I posted this elsewhere on FF. Thought it was appropriate here.
It's Saturday morning and I felt like writing something here.
Supply/demand trading is a concept that has been around for centuries if not millenniums. So with that in mind do you think the fabricators of these zones (Big Money) is aware of what they are doing and the tracks they leave on the chart? Why will price blow through a very strong zone like shit through a goose only to be stopped by something that looks insignificant? Or are they going to leave billions of dollars, pounds, yens and euros dormant for weeks just because it is a zone? Every day I am thinking about trading and how my life interacts with theses questions and many more.
The point of this is to realize that trading is much more then marking a zone and placing orders, a monkey can do that, and the monkey pays the price. Would Wallmart sell bathing suits in North America in December? But they will sell them in Australia. Is the Forex market any different?
I have spent a lot of time in the woods doing various activities. The tracks left behind by various critters tell a story if you are willing to take the time to read it. Where they go for water, food, safety or bed down can all be seen once you learn what you see. The same holds true for the tracks left in the market. To me reading price is much more then what price is doing now or what it did to the left. What is the "intent" of the price now? What was it yesterday? Why does a deer pause at the edge of the woods before stepping out into a meadow to graze? All issues of supply and demand.
So some things to think about.
1. What is the intent of the money behind the move.
a. Right now
b. This week
c. last month
2. What time of day is the best time for those in charge to accomplish their intents.
If a bank wants to fill billions of dollars in orders and a 4h zone is hit with the opening of the Aussie session is it going to happen? Usually it is like selling surfboards to cowboys. Sure some will buy but usually not a very good marketing strategy. Is a cougar going to hunt for deer in the middle of the afternoon? It is all supply and demand.
The animal kingdom is made up of two types of critters, predators and prey. Predators have their eyes on the front of their head. This enables them to focus all their intention to the prey that is hunted, the deer who does not pause at the edge of the meadow. Prey's eyes are on the side of their head. They have a much wider field of vision and can easily see movement and run to safety. Retail traders in the Forex market are prey. Yet our eyes are on the front of our heads...predators. Could this be why we don't understand price action at times? Maybe we are seeing it from the wrong perspective. There is a Grizzly Bear in the woods tracking your every move waiting for one mistake. (I have been trailed by a Grizzly). When you as a predator are being trailed by a Grizzly you then become prey. At this point are you thinking like a predator?
So the point of all this.
To think outside the box that was made for you as a trader 1000's of years ago. The Grizzly is a master hunter and understands supply and demand. The banks are master hunters and understand supply and demand. Now where do you fit into this picture? Now how do you profit from it?
Have a good weekend with food for thought.
Rufus
It's Saturday morning and I felt like writing something here.
Supply/demand trading is a concept that has been around for centuries if not millenniums. So with that in mind do you think the fabricators of these zones (Big Money) is aware of what they are doing and the tracks they leave on the chart? Why will price blow through a very strong zone like shit through a goose only to be stopped by something that looks insignificant? Or are they going to leave billions of dollars, pounds, yens and euros dormant for weeks just because it is a zone? Every day I am thinking about trading and how my life interacts with theses questions and many more.
The point of this is to realize that trading is much more then marking a zone and placing orders, a monkey can do that, and the monkey pays the price. Would Wallmart sell bathing suits in North America in December? But they will sell them in Australia. Is the Forex market any different?
I have spent a lot of time in the woods doing various activities. The tracks left behind by various critters tell a story if you are willing to take the time to read it. Where they go for water, food, safety or bed down can all be seen once you learn what you see. The same holds true for the tracks left in the market. To me reading price is much more then what price is doing now or what it did to the left. What is the "intent" of the price now? What was it yesterday? Why does a deer pause at the edge of the woods before stepping out into a meadow to graze? All issues of supply and demand.
So some things to think about.
1. What is the intent of the money behind the move.
a. Right now
b. This week
c. last month
2. What time of day is the best time for those in charge to accomplish their intents.
If a bank wants to fill billions of dollars in orders and a 4h zone is hit with the opening of the Aussie session is it going to happen? Usually it is like selling surfboards to cowboys. Sure some will buy but usually not a very good marketing strategy. Is a cougar going to hunt for deer in the middle of the afternoon? It is all supply and demand.
The animal kingdom is made up of two types of critters, predators and prey. Predators have their eyes on the front of their head. This enables them to focus all their intention to the prey that is hunted, the deer who does not pause at the edge of the meadow. Prey's eyes are on the side of their head. They have a much wider field of vision and can easily see movement and run to safety. Retail traders in the Forex market are prey. Yet our eyes are on the front of our heads...predators. Could this be why we don't understand price action at times? Maybe we are seeing it from the wrong perspective. There is a Grizzly Bear in the woods tracking your every move waiting for one mistake. (I have been trailed by a Grizzly). When you as a predator are being trailed by a Grizzly you then become prey. At this point are you thinking like a predator?
So the point of all this.
To think outside the box that was made for you as a trader 1000's of years ago. The Grizzly is a master hunter and understands supply and demand. The banks are master hunters and understand supply and demand. Now where do you fit into this picture? Now how do you profit from it?
Have a good weekend with food for thought.
Rufus
Illegitimi non carborundum - Noli pati a scelestis opprimi.