There are several different market forces which are responsible for driving price movement. There are also forces which work to keep prices flat, or stable as well. In a stable market, supply and demand closely match. In a bullish market, demand is often higher. Finally, in a bearish market, supply is usually higher. Buying and selling are always taking place, which means that digital options traders are presented with limitless opportunities.
In general, markets have a natural tendency to gravitate towards being balanced. Purchasers tend to drive asset prices up, while sellers pull prices down. When buying exceeds selling, expect a price increase. When selling exceeds buying, expect a price decrease. These truths are very simple and can be very profitable for the digital options trader. However, there is just a bit more to it than this.
Market balance is only ever achieved because each buyer must have a seller. This creates a foundation balance from the start. Now, what happens when millions of transactions are occurring every single minute? This is going to change matters quite a bit. As quickly as a balance is set up, it is shed. Market forces will need to be quite strong in order to throw an asset price out of balance. When are forces most strong? This will be during a time when investor sentiment is very strong.
Investor sentiment has the power to prompt other investors to purchase an asset at a higher than average price, or to sell an asset at a lower than average price. It will be these types of actions which upset market balance and create price trends. It will then be these trends that you as a digital options trader should be looking for, as they create some of the easiest profit opportunities that you will ever encounter. Using 30, 60, or 120 second digital options trades, trends can yield massive profit amounts.
From a technical analysis standpoint, you’ll quickly see that balance is the key, yet it never actually prevails for any period of time, leaving you to anticipate where the price will go next. In order to do this with an degree of success, you’ll need to learn about assets, identify what the current market pushes are, and be able to not only recognize price trends, but also get to the root of why they are taking place so as to determine just how long they may last.
Investors are always behind market forces. It will be their general opinion and actions that move asset prices. Balance is always trying to establish itself. However, buyers and sellers will continually be disrupting this balance and in doing so, provide you with opportunities to profit from digital options trading.