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is it possible to tell when there's a buy in forex?


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is it possible to tell when there's a buy in forex?

  #1 (permalink)
 johnEdweeno 
brisbane queensland australia
 
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Platform: multichart
Trading: currency futures
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People say you can tell whenever there's a buy because price will tick up, but wouldn't there also be times when there's a buy but there's a larger amount of liquidity at that price point than was absorbed by the buy and therefore price doesn't go up?

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  #2 (permalink)
dekalog
Gdańsk Poland
 
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Short answer is yes; you are quite right that whether a price ticks up/down depends on the amount of resting orders in the order book at that price level. A large number of orders will absorb a small market order without necessarily moving the price.

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Last Updated on April 23, 2020


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