A phase of equilibrium occurs when supply and demand are in balance. It is a period when buyers and sellers of currency trade in a narrow range. To put it another way, markets like forex are always looking for new levels of equilibrium to bring buyers and sellers into harmony.
Many traders create their own glossaries. So you wouldn't be able to GOOGLE SEARCH those glossaries. The glossary for stock investing is very established. So you can GOOGLE SEARCH for it. fx at equilibrium could mean : - bull and bear of equal strength - forex has found its comfort zone forex trading equilibrium could mean : - trade forex when the market is dead - trade forex when everyone else is sleeping - trade forex when you are calm We have to use our imagination to look for the answer.
I knew what equilibrium means but interesting to know that it can be applied to forex as well, thanks to supply and demand.
When there are equal numbers of buyers and sellers on the market and a flat (horizontal accumulation) is formed, you need to wait for the price to exit this accumulation and trade in the direction of this breakout. Often such a breakout is carried out by impulse and after a retest of the broken side of this accumulation, you can enter into transactions in the direction of the breakout.
Forex trading equilibrium refers to a state where supply and demand for currencies are balanced, resulting in stable exchange rates. At this point, there’s no pressure for the currency’s value to rise or fall, as traders' buying and selling interests align, reflecting fair market value based on economic factors.