Time Cell Trading

Trading Spot FX is Decentralized

Unlike in trading stocks or futures, you don't need to go through a centralized exchange like the New York Stock Exchange with just one price. In the forex market, there is no single price that for a given currency at any time, which means quotes from different currency dealers vary.

http://www.babypips.com/school/image...zed-market.png

"So many choices! Awesome!"
This might be overwhelming at first, but this is what makes the forex market so freakin' awesome! The market is so huge and the competition between dealers is so fierce that you get the best deal almost every single time. And tell me, who does not want that?
Also, one cool thing about forex trading is that you can do it anywhere.

http://www.babypips.com/school/forex...structure.html

The FX Ladder

Even though the forex market is decentralized, it isn't pure and utter chaos! The participants in the FX market can be organized into a ladder. To better understand what we mean, here is a neat illustration:

http://www.babypips.com/school/image.../fx-ladder.png

At the very top of the forex market ladder is the interbank market. Composed of the largest banks of the world and some smaller banks, the participants of this market trade directly with each other or electronically through the Electronic Brokering Services (EBS) or the Reuters Dealing 3000-Spot Matching.

The competition between the two companies - the EBS and the Reuters Dealing 3000-Spot Matching - is similar to Coke and Pepsi. They are in constant battle for clients and continually try to one-up each other for market share. While both companies offer most currency pairs, some currency pairs are more liquid on one than the other.

For the EBS plaform, EUR/USD, USD/JPY, EUR/JPY, EUR/CHF, and USD/CHF are more liquid. Meanwhile, for the Reuters platform, GBP/USD, EUR/GBP, USD/CAD, AUD/USD, and NZD/USD are more liquid.

All the banks that are part of the interbank market can see the rates that each other is offering, but this doesn't necessarily mean that anyone can make deals at those prices.

Like in real life, the rates will largely dependent on the established CREDIT relationship between the trading parties. Just to name a few, there's the "B.F.F. rate," the "customer rate," and the "ex-wife-you-took-everything rate." It's like asking for a loan at your local bank. The better your credit standing and reputation with them, the better the interest rates and the larger loan you can avail.
Next on the ladder are the hedge funds, corporations, retail market makers and retail ECNs. Since these institutions do not have tight credit relationships with the participants of the interbank market, they have to do their transactions via commercial banks. This means that their rates are slightly higher and more expensive than those who are part of the interbank market.
At the very bottom of the ladder are the retail traders. It used to be very hard for us little people to engage in the forex market but, thanks to the advent of the internet, electronic trading, and retail brokers, the difficult barriers to entry in forex trading have all been taken down.

This gave us the chance to play with those high up the ladder and poke them with a very long and cheap stick.

http://www.babypips.com/school/forex...structure.html

The Speculators

"In it to win it!"
This is probably the mantra of the speculators. Comprising close to 90% of all trading volume, speculators come in all shapes and sizes. Some have fat pockets, some roll thin, but all of them engage in the forex simply to make bucket loads of cash.
Don't worry... Once you graduate from the School of Pipsology, you can be part of this cool crowd!


http://www.babypips.com/school/market-players.html

Market Hours

http://www.babypips.com/school/image...hool/clock.png Before looking at the best times to trade, we must look at what a 24 hour day in the forex world looks like.
The forex market can be broken up into four major trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Below are tables of the open and close times for each session:


http://www.babypips.com/school/trading-sessions.html

You can see that in between each session, there is a period of time where two sessions are open at the same time. From 3:00-4:00 am EDT, both the Tokyo and London markets are open, and from 8:00-12:00 am EDT, both the London and New York markets are open.



Naturally, these are the busiest times during the market because there is more volume when two markets are open at the same time. This makes sense because during those times, all the market participants are wheelin' and dealin', which means that more money is transferring hands.



Now, you're probably looking at the Sydney open and thinking why it shifts two hours. You'd think that Sydney's open would only move one hour when the U.S. adjusts for standard time, but remember that when the U.S. shifts one hour back, Sydney actually moves forward by one hour (seasons are opposite in Australia). You should always remember this if you ever plan to trade during that time period.


http://www.babypips.com/school/trading-sessions.html

For more information about forex trading hours, you can check out Let's take a look at the average pip movement of the major currency pairs during each trading session.

From the table, you will see that the European session normally provides the most movement.

http://www.babypips.com/school/trading-sessions.html

...further more details :

 

1. Trading Sessions
2. Tokyo Session
3. London Session
4. New York Session
5. Session Overlaps
6. Best Days of the Week to Trade

Best Times to Trade:

 

1. When two sessions are overlapping of course! These are also the times where major news events come out to potentially spark some volatility and directional movements. Make sure you bookmark the Market Hours cheat sheet to take note of the Opening and Closing times.
2. The European session tends to be the busiest out of the three.
3. The middle of the week typically shows the most movement, as the pip range widens for most of the major currency pairs.

Worst Times to Trade:

 

1. Sundays - everyone is sleeping or enjoying their weekend!
2. Fridays - liquidity dies down during the latter part of the U.S. session.
3. Holidays - everybody is taking a break.
4. Major news events - you don't want to get whipsawed!
5. During American Idol, the NBA Finals, or the Superbowl.

http://www.babypips.com/school/best-...-to-trade.html

GBPUSD, Monthly, 2010 December 11
GBPUSD, Weekly 2010 December 11

Monthly and Weekly seems to move the market price within the triangle.

So it's better to wait here for a breakout, ... and if so,... then it could be a strong movement either up or down.

GBPUSD, Daily, 2010 December 11
GBPUSD, H4, 2010 December 11

The Daily is omne of the important now, lines are getting extremly narrow, so a breakout could expected with a higher probability, isnt it?

