I first heard the term “feels bid in an offered market” on the Global-View.com Forex Forum many years ago. It was posted by one of our professional trader members, LA Mel, who used the term mainly for the EURUSD. However, it soon became apparent that it could be applied to all currencies and on both sides of the market (e.g. feels offered in a bid market and vice versa). I soon added to my trader toolbox and still use it today
Why am I bringing this up?
The reason I bring this up is that it is easy not to see the forest through the trees, especially if you only focus on shorter time frame charts and do not look at the broader trends. This is especially true during periods of consolidation where a currency, for example, appears to trade bid (or offered) only to see it run out of steam when whatever order is driving the price action has been completed.
However, when you look at the broader picture you realize that the basic trend is down and the currency just appeared to be bid in what otherwise was an offered market.
Keep your emotions in check
During periods of consolation, often characterized by relatively tight and choppy ranges, small moves (e.g. 20-30) can feel like they are much larger. This can create the feeling that a currency is bid (or offered as the case may be) that triggers your emotions and give the false impression that a currency is bid or offered when in fact the overall trend is pointed the other way.
Keep the broader trends in mind
So always keep the broader trends in mind and what it would take to change them. This is one way to avoid getting caught by a currency feeling bid in an offered market and vice versa.
In addition, the forex market has changed from years past as it is no longer dollar-centric. In this regard, cross-currency flows are often the drivers of spot moves. As a result, one currency can be bid while another is offered and feeling bid when it is really offered and vice versa.
While this started out as a history lesson, the term “bid in an offered market” is still a term I use today and one you can use as well to put the price action in perspective.
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