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  • #21
  • Feb 16, 2008 9:54pm Feb 16, 2008 9:54pm
Thank you David, and same back at you, nice post
Trax Tibidax Tibidox...
  • #22
  • Feb 16, 2008 10:26pm Feb 16, 2008 10:26pm
Quoting hanover
(1) much of the liquidity is provided by non-speculators
You've got it backwards..

It has been estimated by Greenwich Associates of London, that over 95 percent of each day's volume is due to speculation by large banks, multinational corporations, financial cartels, global money managers, registered dealers, international money-brokers, futures and options traders, right the way down to private individuals. The remaining five percent are genuine transactions for physical exchange and delivery of currency for non-speculative purposes.
  • #23
  • Edited 1:09am Feb 17, 2008 12:38am | Edited 1:09am
Indicators shows what happened in the past. Price Action shows the future.
One way to look at it is like driving in a car. Indicators is looking at the rear view mirror and Price Action is looking through the front windshield. Hard to drive very far looking at the rear view mirror.

Trend lines, Fibs, and S/R levels show possible future locations. So your driving your car, looking through the front windshield (Price Action) and you see something ahead in the road. Is that a stop sign ahead, a crossroad or a traffic light (trendlines, Fibs, and/or S/R levels).


Jim
Indicators show the past. Price Action "Indicates" the future.
  • #24
  • Feb 17, 2008 8:57am Feb 17, 2008 8:57am
Quoting jarroo
Indicators shows what happened in the past. Price Action shows the future.
One way to look at it is like driving in a car. Indicators is looking at the rear view mirror and Price Action is looking through the front windshield. Hard to drive very far looking at the rear view mirror.

Trend lines, Fibs, and S/R levels show possible future locations. So your driving your car, looking through the front windshield (Price Action) and you see something ahead in the road. Is that a stop sign ahead, a crossroad or a traffic light (trendlines, Fibs, and/or S/R levels).


Jim
Jim ,
Another trading style is candlestick pattren .Im observing that candlestick pattren and trading through it is also becoming very famous...This is not a thread to discuss it but I met with lot of senior and successfull trader's in past which are trading through candlestick pattren successfully...Even without using any indicator's or any other Technical Analysis...
Anyway's Like i always said and again saying that one must have to chose a system which suit's him even whtever kind of it...
  • #25
  • Feb 17, 2008 3:30pm Feb 17, 2008 3:30pm
Quoting Umairs2004
Jim ,
Another trading style is candlestick pattren .Im observing that candlestick pattren and trading through it is also becoming very famous...This is not a thread to discuss it but I met with lot of senior and successfull trader's in past which are trading through candlestick pattren successfully...Even without using any indicator's or any other Technical Analysis...
Anyway's Like i always said and again saying that one must have to chose a system which suit's him even whtever kind of it...
Candle patterns or Bar charts is all the same when reading Price Action. I'm sure those senior and successful traders you met in the past once start with indicators and are now using Price Action. Its the fundamental starting point when one chooses a trading system or style.

The James16 Chart Thread is the best place to start.
http://www.forexfactory.com/showthread.php?t=2331

Jim
Indicators show the past. Price Action "Indicates" the future.
  • #26
  • Feb 17, 2008 4:16pm Feb 17, 2008 4:16pm
Indicators work because other traders use them. Some are more used than others... depending on the pair. I use moving averages on practically all of my charts, not looking for crosses but rather looking for which ones the market is following... and more often than not 1 or 2 of them end up getting used as resistance or support. Price will rise to meet the MA, and a group of ppl will sell off... this can trigger an even bigger sell-off as others realize the change and suddenly price drops. Self-fulfilling prophecy.

With that said there are some pairs that reliably use indicators like MACD, Stoch and RSI. While "overbought" and "oversold" concepts are largely nonsense, if enough people believe it... they turn out to be true.

Most of this business is voodoo is seems. It works because ppl cooperate thru standards. Take fibs for instance, there's absolutely no reason why in a random world a fib sequence would predict anything... but because so many speculators plot them, they turn out to have enormous importance. Next time price hits a fib level take a long hard look at what the price is doing... is it bouncing off the level or breaking thru it? Seems that can tell you a lot.
  • #27
  • Last Post: Feb 17, 2008 4:18pm Feb 17, 2008 4:18pm
Quoting Rabid
Indicators work because other traders use them. Some are more used than others... depending on the pair. I use moving averages on practically all of my charts, not looking for crosses but rather looking for which ones the market is following... and more often than not 1 or 2 of them end up getting used as resistance or support. Price will rise to meet the MA, and a group of ppl will sell off... this can trigger an even bigger sell-off as others realize the change and suddenly price drops. Self-fulfilling prophecy.

With that said there are some pairs that reliably use indicators like MACD, Stoch and RSI. While "overbought" and "oversold" concepts are largely nonsense, if enough people believe it... they turn out to be true.

Most of this business is voodoo is seems. It works because ppl cooperate thru standards. Take fibs for instance, there's absolutely no reason why in a random world a fib sequence would predict anything... but because so many speculators plot them, they turn out to have enormous importance. Next time price hits a fib level take a long hard look at what the price is doing... is it bouncing off the level or breaking thru it? Seems that can tell you a lot.
Well said.
Indicators show the past. Price Action "Indicates" the future.
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