pound strong (↑).

2-Price ↑ when US dollar weak (↓).

3-Price ↓ when Euro pound weak (↓).

4-Price ↓ when US dollar strong (↑).

You guys cool?

Now it make sense huh why it spiked up.

But
why the dollar strengthen back at the end of the day? Weren't it supposed to weaken??? Because he won~

This is how Trump attracts all the investors.  The power of speech
His words, his confidence to make American great again, he succeeded in continue the deals with investors. More customers, more profit, more strong.

That's how the chart spiked down and continued its journey to south.


Investors = Customers = Buyers / Sellers

Now you all get it who's the driver of the market now?

OR

Who the hell are those investors?

Buyers & Sellers

Hi, guys..

So last post i wrote about what is "FOREX" . I hope you guys understand something from my previous post.

so Today i would like to write about ... ... ... ... ... ... ...

about what?

Maybe you guys wondering how can we know the market reach 1 point where we certainly it will bounce . What? bounce? what is that?

Let's look at the above figure, we look it from left side to right side alright?

The first zone i marked blue line at the bottom & red line at the top, with the A, B, C, D.

Remember that we need to look from left to right? This is because the price move from past (Left) to present (Right).

From point A  to point B to point C and to point D.

The bounce is refer to how A can reach C. Which is through B. Agree?
So the point B is the bounce point aka turning point.

you good fellas?


_________________________________________________________________________________


How Does The Market Move?
Good question.

1 Thing for sure, there are a lot of factors.

1 of them is what we called Buyers & Sellers.

okay, ask yourselves.

When you open a shop. How you define your business is doing good?

Yup, a lot of customers come and buy stuff from your shop right? So you will be making a lot of profit.

and when there's no body is coming, and yet the suppliers keep coming and force you to pay for the goods in advance, is this good? your profit will drop!!

When the rate of customer is higher than the rate of supplier coming, your net profit is growing UP.
When the rate of supplier is higher than your customer, well...enough say...your net profit is

DOWN!

It goes the same with the currency market. If the shop have customers and suppliers as buyers & sellers,

What drives FOREX market?







I will continue in the next post of who drives the FOREX market.



Thanks a lot guys!
Regards.