Tuesday, April 5, 2011

Figure 1: The Forex Vortex


Natural selection takes on a whole new meaning in the forex markets,
where survival of the fittest is the only rule, and market action ruthlessly
eliminates anyone who has not uncovered the context of the game.

WHO
Far more important than knowing who trades forex is knowing who trades
forex successfully, and how they do it.  The players in the forex markets
operate with widely varying perspectives.  When one of these players
enters the market, a force is created that is proportional to the perspective
of the trade initiator.  That force can play a role in the short term, creating
radical price changes, and it can play a long term role, defining trends.
Figure 2 shows the major perspectives in the forex markets.

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