MARKET STRUCTURE - MARKET DYNAMIC

Hello to everyone in this wonderful community and on the steemit platform at large. I greet you all in good spirit and I want to believe that we all are doing just great today and if so we give God the praise for the sustenance of life and good health.

It is indeed a pleasure to be among you all once again and I am happy to be here and meeting you all in good spirit. I hope everyone is in good shape and health too as though it has been a while since I was here last.

Today I am here once agony amidst you all to continue from where I have stopped regarding the teachings regarding the market structure which I started with you all few weeks ago. Our last discussion was on liquidity which I explain intensively regarding it and it is part of the characteristics or features that make up the cryptocurrency market structure.

Today we will continue from where we have stopped regarding the market structure. For a brief recap, we are talking about the cryptocurrency market structure and as such, it deals with the features that makes up the market structure. We have talked about a few characteristics and today, we will be looking at another wonderful characteristic of the market structure which is MARKET DYNAMICS.

Source

I urge you all to sit tight, relax and take a chill pill as I begin the teachings for the day. I wish you all a happy reading and I hope you enjoy it as I begin.

---

Before we begin the teaching for the day, it is expedient that we understand the concept and meaning of the term Market Dynamics so as to give to get an insight regarding what is to be discussed today.

WHAT IS DYNAMICS?

It is crucial for us to understand the related terms before we can go straight to the business of the day for more emphasis. The word Dynamic can be denoted as a system that is featured by regular change. Therefore it is seen as the process that deals with constant progress that occurs simultaneously.

Source

I believe with the above short definition regarding the term dynamic, we now have an idea about what the word dynamic is. Now it is high time we relate both terms together and understand the concept.

WHAT IS MARKET DYNAMICS?

Market Dynamics can be seen as the activities regarding the price, volume and other flow in the digital market regarding the digital currency. This regular change contributes greatly to the market trend movement as well as the rise and fall of asset price which we call market volatility.

Market Dynamics is influenced by the activities of traders and investors in the market. These traders and investors come into the market to make trades and these trades can made at different intervals. Some traders launches the trading application to make buy entries and when they execute their trade you get to see a rise in the price of the said assets they are purchasing at that particular point in time.

The volume of the said assets rises above the previous level it was last seen and thus a new market trend in notice as price continues to appreciate and this is as a result of the purchasing power that is seen regarding the said assets in the cryptocurrency market trading at that particular point in time.

Eventually in no distant time other traders while in the same cryptocurrency market trading will launch a sell trade entry in other to sell short the assets that has already gained value as a result of the buyers in the market. When this happens there will be a great contention as we get to see price bouncing between support and resistance.

The constant change fluctuations in asset price, volume, price volatility, market trend movements and other attributes in the digital currency market is influenced by what we call market dynamics and this market dynamics is a feature of the market structure and this market dynamic is facilitated by various traders that are seen on the digital currency market executing trades.

This is why the price, volume and market trend movements changes in a blink of an eye. It is as a result of the various activities that are on going in the market and these activities do not just begin by themselves, they are greatly initiated by individuals in the market such as investors, traders and cryptocurrency whales seen on the trading market.

---

CONCLUSION

To wrap it all up for today I will like to conclude by saying market dynamic is an important feature that makes up the market structure. Without the activities of traders in the market the market will be stable hence trading will be one sided as such it may not profit everyone but the constant or regular change regarding the digital currency prices, market trends, volume and so on makes trading highly competitive and tasking.

So it takes a good market fundamental analysis to be able to execute your trade as market dynamics act greatly on the market trends, assets prices, volatility and other flows that are seen in the market. Knowing how to execute your trade amidst the market dynamics is important and it will help you to minimize losses while profits are being maximized.

Thank you all for having me today. I wish you a happy weekend.