Came across this old thread which may or may not have relevance :-
https://www.forexfactory.com/showthread.php?t=713972
Just ignore the sales patter.
https://www.forexfactory.com/showthread.php?t=713972
Just ignore the sales patter.
Money management: Capital needed per 0.07 USD per microlot 0 replies
The Volume Detective 411 replies
DislikedRevisiting gaps... I have been doing a manual research, with the assistance of the gap indicator, to find a possible reason as to why some gaps do not get filled immediately. During the research I noticed a pattern - some gaps do not get filled for a very long time if the gap occurs immediately after the price has recently visited the same area. On the attachments the price has visited the gap area via wave AB. Did anyone have a look into that? {image} {image}Ignored
DislikedCame across this old thread which may or may not have relevance :- https://www.forexfactory.com/showthread.php?t=713972 Just ignore the sales patter.Ignored
Disliked{quote} @Pumi -- aren't those price gaps (as opposed to liquidity gaps)? Price gaps don't need to be filled. There was no spike (perturbation) caused by the MM -- hence, no cleanup was necessary. Hence no Zone #2.Ignored
Disliked{quote} Thanks robots4me. I was also looking at the economic events that occurred during that weekend (Spring Meeting of the World Bank Group-IMF) as well as other weekend's economic events where the gap was filled. It might be off-track but I think to get a better understanding of George's theory I think I will have to apply my mind and ask such questions as "Why" bearing in mind that the MM can use news for spikes. Yes there is no change in direction from those attached charts.Ignored
DislikedBeen experimenting with LGs abit more and thinking about how to trade them (zone 2 as you would call them R4M.) We notice that LGs very often get filled but the MM also keeps a big portion of them open for later use (or maybe some will never get filled.) I've been trying to wrap my head around how we can benefit from the ones that are being (partially) filled without going into huge DD's when keeping our trades open, maybe once in a while that trade will never be closed and we will run out of equity. So what if we open a trade, exactly to the pip...Ignored
DislikedLG are used as false S/R, all the people agglomerate around believing its strong and its not, its in fact butter (law of minimum effort for the MM) {image}Ignored
DislikedYes but I haven't tried it yet. I only posted the thread link because I saw charts with the word "herd" on them.Ignored
Disliked{quote} @rosalieone -- okay -- I think I can see what you mean. And I have a couple of comments / questions: 1. Liquidity gaps are not well known and are difficult to spot (without an indicator). I have a hard time imagining the MM using them as a false S/R to lure traders. In contrast, TOPS and BOTTOMS are well-known and commonly used to create S/R. This is what @George pointed out and why he suggested we all manually draw target levels and watch how precisely the MM takes them out. 2. Let's say LGs are used as false S/R to lure traders while the...Ignored
Disliked{quote} Hey r4me, first i want to thank you for your last couple of post that summarise MM manipulation view of markets. Really insightful. Thanks Sir. I think what we can deduce from rosalieone screenshot is that when you see a liquidity gap you need to get ready to fade it. The fading starts at the TMA pressure zone. You talked about "The more bands the price breaks through then, presumably, the stronger the perturbation". Well it is not about the breaks but about return of price back to LG. Look at LongBTC screenshot (https://www.forexfactory.com/showthread.php?p=12279294#post12279294)....Ignored
Disliked{quote} @Weyk -- thanks for your post. {image} I'm missing something. I don't understand the significance of the MM nibbling away at a liquidity gap. Is that supposed to be a signal to open a trade? If it is suppose to serve as a clue for direction, I don't think I need it. I mean, if it's a bullish liquidity gap then I'll be looking to go SHORT, and if it's a bearish liquidity gap I'll be looking to go LONG. Take a look at the image above and all the red rectangles. They show the MM beginning to nibble away at a liquidity gap, and then backing-off...Ignored
Disliked{quote} Well... I'am not the most knowledgeable to answer the nibbling part. I'am still learning what George told us. BUT, when i look at your screenshot i just see the opportunity. Nibbling doesn't concern me. Look, almost all those lg price returned to. There is one that price didn't return and it stays in another liquidity gap... So the important question is to look at the conditions when price doesn't return to LG in relationship to bands, in relationship to other liquidity gaps and other filters that George has talked about. Regards.Ignored
QuoteDislikedSo the important question is to look at the conditions when price doesn't return to LG in relationship to bands, in relationship to other liquidity gaps and other filters that George has talked about.
Disliked{quote} {quote} But why? If all I want to do is open a BUY or SELL position, then how does looking at conditions when price doesn't return to the LG help? I don't mind referring to it as another S/R level. When you overlay one of the TOPS and BOTTOMS indicators you'll see that they create target levels that correspond with unfilled liquidity gaps. So, it seems sort of redundant. That is, you can (a) visualize target levels (fake S/R) using unfilled liquidity gaps, or (b) visualize target levels (fake S/R) using a TOPS and BOTTOMS indicator. Sorry...Ignored
Disliked{quote} I might be wrong but maybe Weyk is saying can anything be learnt from a trade that did not work, which can be applied to the rules when entering any new trade,remember we are always looking right on the chart. If there are a lot more winning trades then getting the odd loss will not matter. The best thing is to come up with a standard set of rules and then forward test to see how the results pan out. If members trade different pairs/TF's then we will get feedback quickly and adapt the rules if need be.Ignored
Disliked{quote} I might be wrong but maybe Weyk is saying can anything be learnt from a trade that did not work, which can be applied to the rules when entering any new trade,remember we are always looking right on the chart. If there are a lot more winning trades then getting the odd loss will not matter. The best thing is to come up with a standard set of rules and then forward test to see how the results pan out. If members trade different pairs/TF's then we will get feedback quickly and adapt the rules if need be.Ignored
QuoteDislikedmaybe Weyk is saying can anything be learnt from a trade that did not work