H4: ...the most powerful chart here!
...but at H4 we see a divergence and the EMA200 seems to be a strong support line. So if you get in the market with some enter shorts take the stop loss over the EMA200 line. EMA20 has crossong the EMA50 at point P1 so it could be that the EMA50 is considered to be a new support line in conjunction with the lower line of BB.
H4 seems one of the most powerful charts if EMA lines like EMA20 and EMA50 are crossing and then the ups and downs between the upper line of BB and its middle line will command the price.

GBPUSD, H1, 2010 December 11
GBPUSD, M30, 2010 December 11

Oh yes!, ...of course!, this kind of trading at H1 and M30 with a tighter spread major currency like GBPUSD is really self-explenatory!

At H1 you can trades the CCI(149) Tops and Bottoms with the upper line of BB (P3, P4, P5, P6) and the EMA100 support line (P1, P2) and by trading the M30 could be a great adventure by looking at CCI(14) Tops and Bottoms with the Pivotal Points. When EMA lines are heading for crossing you could often bet that the prices will run up to a higher important pivotal point, also when it's working out a divergence.

Hope it helps!

Kindest regards!
FXcube

Hi Forexcube,

I am still taking the time to study this thread more in detail. Although it includes an indicator such as CCI, I think the MTF approach and use of S&R ( or Murr. Math lines ) make it unique. That is to say, you dont use the indicators for immediate buy/sell signals, but just as an addon to measure the momentum and real strength of the wave-like character of price. Very well done. It may need a long time of practice in terms of simple screentime, but it is worth it.

IMHO this is also one of the best threads for newer traders, apart from the J16 thread.

My favourite post is still : EURUSD 1h


Thank you and have a nice weekend !




____________
michael

Hi Michael

When young I saw a lot of this fine lady "Ms. Marple" at a time where actors had have excellent speaking-parts (not an action role).

Thank you!

"Knowst thou the land where the lemon trees bloom":

http://forex-strategies-revealed.com/
http://www.babypips.com/school/

Bon week-end!

Kindest regards
FXcube

see #1131, please.

Hi msmarple

Smaller timeframes like H1 - see also this idea:
It is a simple method. You could use the 10 EMA. After you get an entry signal from the CCI Indicator (Top or Bottom), you could wait till a price bar closes below (above) 10 EMA to enter Short (Long). This method could help you to know when exactly you will enter and so you should have no second doubt about acting now or waiting a bit longer.
At the second enter short trade I would take the risk over to enter short at the price action (see the shooting star), may be with some more enter shorts at the 10 EMA crossover three bars later. You've to wait till the close of the candle ist at the other side of 10 EMA.

See also the Zig-Zag-Indicator at #1134, please.

Kindest regards
FXcube

May be it is very useful to support decisions in making entries when following the CCI(14) Top-and-Bottom-Trading.

This is a Zig-Zag-Indicator, which is not repainted.


Corrigendum (1h34am):
see #1135 , please and take the "ZigZag"- Indicator, not the "High_Low_v2_ZigZag".

Hi FXcube,

thanks for the indicator. I set length to 14 as for the CCI, but I do not get the last line down on the EURUSD, H1 chart like yours...

What settings do you use?

In backtest it looks really good, but I read in another forum that the live drawing from high to low / low to high should be very slow...may be too slow for using it with the CCI top/bottom strategy. I will test it when market opens.

Thanks,
Oliver

Hi Olarion1975

Oh, sorry, have take a look again in my directory, this blue (ZigZag) is the right indicator (and not the red one "High_Low_v2_ziZag") .

Kindest regards
FXcube

Thank you Forexcube, I will have a look too when the market opens.

And thanks for the nice comment about my nickname, I am a collector of old movies since many years and so when I first encountered FF I automatically chose a movie character ( like in my many other film forums ), without thinking much about forum status or long-term commitment. Now since trading has become one of my main pursuits I just kept it, no need to prove anything to anyone.

The zigzag might be helpful, I also like to keep it simple and use MTF support and resistance levls, e.g. price action candles showing rejection or confirmation of these levels. More possible when I have the opportunity to post charts again.


Best regards,




______________
michael

May be one or another could use it in some form or another.

ToR_1.02.mq4
by Tom Balfe
This indicator shows you whether a pair is trending or ranging. For trending markets use moving averages and for ranging market use oscillators. It shows ADX values for multiple timeframes to help you decide which trading technique to use. Sometimes you'll see short-term trends against the H4 and D1 trend. It's up to you whether you trade in a ranging market. It seems to Tom Balfe that trading with the long-term trend is best. Having said that, the reason why Tom Balfe made this indicator is to let the trader decide at a glance what to do, or even to do nothing. Staying out of a market is a position too.
See the code at MetaEditor, please.

TA_1.14c.mq4
by Tom Balfe.
This indicator helps you trade by giving you two signals on multiple timeframes. It bases it's recommendations on RSI and stochastics.

Kindest regards
FXcube

How to add custom indicators to MT4 platform

1. Close MT4 platform.
2. On your local disk find the folder you installed MT4 to.
3. Inside it find a folder called "experts", and within it another folder called "indicators".
4. Now, copy your custom indicators as is into the "Indicators" folder.
5. Run MT4 platform.
6. In the upper Menu go to:
"Insert" -> "Indicators" -> "Custom".
You should be able to find there the indicator(s) you've added.

see also:
http://forex-indicators.net/how-to-i...mt4-indicators

Time Cell Trading make often the market analyses with trendlines.

May be with "Tom DeMark Trendlines MT4 indicator" you can use it more automatically.

See in detail here, please:
http://forex-strategies-revealed.com...ark-trendlines