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Market mechanics

  • #121
  • Jan 25, 2019 3:00pm Jan 25, 2019 3:00pm
the game is over now
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  • #122
  • Edited 3:18pm Jan 26, 2019 3:02pm | Edited 3:18pm
Market doesn't always move just buyers and sellers.
You have to know how the interbank system works with the liquidity providers.

I focus on liquidity and volatility for my trades Rather then trends and channels.
I know price will often overshoot and then have to pull back, giving much more two way
action then one way trending.

I know certain times of day price tends to move and other times of day tends to be flat.
I am hyper-aware of these times and use it in decision making.

If you want to dive deep into how the interbank works with all the players
and learn about how the market really works, you can find info on the web and on youtube.
Doing this research may even lead you to finding your edge.
The only system that will work is one designed by and for yourself.
  • #123
  • Jan 26, 2019 3:55pm Jan 26, 2019 3:55pm
Quoting WSoar
Hello and happy new year everyone. Newbie trying to learn so bear with me. I have questions, would like to hear your opinions. So first question: Books and trading websites say that currency pair charts go up/down because: 1.There is more buyers/sellers 2.One of the currency appreciate/depreciate. They also tell us that if currency pair doesn't move much in any direction (stays flat/range) it means that both currencies in that pair is equally strong/weak. So... Here is a thing Let's look for example at Gbp/Usd during the London session(only London...
I wouldn't try to figure out what the price will do next because by definition, you'd be guessing. Instead, focus on a strategy that is able to survive in both ranging and trending markets. Your strategy will be better at one more than the other but it (should) be able to survive during both.

Do that and then you'll stop all these guessing games and you'll focus on trading in a completely different way not wasting time with economies of the world, interest rates, news, etc.
  • #124
  • Jan 27, 2019 4:53am Jan 27, 2019 4:53am
I also believe that your strategy should receive more profit than losses in the trend and in the channel. In this case you will trade successfully. And to understand how the market works is unlikely to succeed.
  • #125
  • Jan 29, 2019 1:48pm Jan 29, 2019 1:48pm
Quoting mlaci65
[quote = WSoar; 11919496] {quote} A harmadik szórakoztató tény, az emberek, mint a mlaci65, azt hiszik, hogy a mutatók valamit megjósolhatnak. The second fun fact you can't make money on that since arbitrageurs closed the inefficiency already. I see no point checking cross-covariances because basically you get same information about the market state. END bla bla bla {image}
Mlaci nice indicator.

