E-Books →Price action and market traps for forex technical analysis and volume scalping, charting, breakout traps for serious trader

Has anyone heard of the auction market theory? For anyone who's taken
an economic class, or even if you haven't, you have probably heard about
supply and demand for goods?
So, this is the basic form in the market:
When demand exceeds supply, prices will rise. Let me give you an
example:
Imagine yourself buying a car. You are at an auto auction. Why do you
think they set the opening bid at auction so low?
They want to drive demand, so as that opening bid hits, you have a
feeding frenzy on the price that pushes the price higher.
So the higher price goes, the fewer participants there are willing to pay
that higher price until there is one man left. He is the big winner. He gets
to take that car home.
Let's look at the other end of the equation. What happens when supply
exceeds demand, well prices will fall.
The same thing happens when it comes to financial markets; as price
auctions higher, there are fewer and fewer participants willing to pay that
higher price.
Now, what happens when both buyers and sellers agree on a price?
That's when we get what we call consolidation or a sideways moving
market.