Community Forex Questions
How do investors use market psychology?
There are cycles of expansion and contraction in every market. The atmosphere of hope, confidence, and greed permeates a market that is expanding or prospering. Generally, these are the emotions that stimulate strong buying activity. It is quite common to see some sort of cyclical or previous effect during a market cycle. When prices rise, for example, emotions become more positive, which in turn increases positive emotions, lifting the market.

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