Originally Posted by nicesurf
It is caused by worry and fear. If the people doesn't feel worried the market will not fluctuate and we can not trade currencies...
Interesting answer. spike is not caused by fear but by sudden withdrawal of large buyers or sellers responsible for pushing the price to that higer level (fractal level) in the first instant.
Such withdrawal creates a kind of hollow as opposing market participant push the price back again
Think about it, these people ---- central banks, market makers, controls the market, so they are not afraid or worried at all. They know how events unfolds and when to withdraw. They know where price wedged (fractals) are formed and when to withdraw.
Only speculators (you and me) are afraid because we do not know the actions of large market participants.
my 2 cent