I contribute articles to an informative forex trading blog which will help you better understand setups I use. Check out http://turbotrader.blogspot.com/
As of right now, todays spread bar, is higher then the previous day, and volume growing. Worse case scenario, we get a pull back during US Session, after hours and during Sydney Session, EUR retraces up and I'll close out profitable trades, in the morning.I like to measure the amount of pips on the wick of each red candle and get an estimate for buying signal,from the daily chart.
the indicator you posted is not the one you're using, I'd like to follow your thoughts looking at the same picture, can you please share the right one?
Here's a great video on market mechanics from Tom Williams, where I get my strategy this one shows how professional money does the opposite of weak money aka the herd>http://www.youtube.com/watch?v=rKZ38ZeeEW4&feature=related
Here's a great video on market mechanics from Tom Williams, where I get my strategy this one shows how professional money does the opposite of weak money aka the herd>http://www.youtube.com/watch?v=rKZ38ZeeEW4&feature=related
Ignored
The strategy is great I picked it up with out buying the expensive software,fact is you don't need it. They have free information online I also have e books that teach it.
EUR closed up on the daily chart, I'm waiting to final close to anaylze the volume for today. Last Friday if you followed my posts, I called today's close was up.The beauty of the system is you can predict market direction all from just using volume and spread. No advanced MMA or indicators, you don't need to be a forex analyst. Just read what you see, now check the news b/c theirs a pattern which occurs in the EUR how weak holders sell heavy depending on the new from US. The professional money uses news and news media, to manipulate the markets and cause fear. So Thursday's weekly claims will be a prime example, same scenario from last week and notice I was buying heavy on that bearish trend and as news faded professional again stepped in and I was with them profiting all the way.
Here's a great insert from tom williams master the markets
How to Recognize Market Tops
Assume we have already seen substantial rises in the market and that the prices are now into new high ground (i.e. there is nothing higher on your chart to the left). Then we observe high volume appearing, with a narrow spread, on an up-day – this is a strong sign of weakness. If the high volume (high activity) had represented mostly buying, surely the spread would have to be wide and up. We now know that the market-makers do not want to give you a good deal. Buyers coming into the market need somebody to buy from. If market-makers or specialists decide to meet this demand and sell throughout the day to those buyers, this will effectively ‘cap’ the top end of the market, resulting in a narrow spread up-bar for the day. Professional money will not do this if higher prices are expected –
however, they will if they anticipate lower prices.
So, the essential ingredients for this bearish indication are:
• An up-day, on high volume, with a narrow spread, into new high ground. Each element is
essential for an accurate signal.
Let us break things down:
1. The volume tells you that there is a lot of trading going on.
2. The narrow spread demonstrates that the prices have been ‘compressed’, which should be a warning to
you, when accompanied by the high volume.
3. The new high ground shows that the volume of trading has not been influenced by other traders that are locked into the market. What we are seeing is the market-makers telling us their bearish views of the market by the narrow spread, on high volume, on an up-day. Professional money will be selling to such an extent that higher prices will now be impossible.
