If you could somehow get a feed from all the brokers and big banks as to where the large orders are, you could sort of know where the market will change direction at what level aswell, now theres an idea...
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DislikedIf you could somehow get a feed from all the brokers and big banks as to where the large orders are, you could sort of know where the market will change direction at what level aswell, now theres an idea...Ignored
DislikedOn ctrader with fxpro they say its level 2 pricing.
However what I meant was, if there was a way to feed some sort of overlay onto your charts, a feed from all the brokers and big banks, which had pending buy and sell orders and of what size, if that make sense.Ignored
Dislikedshort term, price is completely random......however long term I believe price does become predictableIgnored
DislikedHm, best way I see would be to acquire an account with a large broker that provides access to an actual exchange, get a programmer to code an indicator that pulls data from the level 2 and prints it on the chart.Ignored
DislikedThis sounds a simple question, but it is not indeed. There are a lot of trading methods claim working. Nevertheless, I wonder in general what logic these methods based on in predicting price movement.
Can anyone give me a good answer?
Thanks,
kk007Ignored
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My main clue in doing this is seeing what the "systems" out there say to do and then do the opposite. This is because I know that all those that trade these systems will lose and I want their losses to come into my account.
Does that predict price movement? No, it predicts "loser behavior".Ignored
DislikedEeh, yeah sort of. Even on a centralized exchange for fx, like trading currencies on the Chicago Mercantile Exchange, L2 only displays information of prices close to the current bid/ask eg. you may see Goldman Sachs wanting to buy 1K contracts at some price 3 pips away that will draw increased orders in that direction, you won't see info on what's happening say 300pips away. So use of L2 is best suited for second-to-second, minute-to-minute, tick-to-tick or spread betting traders. And even then you'll have to put more money on the table to make...Ignored
DislikedThat would be a bit like looking at your ISP's customer base to see how many people are on the internet!Ignored
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I know, that's why I said "wheres (typo 'whereas') otc fx market depth you'll only see the depth of participants that deal with that broker ie. other clients."Ignored
DislikedFor me, it's a question of culmination. Enough time spent staring at this seemingly random pattern of price movement over a few years will begin to open your eyes to oft repeated patterns. Patterns in waves, in candlestick formations and with how price reacts at particular historic levels.
Then bolt on some understanding of voume, both immediate and background.
Add to that an understanding of market cycles, trading sessions and the likely impact of economic data releases and you're getting there.
If you then throw in some correlation stuff...Ignored
DislikedHi Trotty,
Thanks for your input, but your reply seems to explain how to use some technical methods to gain an edge, instead of tell why these method works.
kk007Ignored
DislikedWhy? Because you have a theory that will give you an edge. You test that edge and it seems to work. That is why it works.
But knowing why it works doesn't mean you can make money out of it.
It is mentinoed by some other posters on page 1. You cannot predict price movement with certainty. There is always that "if i'm wrong" part in any trade (which is a concept some people of this forum does not seem to accept. Check out those martingale strategies)
It is always a probability game. The edge you have is giving you a higher chance of success....Ignored
DislikedYes, knowing this why cannot make one be profitable.
But, I am interested in knowing that as a "scientific" knowledge.Ignored