NO MATTER THE SITUATION,NEVER LET YOUR EMOTIONS OVERPOWER YOUR INTELLIGENCE
The Equilibrium, a key to success!
- #222
- Feb 4, 2018 5:28am Feb 4, 2018 5:28am
- Joined Dec 2017 | Status: //houston ǝʍ have a probl | 2,685 Posts
Forget:That does not work, amateurs build the ark, pros the Titanic!
- #223
- Feb 4, 2018 5:32am Feb 4, 2018 5:32am
- Joined Dec 2017 | Status: //houston ǝʍ have a probl | 2,685 Posts
Forget:That does not work, amateurs build the ark, pros the Titanic!
- #224
- Feb 4, 2018 5:46am Feb 4, 2018 5:46am
- Joined Feb 2016 | Status: Trader | 2,511 Posts
Precise Execution!
- #225
- Feb 4, 2018 6:00am Feb 4, 2018 6:00am
- Joined Dec 2017 | Status: //houston ǝʍ have a probl | 2,685 Posts
Forget:That does not work, amateurs build the ark, pros the Titanic!
- #226
- Feb 4, 2018 10:12am Feb 4, 2018 10:12am
- | Membership Revoked | Joined May 2015 | 2,903 Posts
Factory of vanities Dear Traders, Since the end of the year 2017 I am now a member of Forex Factory and I am pleased about the rich offers presented here. With 500,000 members, Forex Factory is one of the largest community in CFD and futures. One can therefore assume that the best traders in the world are ready for an exchange here. The overwhelming majority work together constructively and helpful. What I do not like is how a small minority of people interact with each other. There are experienced traders who have been helping and supporting people...
Try not to allow yourself to be rattled by virtual things aka "What does the moon care about when the dog barks at it or: like water off a duck's back."
Hope you had a fabulous weekend and you're ready for a new trading week!
- #228
- Feb 4, 2018 1:54pm Feb 4, 2018 1:54pm
- Joined Dec 2017 | Status: //houston ǝʍ have a probl | 2,685 Posts
Forget:That does not work, amateurs build the ark, pros the Titanic!
- #230
- Feb 5, 2018 12:51am Feb 5, 2018 12:51am
- Joined Dec 2017 | Status: //houston ǝʍ have a probl | 2,685 Posts
Why it is sometimes advantageous to be just a small trader.
Hello dear traders,
When I started trading many years ago, I realized that in the Forex market, I'm just a small fish in the big shark tank and this situation will never change. So what does a little fish do in the shark tank? He uses the opportunities he has!
There are three types of fish in the shark tank. First, the sharks, which eat the small fish. Then the fish that are eaten and the cleaner fish. This fish species cleans the teeth of predators and they are not eaten.
When two rival sharks fight each other, the cleaner fish is ignored. He waits for the winner to clean his teeth afterwards.
In the Forex market the sharks are the big players, the fish that are eaten are the small or medium traders who do not know how the market works. The Cleaner fish are the kind of traders who know roughly how the sharks react in the big shark tank. And that is exactly the key.
If you know the basics of supply and demand, you have a distinct advantage over the big players. You do not notice so easily in the market.
While the big players leave their mark on the market (through strong candles), you are so small that no one can identify your tracks. But you can not go on a track with the other traders, many small traders are in addition like a middle player and their tracks can easily be identified as a big player.
So we stay away from the tracks of most traders and we will not be discovered that easily. Of course there is an orderbook where all buy and sell orders are listed. The big players pay attention in the market to where most orders are. This approach sounds easier at first than it actually is.
The secret lies in the price chart. Delete unnecessary indicators from your chart and concentrate on the essentials. That's the price. Supply and demand regulate the price. So the key question is whether supply is stronger than demand or demand is stronger than supply. This can be well identified with the Equilibrium. Balance means uncertainty in the market. At this price level, supply was just as strong as demand. Curiously, these equilibrium zones (POC) point of control are often responsible for a strong trend change.
Let's take a look at EURUSD's 1H chart image. I have partially identified and drawn the POC lines from 2014. An exact explanation exists in the post 195.
