1.1.2.3 How does the price fluctuate (2)

In the previous article, we mentioned two situations where prices are no longer fluctuating:

1. No new transaction orders are submitted;
2. The price of the newly submitted transaction order is in the range where the transaction cannot be completed.

Next, we discuss the situation when prices fluctuate, which requires

1. A new transaction order is submitted;
2. The price of the newly submitted order is in the range that can be filled.

【example】

When the price stays still, it will fluctuate, there are two directions:

{ price up fluctuations }

The reason for the upward price fluctuation is that the price of the new trading order falls within the range shown in the following figure.

Thus forming a price up fluctuation.

{ price downward fluctuation }

The reason for the price downward fluctuations is that the price of the new trading order falls within the range shown in the chart below.

Thus forming a price downward fluctuation.

[Thinking]

The prices of the two parties are equal at the time of the transaction.

 Why is there always an analysis report saying that there are a lot of capital inflows in the market or a stock today, or is there a lot of capital flowing out?

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