The Equilibrium, a key to success!

Dear Mr Bionic,

I am very fortune to find your blog.I read it every single day,trying to identify equilibrium of the market by practing draw supply and demand zone and I hope oneday can using future data to have a depth understanding of the market. As a novice trader of this concept,is this possible if I using line chart to draw equilibrium ?



Thanks and best regards.

Another great post master!
//
No doubt that FX Volume is not reliable & personally I do notice lots of weird fluctuations ... but its easy to understand because Small Money looks at the chart to trade while Big Players dont & the only thing that catch their eye may be Small Money's SLs ... so why not fake st a little, e.g : Volume & VSA traders
...
about your Bid-Ask volume indi ... I think the idea is brilliant. One of the best benifit of using Volume is that you have something independent from Price & advoid the lagging issues ... but as you said your Indi derives from Price & to me thats the problem
perhaps, the only thing we can do is to find a reliable broker & always pray for it? kkk

have a good day master!

[quote=bigdee;12537723]Dear Mr Bionic, I am very fortune to find your blog.

Hello bigdee,

Thanks a lot for the great compliment, maybe this blog has the luck to win you as a future successful trader, because your experiences you make here, are also important for many beginners. Your question is not easy to answer. Basically, there is no right or wrong on the stock market, so you can work with a line chart. While a normal candle receives four pieces of information (OHLC), I only have 3 pieces of information (HLC) to process with the Bionic candle. The line chart is formed exclusively from the close of the price. The disadvantage is that certain highs or lows of a price are not presented. But within the highs and lows, there are often important pullbacks that contain vital information about resistance zones. The smaller the unit of time, the more accurate the line chart becomes. In a 8 Tickchart I could imagine a line chart, but you have to try it yourself. Tomorrow I will post an important contribution to the tickchart. The line chart is very popular with beginners because it does not contain that much information. But for me extensive information is crucial. The more extensive and profound they are, the more accurate statements can be made. However, this refers to the future stock market data. The futures market is significantly lighter than the Forex market, so I would advise any beginner to start with the futures data. Not to trade there, just to use the information. At first glance, the forex market looks easier than the futures market. The brokers lets us believe this, who are making terrific money with it. Just a MT4 download for free, the right indicator and after flowing the millions. That's why ESMA reduced leverage from 1: 1000 to 1:30. Not because the traders are not mature, but to protect them from the tricks of brokers. They make us believe that tomorrow we can be millionaires. The only ones who make millions are the brokers. But there are also some that are fair, but they nevertheless earn more than their customers. A business is good when both have some of it. The brokers have now understood this and some are already on the right track. I know a lot of traders who lost $ 50,000 in the beginning, I just lost a few $ 1,000 at the beginning because I was ready to invest. We all know that what costs nothing is often worth less. Of course this does not always apply and in this case refers only to the stock market. Forex trainer you should avoid, invest in trading software and get to know the futures market, the prices are basically the same as in the Forex market, but with more specific information. Trading futures data in Forex is the optimal alternative. On Youtube you get enough information to educate you for free. But remember, that there is also advertising made to get your money. Here at FF you also get valuable information from professional traders, but here too there are scammers. But this speaks up quickly here at FF and so you can quickly separate the wheat from the chaff. The way you write, you seem to have common sense, so I believe you have a chance if you are willing to work hard and efficiently for the next few years. There is no substitute for experience, and unfortunately it takes a lot of time.