I tried using the Momentum Candle Indicator to visualize the key momentum. You can see how the momentum behaves in or at the POC. Within 2 weeks, the momentum has responded 20 times and thus initiated a new trend, or confirmed the old trend.
Is that pure coincidence or just luck? Unfortunately I can not answer that. If coincidence or just luck, I have these factors in recent years, my income thanks.
I have once drawn here 2 bullish and a bearish line. As you can see, certain price zones are used again and again to move the price into a trend. Is that also coincidence or luck?
Whatever it may be, what matters is what we conclude and implement from these findings. To avoid the suspicion, I would have picked out a special chart, I just took the latest chart (until Friday evening)
Take a currency pair and take a closer look at the chart image. Record your POC. You will be surprised what you discover. Put it to work for you and build a trading idea with you, which you strategically implement with the right money management.
It always looks so easy, but it means a lot of work and training.
Because being a cleaner fish from time to time, not being discovered so often and sometimes being pulled up or down by the big shark is worth the training.
It will not always work, I have often failed because my assessment was wrong. But I learned from it and developed further. It's not as easy as I thought in the beginning. Holding on is an important trait in trading, and good money management is crucial.
I wish you a very successful week
Greetings Michael
Hello dear traders,
When I started trading many years ago, I realized that in the Forex market, I'm just a small fish in the big shark tank and this situation will never change. So what does a little fish do in the shark tank? He uses the opportunities he has!
There are three types of fish in the shark tank. First, the sharks, which eat the small fish. Then the fish that are eaten and the cleaner fish. This fish species cleans the teeth of predators and they are not eaten.
When two rival sharks fight each other, the cleaner fish is ignored. He waits for the winner to clean his teeth afterwards.
In the Forex market the sharks are the big players, the fish that are eaten are the small or medium traders who do not know how the market works. The Cleaner fish are the kind of traders who know roughly how the sharks react in the big shark tank. And that is exactly the key.
If you know the basics of supply and demand, you have a distinct advantage over the big players. You do not notice so easily in the market.
While the big players leave their mark on the market (through strong candles), you are so small that no one can identify your tracks. But you can not go on a track with the other traders, many small traders are in addition like a middle player and their tracks can easily be identified as a big player.
So we stay away from the tracks of most traders and we will not be discovered that easily. Of course there is an orderbook where all buy and sell orders are listed. The big players pay attention in the market to where most orders are. This approach sounds easier at first than it actually is.
The secret lies in the price chart. Delete unnecessary indicators from your chart and concentrate on the essentials. That's the price. Supply and demand regulate the price. So the key question is whether supply is stronger than demand or demand is stronger than supply. This can be well identified with the Equilibrium. Balance means uncertainty in the market. At this price level, supply was just as strong as demand. Curiously, these equilibrium zones (POC) point of control are often responsible for a strong trend change.
Let's take a look at EURUSD's 1H chart image. I have partially identified and drawn the POC lines from 2014. An exact explanation exists in the post 195.
I tried using the Momentum Candle Indicator to visualize the key momentum. You can see how the momentum behaves in or at the POC. Within 2 weeks, the momentum has responded 20 times and thus initiated a new trend, or confirmed the old trend.
Is that pure coincidence or just luck? Unfortunately I can not answer that. If coincidence or just luck, I have these factors in recent years, my income thanks.
I have once drawn here 2 bullish and a bearish line. As you can see, certain price zones are used again and again to move the price into a trend. Is that also coincidence or luck?
Whatever it may be, what matters is what we conclude and implement from these findings. To avoid the suspicion, I would have picked out a special chart, I just took the latest chart (until Friday evening)
Take a currency pair and take a closer look at the chart image. Record your POC. You will be surprised what you discover. Put it to work for you and build a trading idea with you, which you strategically implement with the right money management.
It always looks so easy, but it means a lot of work and training.
Because being a cleaner fish from time to time, not being discovered so often and sometimes being pulled up or down by the big shark is worth the training.
It will not always work, I have often failed because my assessment was wrong. But I learned from it and developed further. It's not as easy as I thought in the beginning. Holding on is an important trait in trading, and good money management is crucial.
