FOREX Tick
A lot of people ask me about what FOREX tick is, as well as how this little thing has an affect on FOREX trading. FOREX tick is not that tiny insect that wants to suck blood. An event in FOREX when the price of a currency pair changes from A to B is what we call tick.The moment that a new price is registered, a new tick also happens.
Fx market is discrete. FOREX tricks are the discrete price changes that drives it. There is a central computer in the system that combines all of the buy orders and all sell orders, and calculates a new price based on the supply/demand rule. The price changes along with the FOREX ticks are created by the computer, and these changes are propagated to all FOREX brokers all around the globe.
When the price of USD goes down with a gap as you often see on FX live charts, that is mainly because everyone wants to sell USD, and only a few people want to buy it. FOREX market by its nature can’t be steady. You will need to merge all sellers and all buyers first, in order to figure out the following price of a currency pair.
FOREX ticks is also the bases of various FOREX trading methods. Methods such as gap trading draws on ticks. Many scalping strategies were also based on ticks.
You can also predict the next tick movement and make a few pips of profit every few minutes by just looking at the tick chart.
For more details on how exactly it is done, watch my video tutorial by clicking on the button below.