Best wishes

[quote=aPhong;12538071]{quote} Another great post

Hello aPhong,

I agree with you in a few things, but the price and time in Forex is the best representation you can get. The volume is, as I have proved in my last post, definitely wrong. Unfortunately, there is no Bid and Ask in forex, but you can use a tickchart to get closer to a candle and determine certain resistance zones that you can not recognize in a normal time unit. The tickchart is time-independent and, depending on the data stream, also restrictedly independent of the price. I will publish a detailed report tomorrow. I work with a broker that gives me exact price and time data, so for me, profitable trading in forex is possible. Unfortunately, the volume data is wrong, but I have never worked with volume data in forex. That is probably why my losses at the beginning were very small. The candle chart is nothing more than an indicator and it is also derived from the price and time. As well as most of the indicators. In order to have a chance in the forex market, I recommend working exclusively in the tickchart. Of course this is also possible in the timechart, but it takes a lot more years to be profitable. That's just my personal opinion. Incidentally, many analysts of the big players in the forex market are also working with charts to locate the retail traders. Popular instruments include Fibonacci, the EMA 200 and the RSI. To fight one's enemies, one has to know his strategies. This is especially true for the big players because they want our money. And because most of us rely on the Forex data, 95% lose their money. That alone is a reason to look for other alternatives. The odds of winning in roulette (black or red) is 48.6%. The probability to double its wager in the forex market is 1:19 or 5.2%. So it's almost 10 times more likely to win at roulette. In the futures market the probability is 1: 6 or 16.6%. That's three times better than in Forex, but still three times worse than roulette. Since the price on the stock exchange develops randomly, here too it is all about probabilities. We always have to remember who we are trade against in the forex market. These are the best investors in the world, the elite or a world champion team, how should a beginner have a long-term and realistic chance? But hope never dies. The only chance you have is to beat the big players with their own weapons. This includes courage, respect and a very special creativity. And exactly this creativity is analyzed, described and implemented in this blog together with great subscribers and traders.

best regards

[quote=Bionics;12539519] "I agree with you in a few things ..." Its a real honour for me!
Cool statistics as well, Ive been only working with candlestick(OHLC) chart ... so Its going to be interesting to know how to take avantage of tickchart data to increase the odds.
...cant wait for your series posts of TickChart utilization!

have a good day master!
best regards,

Hi Bionics,

1. I read your posts regularly, . Yours insights help me a lot in getting a big picture.

May I request you to split the text in a way that they are a relief to eyes. Please use smaller paras. thank you.

2. Please share your views and tools on how to scan the futures markets for patterns that precede consolidation phase or periods based on three dimensions: vertical range , horizontal time and volume. I want to avoid consolidation stage to enter and suffer psychological pain.

Thank you.

[quote=simnz;12540401]{quote}{quote} Hi Bionics, 1. I read your posts regularly, . Yours insights help me a lot in getting a big picture.

Hallo Simnz,

I'm always happy when readers on this blog can expand their insights and get a better overview of the whole. Thanks also for your comment, to split my text easier. I've been trying for a few years now, but if you think German and write a translation into English is already a challenge. If this text is further then translated into Chinese, it is inevitable that complications will occur. But I will gladly work on it, thank you.

Your suggestion:
Please share your views and tools on how to scan the futures markets for patterns that precede consolidation phase or periods based on three dimensions: vertical range , horizontal time and volume. I want to avoid consolidation stage to enter and suffer psychological pain.

Basically, I would like to point out once again that this blog is a project. A project means that everyone participates to achieve a common goal. If there were new insights, I always shared them immediately in the past. I do not live from this blog and get for my knowledge here no money. It takes a lot of time to write a detailed report and document it with pictures. I like to do it voluntarily and I am happy if I can help beginners and traders. To express oneself wisely is not decisive, but to be understood.. That's why I try to use a simple language. I realize that this is not something everyone likes.

As a scalper I still earn my money with supply and demand within the sideways markets. With 10 years of trading experience in this market, I am far from being a professional. I use my creativity to assert myself in this market. My view of the market is unconventional and may be wrong for some. But in the end, I have to take the risk when I press buy or sell.

Our project # 7 is an attempt to use the futures market data for trading in the forex market. There are certainly a few traders who are trying to do the same, but not in the approach I have been seeking. This project is a journey and it is not about traveling as fast as possible, but arriving rested. Basically, I like to comply with a request, but for me it seems to be more of a claim. Perhaps because of the translation from Chinese into English and then into German, I misinterpreted your issues. If so, you are certainly able to correct the possible misunderstandings .

I wish you a succesfull day
best regards

[quote=aPhong;12539998] Hello aPhong,

You should not consider my approval an honor. In trading, there are hardly any differences between beginners and advanced. The only difference is the experience, nothing more, nothing less. In a random market, a beginner can often be better than a pro. I know that you value me, but I do not feel like a master. I'm not any better than anyone else on this blog. That's why I prefers to call me Michael as master, then I feel better.