I wish you a very successful week
Greetings Michael
Forget:That does not work, amateurs build the ark, pros the Titanic!
- #232
- Feb 6, 2018 5:03am Feb 6, 2018 5:03am
- Joined Dec 2017 | Status: //houston ǝʍ have a probl | 2,685 Posts
Forget:That does not work, amateurs build the ark, pros the Titanic!
- #234
- Feb 6, 2018 11:29pm Feb 6, 2018 11:29pm
- Joined Dec 2017 | Status: //houston ǝʍ have a probl | 2,685 Posts
With the POC to a higher probability
Hello dear traders,
Here is an example for the identification of a decisive balance.
Between 12.01.18 and 15.01.2018 an important equilibrium was formed in the 1H chart. (Point1)
This I marked myself with a red line. At point 2 and point 3 you could see very well how the drawn resistance zone worked well. When the course hit the resistance for the third time, I was cautious as my resistance was no longer fresh. Suddenly the course broke through to point 4, then turned and went up 370 pip. At first I thought of a fake breakout, but that was not one.
I looked at point 5 and as you can see there could be a balance. In the 30 minutes and 15 M chart was really nothing to recognize. Only the 5 minute chart gave an information.
When I analyzed the 5-minute chart, I noticed a balance, but this could not be responsible for the strong urge to move up.
So I had to go back to December 2014. As you can see, the course fell down sharply there. That's why I had to take a closer look at this POC line in a smaller timeframe.
Everything was clear now. As you can see, this is a strong resistance zone. The small balance that I recognized only in the 5 minutes chart, was a kind of confirmation that the course could come in here again.
On the 4H chart you can clearly see how important this resistance zone has been. Of course you could have worked here with a big stop, but that's not my approach.
From the chart of 2014, I have once drawn possible resistance lines, in case the course comes in there again. I can not predict if the course will continue to go up or down. I can draw in my POC and see how the course behaves there. If the course returns to this POC I am prepared.
No-one can predict the future, but after analyzing the POC from 2014, I was more likely to expect the January 15 price to be bullish now. And that information was worth a lot to me.
Now the question of all questions is: is it going further down or up?
Basically, I'm going from a green candle in the annual chart this year. However, I expect again a return to 1.17900. How that develops, the POC help me.
I wish you a nice week
Hello dear traders,
Here is an example for the identification of a decisive balance.
Between 12.01.18 and 15.01.2018 an important equilibrium was formed in the 1H chart. (Point1)
This I marked myself with a red line. At point 2 and point 3 you could see very well how the drawn resistance zone worked well. When the course hit the resistance for the third time, I was cautious as my resistance was no longer fresh. Suddenly the course broke through to point 4, then turned and went up 370 pip. At first I thought of a fake breakout, but that was not one.
I looked at point 5 and as you can see there could be a balance. In the 30 minutes and 15 M chart was really nothing to recognize. Only the 5 minute chart gave an information.
When I analyzed the 5-minute chart, I noticed a balance, but this could not be responsible for the strong urge to move up.
So I had to go back to December 2014. As you can see, the course fell down sharply there. That's why I had to take a closer look at this POC line in a smaller timeframe.
Everything was clear now. As you can see, this is a strong resistance zone. The small balance that I recognized only in the 5 minutes chart, was a kind of confirmation that the course could come in here again.
On the 4H chart you can clearly see how important this resistance zone has been. Of course you could have worked here with a big stop, but that's not my approach.
From the chart of 2014, I have once drawn possible resistance lines, in case the course comes in there again. I can not predict if the course will continue to go up or down. I can draw in my POC and see how the course behaves there. If the course returns to this POC I am prepared.
No-one can predict the future, but after analyzing the POC from 2014, I was more likely to expect the January 15 price to be bullish now. And that information was worth a lot to me.
Now the question of all questions is: is it going further down or up?
Basically, I'm going from a green candle in the annual chart this year. However, I expect again a return to 1.17900. How that develops, the POC help me.
I wish you a nice week
Forget:That does not work, amateurs build the ark, pros the Titanic!
