Does buy low sell high apply to prices way back? | Forex Factory

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Does buy low sell high apply to prices way back?

  • #1
  • First Post: Nov 20, 2015 5:47am Nov 20, 2015 5:47am
I am talking about pair the USDCAD which on the monthly started up so high in 2002 then slowly dropped down and then recently rose up to about 50% of how this pair started out in 2002.

It is reaching newer highs in recent month and the last high was in year 2009 which price has now overshot.

My question is were you to trade this pair do you look at the beginning of the chart from year 2002 and compare it to price right now in which case it wouldn't be considered a high since price is now rising up around 50% from year 2002 but were you to compare it to more recent times say around year 2009 which was a lower high compared to price today obviously price would be considered a high and in fact overbought.

So how do you judge if a pair is in a high or a low? Do you look right at the beginning or look at the most recent high/low?
  • #2
  • Nov 20, 2015 5:53am Nov 20, 2015 5:53am
Quoting forex_fairy
I am talking about pair the USDCAD which on the monthly started up so high in 2002 then slowly dropped down and then recently rose up to about 50% of how this pair started out in 2002. It is reaching newer highs in recent month and the last high was in year 2009 which price has now overshot. My question is were you to trade this pair do you look at the beginning of the chart from year 2002 and compare it to price right now in which case it wouldn't be considered a high since price is now rising up around 50% from year 2002 but were you to compare...
Its pretty simple/// If it's going to 1.4155 then buying here at 1.3306 would be buying low right?

Attached Image (click to enlarge)
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Time hides Nothing
  • #3
  • Nov 20, 2015 5:54am Nov 20, 2015 5:54am
Enter your conundrum
Time hides Nothing
  • #4
  • Edited Nov 21, 2015 5:39am Nov 20, 2015 6:37am | Edited Nov 21, 2015 5:39am
Quoting forex_fairy
So how do you judge if a pair is in a high or a low? Do you look right at the beginning or look at the most recent high/low?

Your question really relates to the broader issue of how much weight, and in what proportions, to give to highs and lows at various points, I think.

It's subjective, and everyone has their own ideas about it, of course. Personally, I give more weight in my assessments to highs and lows which are (a) more recent, (b) multiple/extended ("many touches of lines there"), and (c) at levels at which support has previously become resistance or vice-versa.
  • #5
  • Nov 20, 2015 7:38am Nov 20, 2015 7:38am
Buying low and selling high definitely works.

Just pick the lowest point and buy there then pick the highest point and sell there.

But it doesnt end there, im not sure if you notice but each trading day also has its own low and high point. Therefore you stand to gain so much more by buying the low of each day and selling at the high. Quite simple really.
  • #6
  • Nov 20, 2015 7:41am Nov 20, 2015 7:41am
Quoting Atokys
Buying low and selling high definitely works. Just pick the lowest point and buy there then pick the highest point and sell there. But it doesnt end there, im not sure if you notice but each trading day also has its own low and high point. Therefore you stand to gain so much more by buying the low of each day and selling at the high. Quite simple really.
This is exactly the same as saying only enter in a trade if it's going to be a winner.
  • #7
  • Nov 20, 2015 7:49am Nov 20, 2015 7:49am
Quoting Kilian19
{quote} This is exactly the same as saying only enter in a trade if it's going to be a winner.
Indeed.

Im only providing OP with the best answer to his question. If I were to have traded the pair given full knowledge of where the low and high would be then I would have traded that way.
  • #8
  • Nov 20, 2015 2:06pm Nov 20, 2015 2:06pm
not really sure what you mean, but I think you mean if you should look on the past data to trade the future?
recent prices has nothing much to do with the future prices unless it is contained within a channel or something,
and recent support and resistance levels ofcourse needs to be watched carefully,
there is no price that is to high or low compared to the past,
overbought and oversold only apply to the indicator, not price,
ofcourse it is better to buy low and sell high
but how high is high and how low is low? nobody knows
Bulls are stupid Animals!especially when Im short!
  • #9
  • Last Post: Edited 7:02pm Nov 20, 2015 5:24pm | Edited 7:02pm
If you want to know the height of the mountain, measure the height. If you want to know how high this mountain is relative to all the mountains then compare it's height with all the mountains. If you want to know how high this mountain is within a mountain range then compare it's height with the peaks of the mountain range. The rate of change of it's height at a certain height may suggest if this mountain peak will rise higher or not. If tectonic plates are known to clash then mountain peaks in the region can be expected to change their height dramatically(orogenic process). The age( neotectonics) is another indicative factor and so on. The same may be applied to price.
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