Since the vast majority of fx volume is in USD and EUR, what is the point in including CAD and CHF pairs for example as the volume traded on those pairs will not influence a price change in the rest?
  • #126
  • Jan 29, 2019 2:19pm Jan 29, 2019 2:19pm
Quoting mlaci65
the game is over now{image}
Could you explain your trade? Please.
  • #127
  • Feb 2, 2019 6:05pm Feb 2, 2019 6:05pm
  •  WSoar
  • | Joined Jun 2018 | Status: It's a businessNot "Get rich quick" | 56 Posts
Are "minors" worth to trade?
Everybody start from newbies to "educational" websites almost screaming that minor currency pair crosses(Gbp/Jpy, Eur/Nzd and so on) are very rewarding in terms of a pip movement...Look at that 100-200pips moves on Gbp/Nzd!
But... Let's make a little research.
Every "major" will reward you with a 1$ for a 1 pip move on 0.1 standart lot size.
No "minor" has same reward.
OK. Going further.
Let's say you want to buy Gbp/Nzd, there is several ways in which it can go higher:
1.Gbp/Usd goes higher while Nzd/Usd stays flat.
2.Gbp/Usd goes higher while Nzd/Usd goes lower.
3.Both Gbp/Usd and Nzd/Usd are going higher but Gbp/Usd goes higher "stronger".
4.Both Gbp/Usd and Nzd/Usd are going lower but Nzd/Usd goes lower "stronger".
OK? Going further.
The only reasonable decision to buy Gbp/Nzd will be if you are in option #4 because even if you failed to recognize that USD is strong you will still get you some pips.
Why the only one? Let's look at option #1:
You buy Gbp/Nzd
Gbp/Usd goes higher for ~50 pips while Nzd/Usd stays flat(~5pip range back and forth)
Gbp/Nzd is up for ~50 pips... Ok...but while you will get a 50$ with 0.1 standart lot for a 50 pip move on Gbp/Usd you will get only ~ 34.5$ plus the bigger spread on Gbp/Nzd.
Yes, there is "minors" like Eur/Gbp which bring same or even higher pip value but they are not much in a move...maybe on news releases...
So... Is it really worth to trade the "minors"?
What do you think guys?
==
  • #128
  • Feb 2, 2019 6:44pm Feb 2, 2019 6:44pm
Quoting WSoar
Are "minors" worth to trade? Everybody start from newbies to "educational" websites almost screaming that minor currency pair crosses(Gbp/Jpy, Eur/Nzd and so on) are very rewarding in terms of a pip movement...Look at that 100-200pips moves on Gbp/Nzd! But... Let's make a little research. Every "major" will reward you with a 1$ for a 1 pip move on 0.1 standart lot size. No "minor" has same reward. OK. Going further. Let's say you want to buy Gbp/Nzd, there is several ways in which it can go higher: 1.Gbp/Usd goes higher while Nzd/Usd stays flat....
I wouldn't pay attention to any of that nonsense. Pick a pair to trade that has a reasonable spread relative to its movements. For example, GBPNZD may have a 3 to 5 pip spread but it's also a beast and makes moves like no other (relative to its spread). The same with GBPCAD. You'll know which pair to trade after you have a strategy. Because you have no strategy, you also don't know which pair should be traded.
  • #129
  • Feb 2, 2019 8:46pm Feb 2, 2019 8:46pm
  •  WSoar
  • | Joined Jun 2018 | Status: It's a businessNot "Get rich quick" | 56 Posts
Quoting spotrate
{quote} I wouldn't pay attention to any of that nonsense. Pick a pair to trade that has a reasonable spread relative to its movements. For example, GBPNZD may have a 3 to 5 pip spread but it's also a beast and makes moves like no other (relative to its spread). The same with GBPCAD. You'll know which pair to trade after you have a strategy. Because you have no strategy, you also don't know which pair should be traded.
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  • #130
  • Feb 2, 2019 9:27pm Feb 2, 2019 9:27pm
Quoting WSoar
{quote} {image}
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  • #131
  • Feb 2, 2019 10:48pm Feb 2, 2019 10:48pm
Quoting WSoar
Are "minors" worth to trade? Everybody start from newbies to "educational" websites almost screaming that minor currency pair crosses(Gbp/Jpy, Eur/Nzd and so on) are very rewarding in terms of a pip movement...Look at that 100-200pips moves on Gbp/Nzd! But... Let's make a little research. Every "major" will reward you with a 1$ for a 1 pip move on 0.1 standart lot size. No "minor" has same reward. OK. Going further. Let's say you want to buy Gbp/Nzd, there is several ways in which it can go higher: 1.Gbp/Usd goes higher while Nzd/Usd stays flat....

Well I do not go into so much reflexion, when I see a valid pattern I take it, no matter which currency, I just take care to not have too much exposure on correlated pairs.
LDFX Trading Ltd
  • #132
  • Feb 3, 2019 6:11am Feb 3, 2019 6:11am
  •  WSoar
  • | Joined Jun 2018 | Status: It's a businessNot "Get rich quick" | 56 Posts
Quoting spotrate
{quote} {image}
It's funny how you pointing at my English skills yet you can't comprehend it by yourself.

It's a trading forum and I don't care about what you think about my English. In fact you are the first person who complain about my English, so...maybe it's your problem?
==
  • #133
  • Last Post: Feb 4, 2019 11:49am Feb 4, 2019 11:49am
Quoting WSoar
{quote}
if you’re asking if a potential winning trade is worth taking, then yes obviously they are worth trading. But what you are referring to with price moves and strong vs weak, you’re almost always chasing the market that way.
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