- #236
- Feb 7, 2018 1:36am Feb 7, 2018 1:36am
- Joined Dec 2017 | Status: //houston ǝʍ have a probl | 2,685 Posts
Forget:That does not work, amateurs build the ark, pros the Titanic!
- #237
- Feb 7, 2018 7:25am Feb 7, 2018 7:25am
- Joined Dec 2017 | Status: //houston ǝʍ have a probl | 2,685 Posts
The tricks of high frequency traders
Hello dear traders,
As already described in some articles, today's big players are working with strategies that bring major disadvantages for us smaller traders.
This refers to the so-called high-frequency traders, which make up on some days up to 50% of the trading volume. They work with incredibly fast computers and programs. The speed of these programs is enormous, they can respond to price changes within milliseconds, allowing them to get into the market faster and out again.
We're talking about professional scalpers cutting out small pieces of the trading cake. You're investing millions in your hardware and software because it's about billions of profits. You place your computers as close as possible to the respective stock exchange, because every millisecond counts.
Traders who do not work with such a technique are clearly at a disadvantage.
You can clearly see the difference between Metatrader 4 and Metatrader 5. Compared to the high frequency traders, this is ridiculous, but still a big advantage for me. The speed order to place is much faster. Disadvantage: Long and short positions can not be held simultaneously in a single underlying. As a scalper, that does not matter to me. If your or execution is too slow, try Metatrader5, if your broker grants you that option. With the Metatrader 4, I would continue to work to use your proven indicators.
In addition to the tremendous speed, these high-frequency traders have a few tricks in store that are a little worrying on closer inspection.
They are able to change the picture of supply and demand in such a way that the investors are confused and thereby suffer considerable disadvantages with fast and mass orders.
Although these companies achieve only low profits, but the high number of orders come together in the month considerable sums together. The looser are the long-term investing funds and pension funds - and of course the classic retail investors.
Let's take a look at the tricks in detail.
Wash Trades: I have already described this approach in previous posts and is particularly controversial. The trader trades in here with himself. He hunts his buy order up to his sell limit or high, which then pushes the price down immediately. Or, in a rising market, a turnaround is suggested in order to buy cheaper again before the market turns sharply higher again. The goal is to squeeze traders out of the market or move them into transactions that they probably would not have done in other circumstances.
Quote Stuffing: Thousands of orders are abandoned and then immediately deleted. Thus, the high-frequency dealers generate a false picture of the existing relationship between supply and demand. The other traders can not analyze these orders in the short term and are confused. Since they do not know which orders are correct and which are only mock orders, this gives the high-frequency traders a time advantage, since they know their correct orders.
If several trading systems compete against each other, quota stuffing is often used as a very effective weapon.
Spoofing: The goal of outsmarting other program traders. The own system is tuned to analyze, anticipate and exploit the reactions as well as the functioning of other algorithms. The market participants should also be moved by the illusion of certain constellations to a desired reaction.
Sniping: With small, quickly issued orders, the market is searched for hidden orders. The goal of finding large buy and sell limits of other traders. Just before these thresholds, which promise the release large orders, then the own orders are placed. The limit order of the other participants will be triggered much later.
Scalping: Here is the decisive advantage, the speed of the systems. As soon as the system detects large order volumes, they are on the market at lightning speed. So they can still buy cheaper than the other dealers. Even before you can govern, the high-frequency traders are already out and the course immediately turns in the other direction. The slow traders are virtually eaten.
This approach can not foresee any indicator of the world. That's why I recommend looking for clues. By looking at the pure price charts, you get better with time. The POC are the tracks that leave everyone behind. We must learn to read and implement these traces. There are few ways to protect yourself from these tricks, Equilibrium is the most effective way for me to make a positive assessment at the end of the month.
I wish you a successful week
Forget:That does not work, amateurs build the ark, pros the Titanic!
- #240
- Feb 7, 2018 11:54pm Feb 7, 2018 11:54pm
- Joined Dec 2017 | Status: //houston ǝʍ have a probl | 2,685 Posts
Forget:That does not work, amateurs build the ark, pros the Titanic!