My first thoughts on Forex were that it is driven by hydraulics - pressure. I am a technical trader and have maintained this standing and built my practice around it. I am sure there are many theories on price movement, however, I shall share my personal view.
The best way to describe my opinion on price movement is through the analogy of a labyrinth of walls and mazes. To me, the price is not random but rather like a Bouncing Ball arcade game. Each wall offers a degree of pressure and drives the price in a direction. Some walls will offer a lot of pressure, some walls just a little. If the price is coming off a strongly pressurized wall, it might fly through a lesser wall. But mostly there will at least be a pause at a wall, no matter it's strength, although not always and often, if it has already bounced, it might pass through a second time without argument. As the price moves in a direction, it will bounce off many walls, back and forth, until it comes to rest against a support or resistance that is too strong. At that point, it will reverse and begin the process again.
The truly exhausting thing about Forex is that there are so many walls, from the 1 M…