Cable Update (GBPUSD)

THANK YOU MANU! I very rarley trade on a friday to begin with, I dind`t even realize it was the 13th. This universe works in mysterious ways and friday the 13th is no exception. That being said, I think I`ll read a book instead.

Best you become a Librarian rather than a currency trader then.

Whats up with all the shit talking today? Silly scalpers, you`ll just never understand the true meaning of this market.

Oh yeah I realize being this late I am talking to my own country men, the biggest shit talkers of them all. This is supposed to be GBP/USD thread, so here is my advice. As long as that IDIOT texan is in office, sell the dollar.

LOL, you sounds so childish. Why don't you asked question during the webinar?

I have give you link, see post http://forexfactory.com/showpost.php...ostcount=18479

So, for me, it is basically to read the very short term market movements. Good for scalper or intra day traders. nothing more than that.

Buy buy buy

Wise old man says that do not follow the crowd.

Wise man indeed

I smell retracement, even though I am still long for the long term

Watching conflict between UK and Rusia....it will give impact to UK economy.

what conflict al about?

Scare tactic?

Big Wave Rider,

I myself am not a lover of Mr. Bush's policy, but whoever would call this man a idiot he or she themselves have big problems. If you are an American citizen you yourself should know why the dollars is weakening. As you may know that we have a lame group of Women and Men in Congress who only vote for one reason and that would be for political self fulling themselves and their party. The dollar will returns when it returns so for now enjoy the run down. So, for Mr. Bush do your job and do it the best you can. So, for now go Long on the dips and wait it out. Maybe we will see with the Pound reach $2.400 area once again. Then, maybe after this just set back and enjoy the ride back to 2.000. Have a great day!!!

Zamans98,

...so let me address the rest of the readers and try to clear any confusion that you may have created and post some of the comments made by other traders who have looked at using Level II in Forex...A very different animal than using it with equities:


bluebuddha http://www.forexfactory.com/images/s...er_offline.gif vbmenu_register("postmenu_1458950", true);
Nobody™
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As far as I know, the only purpose for Level II quotes are for those who scalp... and usually for only a few ticks/pips. They're most popular amongst e-mini futures traders, and those who trade by it often use the term "reading the tape"*. I never got into L2 quotes when I dabbled in futures a couple of years ago, but I think the theory is that if there are more outstanding open orders on one side than the other (ie: the orders above and below the current price), the market is biased in that direction.

You could also look at the bid/ask sizes of the current price, but these usually fluctuate so quickly (at least with futures), that you need nerves of steel to trade this way. Not only that, but some traders will flash an absurd size of contracts/lots (ie: 1000 contracts on the E-mini S&P, which can range in margin cost of $500k to $1.2 million, depending on your broker), just to see if it is enough to drive market in a certain direction. Usually, these huge orders click on and off in less than three seconds.




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06-05-07, 3:18pm
Bytebodger http://www.forexfactory.com/images/s...er_offline.gif vbmenu_register("postmenu_1458977", true);

Thanks for the info. I'm comfortable in my knowledge of what Level II quotes are. I guess I'm asking whether there is anyone here who actually manages to incorporate them into their trading strategy, e.g. "When X happens on my charts I look at the Level II quotes and if I see condition Y I do/don't place the trade." I really doubt that anyone does this, but I was just curious.

As has already been pointed out in this thread, the quotes usually move very fast and it can be very difficult to make any meaningful trading decisions off them. Furthermore, even though I am seeing SOME Level II quotes, I know that I must not be seeing ALL the forex Level II quotes because forex does not have a centralized exchanged. That means that I can only see the Level II quotes that are present on the ECN into which I am currently tied.
11-10-06, 8:41pm

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WTB http://www.forexfactory.com/images/s...er_offline.gif
Level II
Hello guys,

I have just moved my accounts to a broker offering Level II market-depth features. However, the damn info moves so fast that I just cant process any valuable information off it.

Is anyone more familiar with Level II data and could enlighten me a little bit please?

Thank you.
11-13-06, 7:03am
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dominicanosrus http://www.forexfactory.com/images/s...er_offline.gif


WTB, even NASDAQ level II data moves "fast," but due to the fact that the equities market is centralized, it seems to move in a way that is easier to digest (assuming that no market maker "tricks" are moving the price in a direction that seems to be contradictory to the liquidity shown on level II).

I have seen the level II data on an EFX Group demo, but as you say, it moves too fast. Until the forex market is centralized, I think that the use of this data to make scalping-type trade decisions will be limited. I don't use level II data for this. To me it is just a gauge to determine what's the average liquidity available at the best bid and ask - as well as the depth of market. This tells me how many lots I should expect to get executed easily in one shot when the time comes.

I hope this helps..

I think we should sell it in short term !

WORD.

I think its irrelevant in Forex. Different brokers have different liquidity providers and the volume you get does not replicate the total underlying market force currently at work, a string of a few million dollars contract can only work out to be so much, my friend a bank trader trades by the yards and he can barely move the market.

Say your broker have several banks as their liquidity providers, each bank only represent 2% of the actual amount of volume traded in FX. Best way to use Level II imo for now is to search for the best fills for the volume that you trade.

LOL, i'm not confusing other readers. Those use L2 knows about it. I'm using L2 quotes to monitor the super short term market direction with my broker, as I use it purely for scalping. It does not shows that its true for the whole FX market.
It does not matter if you're in FOREX, Metal or Equities market.
Please read my previous post before jumping.

I'm done here. Anyone want to know more, signup a demo a/c with the broker and test it yourself.

yup, agreed. We need to know that the LPB (Liquidity Provider Bank) represent xx% of the market. I'm using my broker L2 quotes for scalping...

So as the market sits quietly, possibly waiting for a storm tomorrow...

Does anyone have thoughts about the retail sales announcement????