What is Price and What are the use of Term Value in Forex Trading

As you might notice, I'm not suggesting to simply FOLLOW PRICE, but I suggest you to rely on MARKET LOGICS. Market logics stands for those circumstance when price is derived by true Market Participants, and they are the strong holders who have start buying with some Force.

Why not to simply follow price action?
Price is simply the advertising mechanism and in most cases it can be misleading.

"Should you accept this breakout", "should you fade this market" and so on and so forth. Price itself will not give you clues for that. You have to analyse fragile equilibrium(when supply and demand are equal Price has to advertise higher) between price and value to get answers on these questions.

What is Value?

It can be called area of aсceptance - area that market will more likely revisit or stay near that area for some time. Just Like we have accumulation phase for few days and then strong range breakouts or It could be a bracket and Price react from Hotspot (will cover in next section)and then hold on to higher prices. Trading markets, you should rely on fundamental market principles.

And One Of them claims: "The goal of the marketplace is to facilitate trading" If you think about this principle, you will understand that market needs liquidity to facilitate trading. By "liquidity" I don't mean single buyer that steps in and kicks the price. By liquidity I mean plenty of players with different perspectives, participating near given price level. If you have that pluralism in opinions, you have value area. If liquidity is not enough, market auctions higher or lower to find it, means if we have strong rapid breakout followed by rapid move and then certain sell down could be a case market look for liquidity and then in desperation neglect off that area and look for new highs to find that liquidity again. Guess, how it attracts liquidity? Of course, it offers higher or lower price - nothing is new. That's how market auction works.

There are 2 basic types of price action if we look at it from "price-value" perspective. I will use the simpliest way to vizualize value on market - moving average. Of course, it's not that simple in reality, but it would be enough to show you how it works.

Value leads, price follows :-

For example, it occurs when value is lower. Market accepts lower prices and rejects higher prices, yet it has scanned higher prices for liquidity Which often happens before rapid moves to make a new high and also know as a part of profit taking. You might notice that value is going sideways. In this case market has no reasons to immediately leave this value area. You may expect some rotation before something happens.

Price is leading, value is following:- In this case you may notice, that price runs away from value, there's often a gap between price and value, and this is an indication of strong imbalance - sellers are in control and it's better to trade in sync with them.