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Myth Busters the Forex Edition

  • #241
  • Nov 29, 2009 6:51am Nov 29, 2009 6:51am
Quoting 7bit
Are you referring to the conservation of momentum? http://en.wikipedia.org/wiki/Momentum

There is an indicator to measure this price "momentum"

Well it's called Momentum, sadly it doesn't seem to actually do this, atleast not in a useable way!!
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #242
  • Nov 29, 2009 7:15am Nov 29, 2009 7:15am
Quoting Turveyd
Well it's called Momentum, sadly it doesn't seem to actually do this, atleast not in a useable way!!
This is simply because price has no mass, thus no momentum. The principle from Physics you are referring to has no meaning in forex, otherwise the previous candle direction alone would already provide an edge, which it doesn't.
  • #243
  • Nov 29, 2009 7:19am Nov 29, 2009 7:19am
double post. deleted.
  • #244
  • Nov 29, 2009 8:31am Nov 29, 2009 8:31am
Quoting 7bit
This is simply because price has no mass, thus no momentum. The principle from Physics you are referring to has no meaning in forex, otherwise the previous candle direction alone would already provide an edge, which it doesn't.
It kinda does have virtual mass, provided by the imbalance between buyers and sellers and the simple facts it's moving, the momentum barely translates into a H4 chart candle wise, which is why reading candles on a H4 is so ridiculous, try a tick chart really visible there and visible at times with M1.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
  • #245
  • Nov 29, 2009 7:30pm Nov 29, 2009 7:30pm
[quote=7bit;3268176]This is simply because price has no mass, thus no momentum. /quote]

It may not have mass, but it sure has momentum!
  • #246
  • Nov 29, 2009 7:49pm Nov 29, 2009 7:49pm
The market is not a shopping trolley.
The breaking of a wave cannot explain the whole sea.
  • #247
  • Nov 29, 2009 9:22pm Nov 29, 2009 9:22pm
Quoting eclayf
Great post Josh,,, really, really like the tenor of this one. Hope you can maintain control of this thread a bit better than some have their threads.

There are so many myths in trading.

The "myth" of time frame is one of the worst. There is NO time frame in trading, only the way we look at and segment it, which becomes a self fulfilling prophecy as well.

The "market" only knows when it opens and it closes, other than that, there is no "time frame" only the individual trades and the way we break them into segments we can understand...
Probably the best post I've ever read (post #15). Seriously.

Well done, mate.
  • #248
  • Nov 29, 2009 10:46pm Nov 29, 2009 10:46pm
Quoting ToeCutter
Probably the best post I've ever read (post #15). Seriously.

Well done, mate.
Glad you enjoyed it ToeCutter
  • #249
  • Nov 29, 2009 10:59pm Nov 29, 2009 10:59pm
Quoting Turveyd
It kinda does have virtual mass, provided by the imbalance between buyers and sellers and the simple facts it's moving, the momentum barely translates into a H4 chart candle wise, which is why reading candles on a H4 is so ridiculous, try a tick chart really visible there and visible at times with M1.
man hope you are joking..come on now.. are you serious?
"Simplicity is the ultimate sophistication" leonardo da vinci
  • #250
  • Nov 30, 2009 10:46pm Nov 30, 2009 10:46pm
Quoting vulture
man hope you are joking..come on now.. are you serious?
Mass in not the only "force" that can move things. Momentum by itself is often enough. Stand in front of a 50 mile per hour wind and see what it does.

It has very, very little mass, but will still knock you on your rosy red. Price momentum is much the same. Get on the wrong side of it, and it will kill your account just the same as if there were "real" mass involved.

Clay
  • #251
  • Edited 1:25am Dec 1, 2009 1:02am | Edited 1:25am
Quoting Turveyd
It kinda does have virtual mass, provided by the imbalance between buyers and sellers and the simple facts it's moving, the momentum barely translates into a H4 chart candle wise, which is why reading candles on a H4 is so ridiculous, try a tick chart really visible there and visible at times with M1.
There's visible momentum on all time frames Turveyd
  • #252
  • Last Post: Dec 1, 2009 1:02am Dec 1, 2009 1:02am
Quoting eclayf
Mass in not the only "force" that can move things. Momentum by itself is often enough. Stand in front of a 50 mile per hour wind and see what it does.

It has very, very little mass, but will still knock you on your rosy red. Price momentum is much the same. Get on the wrong side of it, and it will kill your account just the same as if there were "real" mass involved.

Clay
well said Clay
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