Thanks and best regards

Why a tickchart provides the better information


Hello dear traders,

In my last post volume in Forex, I have specifically pointed out why the volume in Forex market can not be displayed correctly. However, the price and time presentation in the forex market is very accurate. Unfortunately, we have only 9 different time units in the MT4 of which a scalper can use the maximum of the M1, M5 and M15. This is a relatively small area where you move. In addition, the information within an M1 is very poor and little meaningful. Although the determined volume from the ticks is not correct, but you have the chance within a tick chart, the prices of the Forex market to break it down better. This makes it easier, especially as a scalper, to detect resistance zones more efficiently and faster. Additionally, within the tick chart you can optimize and change your time units in ticks. This can identify resistance zones that are impossible to recognize for most traders who work in a normal time chart. At the end of the article I will give an example of this claim.



In the picture we compare the EURUSD H4 with the EURUSD in a 16384 tick chart on the forex market. The main advantage of a tick chart lies in the resolution of the individual candles. When volatility is low, fewer candles are formed. With a high volatility significantly more candles are formed, which simplifies the overview and the drawing of resistors. In a breakout, a strong candle in the M1 will not do you any good. With a tickchart you may get a total of 30 candles instead of a candle and can immediately recognize the resistances. We see that the price trend on the chart of H4 and T16384 is almost identical. Under the respective charts is the bit and ask indicator, which I already posted in my last post.



I have now enlarged this indicator to show the differences. It is undisputed that this indicator transmits significantly more information within a 16,384 tick chart. Let us first change to a smaller unit of time to see the concrete benefits.



We are here in the M1 EURUSD. Within 17 minutes, 17 candles are formed. The Bid and Ask indicator also gives you 17 pieces of candle information. For a scalper, that's relatively little information with which he can actually do something.



We now create a 64-tick chart and receive 25 instead of 17 candles during the same period. At the same time, the information in the bid and ask indicator is almost 50% larger.



42 candles are already being created in a 32 tickchart. That's 150% more information in the bid and ask indicator as well.



The 16 Tick Chart already reveals 92 candles within 17 minutes. The Moving Average EMA 200 already gives better information here than in the M1. Personally, I pay less attention to the EMA 200, this should only serve as an example.



For me, the smallest time unit within a tick chart, with which you can still work well, is the T08. While there are 17 candles in the M1, the T 08 already displays 187 candles - 11 times more information. This information is much more meaningful to a scalper, and it makes resistance zones easier to create. If the volatility in the morning is still very low, you can work well with a T08. If the volatility in the afternoon rises sharply, you can relatively easily increase the number of ticks displayed. This flexibility is irreplaceable for me and can not be compared to a timechart.



Now let's compare our bid and ask indicator in the M1 to a T 08. I believe it becomes clear that we get a lot more information in the T08, which we as Scalpers can implement very quickly. If that's too much information for you, you can simply turn up the tickchart. This guarantees your optimal time unit.



The example below is about creating resistance zones within the M1 and T08. The blue arrows mark the zone in question in the different time units. In the T08 you can see how the price has gone up and down again. In addition, two gaps were created, which clearly show the strength up and down. In the M1 you have only one wick in the same period of time with which you can not do anything at all.



Here we see the result that results from the marked resistance zone. This resistance zone could never have been drawn in the M1, as this was simply not apparent. An additional important aspect is the recommendation to work with the Bionic candle. The last pullback in a candle is the deciding factor. This takes into account the Bionic candle. Detailed information can be found on this blog.

As Scalper I work in the tick chart most with the T08, T16, T32, T64, T128, T256 and T512. With one click, I can double or halve the tick units without leaving or changing the offline chart. To get a bigger overview it is not a problem to switch to higher tick units like the T16384. In combination with the Bionic candle, I am thus relatively easily able to determine resistance zones that are not recognizable in a unit of time. A tick arises due to a price change in the forex, which means with a tick chart I am closer to the actual resistance zones than with any other time unit. The downside is that a tickchart is not time-oriented like the M1. However, I do not care about the time and the price. In the forex market, I focus on my resistance zones and currency strength. Accumulation and distribution are much easier to identify in the tickchart than in a time chart. Anyway, I get the crucial information from the futures market, which makes it much easier for me to start a trade. I recommend experimenting with the tickchart to find out if it will personally benefit you. Of course I'm convinced of that, but you have to try it out first. This does not cost money, but valuable time. But as a successful trader, you always have to be prepared to invest, including your valuable time.

