Is this analogy correct? | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

A Nice Analogy 2 replies

What is your analogy refer to forex speculation? 10 replies

historical time zones correct? 2 replies

two version of FF tunnel Chart, one say down, one say up, which one is correct? 3 replies

Is this a correct Elliot wave evaluation? 10 replies

Is this analogy correct?

  • #1
  • First Post: Jul 13, 2009 2:43am Jul 13, 2009 2:43am
In trendy market price is like a disobedient kid, jumping up and down tending to fail laws of technical analysis. Otherwise is true for Range market.
  • #2
  • Jul 13, 2009 3:41am Jul 13, 2009 3:41am
How about this one:

A ranging market is like a kid you're beating senseless, but he can't escape the house so he runs from one end of the house to the other while you chase him with the bat. Every time you think you've got him cornered and wind up with the bat to take your best shot, he slips away and the chase begins again.

A trending market is like the same kid you're beating senseless, but he managed to get the door open and is now already half a mile down the street and there is no way you can catch him
  • #3
  • Jul 13, 2009 3:43am Jul 13, 2009 3:43am
Quoting Dopey
How about this one:

A ranging market is like a kid you're beating senseless, but he can't escape the house so he runs from one end of the house to the other while you chase him with the bat. Every time you think you've got him cornered and wind up with the bat to take your best shot, he slips away and the chase begins again.

A trending market is like the same kid you're beating senseless, but he managed to get the door open and is now already half a mile down the street and there is no way you can catch him
You don't post often, but every one's a winner .
  • #4
  • Jul 13, 2009 3:48am Jul 13, 2009 3:48am
Quoting Dopey
How about this one:

A trending market is like the same kid you're beating senseless, but he managed to get the door open and is now already half a mile down the street and there is no way you can catch him

... and if you decide to take the big run after him, when you get to him and you think you catched him, he will swiftly slip from your arms and run away in the opposite direction -unless you wait in the bushes for him to tire, stop a little and catch his breath; then you go and catch him.
freedom
  • #5
  • Jul 13, 2009 4:10am Jul 13, 2009 4:10am
Perception of Financial Market trend and other conditions are the product of the trader's believes. Most of all markets are synthetic environments or risk distribution systems, therefores efforts to associate financial market with a natural phenomenon or behavior are self-fulfiling prophecies
No Fear, No Regrets A sense of purpose makes life meaningful
  • #6
  • Jul 13, 2009 4:14am Jul 13, 2009 4:14am
Quoting Bizken
Perception of Financial Market trend and other conditions are the product of the trader's believes. Most of all markets are synthetic environments or risk distribution systems, therefores efforts to associate financial market with a natural phenomenon or behavior are self-fulfiling prophecies
Yes, and thanks god for self fulfilling prophecies.
freedom
  • #7
  • Jul 13, 2009 5:09am Jul 13, 2009 5:09am
Instead of running around like crazy trying to catch the kid, why not sit down at one place, bait the kid with a candy and wait for him to come to you?

You are almost old enough to be walking with a stick. The kid has infinite amounts of energy. Instead of tiring yourself to death, why not wait for him to come to you?
  • #8
  • Jul 13, 2009 5:21am Jul 13, 2009 5:21am
What's all this about trapping boys eh? This line of thought gives a whole new meaning to the 'Jacko' method of trading, and no doubt social services will be taking a keen interest.

It is arguable that a ranging market is more 'obedient', insomuch that it is more likely to respect support and resistance. Those who rely upon indicators to capitalise upon trends will come unstuck if they are trend-trading a ranging market, especially if the market is oscillating at a frequency which produces a continuation signal right at the top and bottom of the wave - ie. a headfake or whatever they call it. The strategies required to profit from ranging and trending conditions are almost opposite, which makes it so important to hone the ability to identify and anticipate market conditions.
  • #9
  • Edited 8:16am Jul 13, 2009 7:42am | Edited 8:16am
In market most active times ADx showing range is fake? In trendy times if ADX shows it is range market for a pair, is this a false signal?
  • #10
  • Jul 13, 2009 7:54am Jul 13, 2009 7:54am
Quoting PeterFM
You don't post often, but every one's a winner .
Thanks, Peter. I do try to amuse myself.
  • #11
  • Jul 13, 2009 1:25pm Jul 13, 2009 1:25pm
Quoting Dopey
Thanks, Peter. I do try to amuse myself.
totally hilarious dopey. loved it.
  • #12
  • Last Post: Jul 15, 2009 6:30am Jul 15, 2009 6:30am
Quoting Dopey
How about this one:

A ranging market is like a kid you're beating senseless, but he can't escape the house so he runs from one end of the house to the other while you chase him with the bat. Every time you think you've got him cornered and wind up with the bat to take your best shot, he slips away and the chase begins again.

A trending market is like the same kid you're beating senseless, but he managed to get the door open and is now already half a mile down the street and there is no way you can catch him
Dammit Dopey, you been stalking me again?
0 traders viewing now