{quote} what is the blue and orange for?
First is a short where you have divergence on three value lines. Second is a long where you only have two so less probability.
Anyway I dont want to derail this thread anymore
Boxing clever since 76.
- #30,021
- May 4, 2019 6:14am May 4, 2019 6:14am
First is a short where you have divergence on three value lines. Second is a long where you only have two so less probability.
Anyway I dont want to derail this thread anymore
- #30,022
- Edited 10:53am May 4, 2019 9:30am | Edited 10:53am
- Joined Jun 2016 | Status: PA Pivot Swing Trader | 3,892 Posts
{quote} Yes it will happen throughout the month but at the end of the month is when the major re balancing happens.You will often see articles mentioning this at the end of the calendar month where they one or another currency needs rebalancing. They can either do the adjustment in the stock or the FX markets. It is usually done through FX as their is more liquidity and therefore easier to do. {image}
Thank you for sharing your knowledge here. It seems to me that this re-balancing, or clearing the books, happens many times on Fridays on one or two cross-pairs when Brokers need to balance their books by suddenly widening their spread, or locking you out when the GBP flies up like what happened to me by one Broker yesterday, but not by another Broker - so, I traded the same GBP pairs there with a small profit.
The MMs and other big Fx companies have big daily expenses (Payrolls, Buildings, utilities ), so they will try whatever maneuvers to pick your pockets, besides SL hunting. It is part of the business including the talking-heads Fx News experts on the payroll as well.
So, unless you have an ingenious system that combines anti-MM techniques with some idea of the fundamentals for coming events as graciously shared here by Davit (and others), it is purely gambling and being vulnerable like a "little lamb lost in the woods" - as you well know:
That is my 2 cents on this topic.
Regards,
- John
"What Goes Up, Must Come Down." - (c) Sir Isaac Newton - 1647
- View Post
- Disliked by Thread Starter
- #30,024
- May 4, 2019 3:22pm May 4, 2019 3:22pm
- Joined Feb 2012 | Status: Trader | 21,377 Posts
In trading, you have to be defensive and aggressive at the same time
- #30,026
- May 4, 2019 3:46pm May 4, 2019 3:46pm
- Joined Feb 2012 | Status: Trader | 21,377 Posts
In trading, you have to be defensive and aggressive at the same time
{quote} when you can watch PA go against you and you have the balls to stay calm, collected ,shrewd and can act anytime then you know you have arrived as a trader. When you wet your pants start praying you know you are not there yet.
Last week strong vs weak. Time to buy the discounts and sell the magnified ?
- #30,028
- Edited 4:17pm May 4, 2019 4:04pm | Edited 4:17pm
- Joined Feb 2012 | Status: Trader | 21,377 Posts
{quote} I went my pants but that got nothing to do with trading.
I think your mind is restless.I would suggest not post for a week lag off from here and don't read this thread.Just watch PA and observe how news effects pairs.
You'll learn great deal on trading and yourself.
Cheers.
If anyone wants to do it please do its kind of forum detox.When you are consistently bombarded by posts and everything else you miss the essential that is shrewdly and calmly watching price and making evaluations.Kind of price medication if you will.
In trading, you have to be defensive and aggressive at the same time
{quote} Your probably right at the moment i am over analysing everything and at the moment its midnight here in U.K my Mrs things I am anti-social, all I do is digest every forum, website fx related. I might have a month Davit because i feel exhausted with it all. I suppose i badly want it. I jump in the freezing cold sea every morning 5 am just to clear my mind and connect with a high power to just feel connect with Dreams and goals and hopefully purpose. I am intune with PA i mean i can spend hours talking about price action. Lets look at GU its...
- #30,031
- May 4, 2019 4:27pm May 4, 2019 4:27pm
- Joined Feb 2012 | Status: Trader | 21,377 Posts
In trading, you have to be defensive and aggressive at the same time
- #30,037
- Edited 2:06am May 5, 2019 1:53am | Edited 2:06am
- Joined Feb 2012 | Status: Trader | 21,377 Posts
In trading, you have to be defensive and aggressive at the same time
- #30,038
- May 5, 2019 2:08am May 5, 2019 2:08am
- Joined Feb 2012 | Status: Trader | 21,377 Posts
In trading, you have to be defensive and aggressive at the same time
- #30,040
- May 5, 2019 3:14am May 5, 2019 3:14am
{quote} Hi Copi welcome to Pivots! Nice contributions. I believe Stop hunting is real but its indirect function of large orders trying to get filled.Large orders can't get filled anytime or they may have to pay wider spread and each tic can be worth lot of money hence they need the liquidity to get filled at best possible price therefore hit pockets of Stops and this triggers burst of liquidity and they get filled opposite direction and why most swings basically end with a spike. Also retail traders place 20-30pips below around numbers major S/R...
However its usually done to get off their position and not done during an accumulation.
Below is a diagram of what a usual market accumulation pattern looks like.
The value line (purple starts to go up) so the institutions will want to get long and so will create a pattern of lower lows and lower highs creating the illusion that the market is in a downward trend to encourage sellers into the market. They will then start to accumulate all that selling at a pace so as not to stop the downward move.
They will also cap any move back to the upside ( red boxes) until they have accumulated enough size on their books. Once the detect that selling has started to drop off and no more sellers are coming out to play they will then start the mark up phase. Price moves back into value and starts to pull back. When the market maker detects that buying is now coming in above the 50% pullback level they take this as a warning from the institutions that they want to mark up prices and they pull their liquidity. This is when you get the fast moves away from the balance area.
For them the biggest issue now is how to get off their large buy position. The juxtaposition is that they need to find BUYERS at higher prices. How do they get people to buy something that is more expensive. Well they have created the perfect setup for it. All those sellers have their stops above the market at the red lines.
The institutions term this 'Paycheck' for when they mark up the price through those levels they trigger those stops and those sellers have to become buyers to get off their positions. The institutions have now found their buyers at higher prices and will start getting off their trade in the green box.
The move up is not fuelled by new buyers but rather by the old sellers forced to become buyers.
This is the one advantage retail traders have over the institutions. We can deal anywhere on the chart whereas the institutions cannot due to the size of their positions.
Boxing clever since 76.