Here you get more information about the tick data. In addition, we compared and evaluated some providers of tick data.

Is a tickchart really beneficial?

Addendum to Post 906 Is a tickchart really beneficial?

First results in the project 4

Download and test a tick chart

I wish you a lot of success and I look forward to your feedback.

A nice weekend

best regards

Thanks Michael ... thats a AHA moment for me! ... now everything makes sense to me, even your Bid-Ask volume indi.
...will test & who knows, may be will have a cool idea kk
//
I was always thinking that Im the only guy whos too crazy to ask for candlestick data of much smaller Timeframes from broker! e.g: 5 or 10-second TF chart.
But, now i know that as a Noob ... Im too ignorant instead!

have a good weekend Michael!
best wishes for you all!

Can you post a template for the bionic chart candle settings that you have on the chart. thank you

Hello MarkStep,



as desired, I like to post the template of my last post. For this you have to upload the 7 auxiliary indicators into your MT4. The resolution I have chosen in HD and not in Ultra 4K, so everyone can work with it. Please take a look at the explanation of the individual indicators in this blog. For optimal presentation I recommend a tickchart. The reason for this can be found in my last post. In addition to self-developed indicators, indicators from outstanding programmers such as Swingman, Cja, Sangmane and FX Sniper were used. For the great work again my special thanks to these creative traders.

I wish you a nice weekend
best regards

Thank you for your time and patience, really appreciate your knowledge and insights in this business.

Will spend the weekend catching up with some blogs and try to contribute in the following weeks.

Happy weekend and God Bless!

Thanks to all Subscriber





Hello dear subscriber,

First of all, I would like to take this opportunity to thank all subscribers who support this blog while welcoming all new subscribers. There are different people in this blog with different intensions. We all have one goal in common: to get ahead in our knowledge and we can all be very proud of it. Winston Churchill has said two important things in his life: Personally, I am always ready to learn, although I do not want traditional instruction. I would like to take this principle to heart in this blog, because my view of the market is neither right nor wrong, just a hypothesis. And the hypotheses of today can be the knowledge of tomorrow. The second important sentence that Winston Churchill has coined is: "It is a great benefit in life to commit the mistakes you can learn from as early as possible. That's a very important key phrase for us traders. To avoid mistakes, you first have to identify errors.

This experience from other traders , will help us. An experienced trader needs to be willing to share his knowledge with others. From a successful trader you can learn how to do it, from a less successful trader you can learn what to avoid. For this reason, the experience of others is an important part of the path to success. If we avoid the mistakes that others have already made, we will save an incredible amount of time and money. This is basically an incredible treasure that you will appreciate later. Therefore, I would like to take this opportunity to thank all experienced traders who are willing to share their knowledge with others.

In general, we all try to determine at very short notice whether buyers or sellers are in control of the market. This creates ideas for a possible trade. The crazy thing about trading is that at first glance it seems very easy, the course goes up or down. Two options you can bet on, a 50% chance. But then one realizes that the probability in the forex market is 5.2% and in the futures market is 16.6%. Although the probability in roulette with 48.6% is much higher, but there is a decisive difference. The ball in roulette has no memory of what numbers it has already started. In trading, there are certain price zones where the big players could collect a certain amount of Bid or Ask to drive the price in a certain direction. These price zones can thus be active again and again. Because traders have a memory and this is the special opportunity. In trading you have more opportunities to exploit the odds in your favor than in gambling. But you need a lot of experience for that. Either you make this experience yourself, which usually takes many years. You can shorten the time significantly by relying on the experience of others.

To buy a book to learn I think thats alright, in addition to get over the Internet and FF many good information. I am less convinced by trainers who often offer unnecessary courses, strategies or trainings for expensive money. Successful traders who make real money in the stock market have no time to sell you anything. They are in the market every day and make an incredible amount of money. We all know how fast you can make money in this market. For a trader who acts profitably, however, a revenue from the sale of training would be very tiny. Most who offer training have failed with their strategy and have never been successful. A trader who get $ 500,000 a year would never bother to offer training for a few thousand dollars. In addition, no successful trader would reveal his system, because the more traders use this system, the less profitable it becomes. These sellers of training have become sluggish, they are no longer willing to take the high risk in trading and but nevertheless want to make a steady and secure income in the stock market.

