Originally posted by shade343:
[
Why do prices
RISE in an uptrend?
o There are two activities in a market at any one time buying and
selling. There are two groups of traders buyers and sellers. They
oppose each other in the market, and price will move up or down
depending on the strength of either buyers or sellers.
o If there is bullish news in the market, there are more buyers
than sellers. The excess buyers then compete for the limited supply
of sellers.
Result : prices are pushed up.
o As prices rise even higher, those who held the view that the
market was going down eventually give up this belief and join the
buyers, thus forcing prices up and creating an uptrend.
Why do prices
FALL in a downtrend?
o If there is bearish news in the market, there are more sellers
than buyers. The excess sellers then compete for the limited supply
of buyers.
Result : prices are push down.
o As prices fall lower, those who held the view that the market was
going up eventually give up this belief and join the sellers, thus
forcing prices down and creating a downtrend.
[/b]
Eh, wrong lah.
Buyers and sellers are always the SAME as in for every buyer, there
is a seller.
Prices rise because buyers are willing to bid a higher price and
sellers are able to sell at a higher price.
Prices fall because sellers are willing to offer at a lower price
and buyers are able to buy at a lower price.
Your course got go through professional vetting or not?
