There has been some discussion on where to place R/S, Could this be an answer?
This is from a thread started by
Rusty_forexman - MarketMakers
There's a 'me' in team!
Jun 12, 2006 12:24am
In terms of indicators and tools - Each trader had his own style, I know for a fact that most traders think that technical Oscilators like MACD's, stochastics and RSI was a bunch of rubbish, and didnt use them much.
These indicators are useful to you and me, cause it helps us gather information about the market itself - but, You gotta remember the bank knows the depth of the market, and because they have the volume - they can run up and down the depth as much as they want. So technicals didnt really make a difference.
However, the number one indicator used was Moving averages, basic support and resistence, and run offs against the ma's.
Order flows came from both Interbanks and institutions. They made their decisions on seeing who is buying what (often the client made a big difference, cause if a big buyer/seller is a major player, it leads to other investment houses following their lead and moving the momentum in the market.) and when they were buying them, at which prices, and where they were building a base to collect orders in the market.
So basically the traders worked off:
- information from the market and their clients,
- momentum, and
- technicals.
Run offs from the ma's is an extremely basic strategy. You have probably noticed it in the market before
Usually if the market is often focused on heading in one direction, the market tends to use ma's as support and resistence points.
Mostly the 10,20 and 50 ema work the best in this circumstance on the 4 hour and daily charts. You will often see the the price move to these levels and bounce off, or if it moves through the moving average - it will progress straight through to the next one, where the level usually holds...
When the ma's cross with each other, you start all over again, except you move in the opposite direction.
I hope that makes sense?
This is from a thread started by
Rusty_forexman - MarketMakers
There's a 'me' in team!
Jun 12, 2006 12:24am
In terms of indicators and tools - Each trader had his own style, I know for a fact that most traders think that technical Oscilators like MACD's, stochastics and RSI was a bunch of rubbish, and didnt use them much.
These indicators are useful to you and me, cause it helps us gather information about the market itself - but, You gotta remember the bank knows the depth of the market, and because they have the volume - they can run up and down the depth as much as they want. So technicals didnt really make a difference.
However, the number one indicator used was Moving averages, basic support and resistence, and run offs against the ma's.
Order flows came from both Interbanks and institutions. They made their decisions on seeing who is buying what (often the client made a big difference, cause if a big buyer/seller is a major player, it leads to other investment houses following their lead and moving the momentum in the market.) and when they were buying them, at which prices, and where they were building a base to collect orders in the market.
So basically the traders worked off:
- information from the market and their clients,
- momentum, and
- technicals.
Run offs from the ma's is an extremely basic strategy. You have probably noticed it in the market before
Usually if the market is often focused on heading in one direction, the market tends to use ma's as support and resistence points.
Mostly the 10,20 and 50 ema work the best in this circumstance on the 4 hour and daily charts. You will often see the the price move to these levels and bounce off, or if it moves through the moving average - it will progress straight through to the next one, where the level usually holds...
When the ma's cross with each other, you start all over again, except you move in the opposite direction.
I hope that makes sense?
hehe