But that does not correspond to the logic of the stock market. As a coach, you can not ask your students to take risks that you do not take on your own. Of course, these coaches show great trades where they have made a lot of money, but we all know how to do statistics great. Quite alarming, I find the recommendation of Forex brokers against commission. Either the recommender receives $ 300 or earns regularly from the losses of the recommended traders. From the commissions of the broker and his training fees, the coach buys a Lamborghini and signals the beginners how easy you can earn money in the stock market. That's perverted. I'm not jealous of these coaches because I've been trading my money for years and selling nothing. I find it only worrying, to enrich with false facts to people, who have their hope on the stock market.

It's easy to become a trader nowadays. You open a trader account and you're a trader. In the least professions this works. First you have to learn a profession, after 3 years you are a journeyman. After a few more years you have the opportunity to become a master. Only then you are allowed to open your own business. As a doctor, lawyer or notary, you must even learn 10 years before you can become self-employed. Traden is just as demanding as a master craftsman, doctor or lawyer. It takes a lot of time, money and passion.

As a trader we need a lot of time on the screen. Every day around the clock, candle for candle. Over time, you will grasp certain relationships that will help you to progress. Create a setup that suits your personality and optimize it. Work with a Trader day book, where you deposit all important information. This is crucial because you need statistics to find out which setup will help you. What values do you want to act and why? Which trading times are optimal for these values? Which Moneymanagement is required for your setup? Are you more of a Short or Long Trader? Are you a Scalper, a Daytrader or a Swing Trader? Do you trade better in the trend or in the counter trend? Which data in the forex or future market is crucial for you? Will you get along better with the DOM, the Footprintcharts or the Volume Profile in the Future Market? What information will help you to get in and out? Which indicators are required? What information do you need from the fundamental and technical analysis as well as from the chart technique? In what time units do you feel comfortable? Do you prefer to trade in the forex or the futures market? Which broker and which trading software are optimal? These are just a few questions you should answer.

Every trader has to assemble his own setup over the years, no one else can help you with that. Copying a setup from a successful trader and implementing it 1: 1 will not work in the long run. You always have to know for yourself why you do what, when and where best. You can use the experience of successful traders to save time, but you have to find your own optimal setup. This blog is a kind of buffet, you get information about different setups, probabilities and markets. There is no specific system that you need to follow to be successful. I know that is exhausting and time-consuming. Unfortunately, the market is too complicated to beat with a simple system. Do not let anyone tell you that. The biggest big players in the market would not put many millions of dollars into countless analysts, traders and tech if the market was easy. As a small trader, we do not have such a budget, so we have to follow in the footsteps of the world's largest financial professionals. And that's exactly what our blog is about. The disadvantage: It is more complex than a supposedly simple system. The advantage: If you manage to follow the big players, you will earn money in the long term. Remember: Goldman Sachs wins 225 days from 250 trading days. That's a quota of 90%. This is a convincing argument to go in search of the big players.

I sincerely wish you to achieve your goal in trading, I would be happy if this blog can help. Thanks again for your great support.

I wish you a nice Sunday

Best regards

Hi Bionics,

In view of the talk of Smart Money and dumb money, I have decided to shift to trading of indices since I feel this issue may not be there.
It will be purely the play of the trader's skills in

 

1. reading market
2. using right indicators for short-term and long-term detection
3. having discipline to enter market not impulsively
4. using no stop loss and discipline to get out when things are not working out
5. identifying consolidation and avoid entering trades during consolidation phase
6. taking reasonable profit of ADR 38% to 68%.

You have developed so many indicators and I would like to use the ones which you think can help me in

 

1. identifying consolidation - This is the critical part of the setup. Wait or Go should be clearly visible to the trader.
2. determining short-term trend for M5 to M30
3. determining long-term trend starting with M60
4. ADR kind of an indicator to plot exit
5. providing additional aids like sub-window to assess the strength of the trend
6. The heart of this trading setup will be the availability of indicators that can give
7. Four signals should be there.
8. A signal of consolidation finishing, the rest - the long-term trend, short-term trend and the bulls or bear candles should be on one page. Without leaving any doubt as to enter or not. Important is to make life easy for entry without hesitation

I am sure you will apply your experience to setup a good trading plot.
thank you.

