What Causes a Market to Move?

February 16th, 2021
 

Understanding the forces at play in any given market can better prepare traders for inherently risky & unpredictable markets. Traders often find themselves asking, “What really moves the market, and how can I see it in real time?”

A common misconception among traders is that price goes up because there are more buyers than sellers, and vice versa. However this is not entirely accurate, since by definition there is a “buy side” & “sell side” for every transaction.

Instead, aggression is what moves price up or down. “Aggressive” orders are often market orders, intended to execute immediately upon hitting the market, but can also be other order types depending on the conditions required to execute.

In the following video clip, discover how identifying aggression in the market can potentially:

  • Read the market more clearly
  • Make better trading decisions
  • Achieve more consistent results

If you enjoyed this clip, be sure to watch our other webinars How to Use Volume Profile and Buy & Sell Signals!

See all of our free trading videos!

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