Why does price retrace?

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Why does price retrace?

Postby ivanlim » Sat Mar 06, 2010 11:20 am

May i know why doesn't a price move in one direction all the way,instead of retracements occuring? Shouldn't the price continue to rise if everybody buys a currency pair? Sorry if i do not make sense as i'm still unclear about many things about forex and i need some help. Thanks for understanding
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Re: Why does price retrace?

Postby spike » Tue Mar 09, 2010 1:01 pm

You should tune into my weekly podcast, the Secrets of Successful Traders. Many of the traders we interview each week are former floor traders and they speak firsthand about the supply and demand levels that drive the markets and how to spot these levels on the charts.

Right Click the link below and Save AS to download podcast!
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http://media.libsyn.com/media/rkassulker/sosTraders_003.mp3
Spike, the Forex Answer Man
http://sosTraders.com
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Why don't you simply answer a question every once in a while

Postby goldtop » Tue Mar 09, 2010 2:46 pm

How about actually contributing something remotely worthwhile yourself to one of these topics, instead of answering every single post on the forum with yet another of your tiresome & blatent spam exercises.
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Re: Why does price retrace?

Postby ivanlim » Wed Mar 10, 2010 6:48 am

Thanks
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Re: Why does price retrace?

Postby Edward Revy » Wed Mar 10, 2010 6:37 pm

Hi ivanlim,

For every buyer in the market there is a seller. Trends form when one of the sides gets stronger and confidently presses on. But with time everyone needs a break: to take profits, to adjust risks, to get our with a loss (for some), to reverse a position etc - majority of these operations take place at market support/resistance levels - so called "pit-stops" for every trend. So, as the interest temporarily eases on one side, the opposite forces take over causing the market to retrace or completely reverse.
Retracements are expected and wanted by many traders, since it is the most cost & risk efficient way to enter the market, which is already trending.
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Re: Why does price retrace?

Postby ivanlim » Sun Mar 14, 2010 11:34 pm

Alright. Thanks for your help Edward
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