Thank you.

[quote=simnz;12544506]Hi Bionics, In view of the talk of Smart Money and dumb money, I have decided to shift to trading of indices since I feel this issue may not be there.

Hello Simnz,

I like to help you, as far as I can. I would first like to make a few comments. Basically, I can understand your great idea, but there is a lot to consider. An index, also known as the stock market index, tracks the performance of a group of companies and is used to assess the performance of a sector, region or economy of a country. The Dow e.g. is an average value, i. the prices of the companies included in them are added together and divided by the number of companies. In fact, this is a reliable indicator for assessing the strength of the US economy. But it is nothing more than the average value of different stock companies. And there is also smart money and dump money which have a significant impact on the price performance. I find it more of an advantage to be able to identify where Smart Money / Dump Money positions itself. From this immediate trading decisions can be derived.

In principle, one can roughly compare an index with an investment fund. This is not about individual values, but a summary of different individual values. But in the Dow we are in the equities sector and these values are harder for me personally to trade than currencies. I have already posted an example of the world championships of stocks, forex and futures.

Forex versus future

While the forex market is 3 times as hard to trade as the futures market, equities are 4 times as hard to trade as futures. This means that the probability of winning is 16.6% in the futures market, 5.2% in the forex and 4% in equities. This should always be considered. There are some traders who prefer to trade stocks because volatility is much higher and you can see absorption better with stock market data than in other markets. That's why I always recommend a market analysis to find out which markets suit your own psyche best. That's crucial.

The indicators that I have developed are based solely on the price development in the forex market. Although these prices are correct, depending on the broker, the price does not tell us why it is changing. For that I need Ask and Bid. So if you trade in Forex solely on price information, you need a damned good strategy. I have traded for many years on the principle of demand and supply and have developed indicators that have helped me to identify the individual candle strength.

Your strategy, which they now develop for themselves, is an absolutely right step. Because it will create an individual setup for you personally. However, this also means that no one else will be able to create this setup for you. In the last 1.5 years, I have tried in this blog to describe my approach. But that's almost impossible. This is comparable to two people who want to talk but speak different languages. As I mentioned in my last post, this blog is a buffet with different foods (setups and indicators). Unfortunately, I am not able to put together an individual dish (setup) because I do not know your individual situation and psyche. In the figurative sense: Imagine I recommend a dish where nuts are included and you have a nut allergy.

In more than 700 contributions with 1,300 pictures you will find concrete descriptions for all indicators and strategies. If this is important to you, I recommend that you work through these posts and gradually build your setup. Since I act completely differently than you, my recommendation would probably make you more loss. The fact that you optimize your setup will give you new opportunities to become even more successful. This is the right way. But you have to be prepared to invest a lot of time. It took me over 6 years to create my setup and it is currently being optimized again. The market is changing so fast that our optimization of today, tomorrow is outdated again. That may not be true for everyone, but those who do not adapt will perish in this tough market.

I keep my fingers crossed for you and hope you find your personal setup that will make you successful in the long term.

Lovely wishes
Michael

Thank you for your concerns. I trade for intellectual satisfaction and enjoy the process of doing it and am not affected by the outcome. I will share with you my experience.

Coming to currencies, do you think it is better to use tick charts for displaying currencies strength measured by bid ratio rather than using it fixed time frames?
Is it possible to have a small dashboard for each of 8 majors covering 7 pairs? I will trade a pair GBPAUD when I find atleast two other pairs GBPUSD and one more cross pair are moving in same direction a sort of confirmation for trading strategy.

[quote=simnz;12555425]{quote}{quote} Thank you for your concerns.

Hallo simnz,

I am glad to hear that. The topic of currency strength is an important and central topic, and I will publish a detailed article with concrete examples, a video and indicators by tomorrow.

best regards

Hello MarkStep,

Thank you for the friendly compliment for this blog. It is indeed a great challenge to make this complicated market as simple as possible. A bigger challenge is to set up the screen display in such a way that it creates an individual setup. With this setup it should be possible for a trader to realize entrances and exits that are profit-optimizing. With the following article about the currency strength I will describe an important puzzle piece in the setup of the forex market.

I wish you a nice weekend

best regards