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Price is everything

  • #6,781
  • Jan 26, 2011 2:53am Jan 26, 2011 2:53am
hi traders. Have a great day all. I won't be trading as i'm transferring funds from an account to another (who gives a damn huh?) but just wanted to remind to wanderers that if you know how to draw horizontal lines, how much represents 1% of your account, and that market HATES price gaps and LOVES to fill them, you can trade for a living.

Now let's go and steal from those banks.
Hello.
  • #6,782
  • Jan 26, 2011 3:30am Jan 26, 2011 3:30am
Quoting emene
hi traders. Have a great day all. I won't be trading as i'm transferring funds from an account to another (who gives a damn huh?) but just wanted to remind to wanderers that if you know how to draw horizontal lines, how much represents 1% of your account, and that market HATES price gaps and LOVES to fill them, you can trade for a living.

Now let's go and steal from those banks.


can you elaborate on what you mean by "price gaps"?
  • #6,783
  • Jan 26, 2011 3:41am Jan 26, 2011 3:41am
Quoting ericevridge
can you elaborate on what you mean by "price gaps"?
If I may try,
imagine you throw 100 mil. USD into a market moving it for 10 pips. That creates huge gap in the price, it will instantly shoot up or down.
Now imagine you are operator looking into your order-book and you see that this order is not followed by a cascade of other orders (nobody joined-in). What will you do? You will simply start filling the gap by throwing some amounts of USD in other direction. If other sees that and read that too, they will join -- and somebody just donated 100 mil. USD to them in effect.
Simpler scenario is weekend gap: there is some small amount traded among banks even during weekend and assumption is if those small amount created a gap, it should be easily filled when large liquidity comes back.
  • #6,784
  • Jan 26, 2011 3:45am Jan 26, 2011 3:45am
Quoting Sdvsa
If I may try,
imagine you throw 100 mil. USD into a market moving it for 10 pips. That creates huge gap in the price, it will instantly shoot up or down.
Now imagine you are operator looking into your order-book and you see that this order is not followed by a cascade of other orders (nobody joined-in). What will you do? You will simply start filling the gap by throwing some amounts of USD in other direction. If other sees that and read that too, they will join -- and somebody just donated 100 mil. USD to them in effect.
Simpler scenario is weekend...

ahh got it, thank you very much. i've been trying to keep up with all the charts in this thread while not studying school. is there a place where you guys have studied this s/d method? even basics would be much appreciated.
  • #6,785
  • Jan 26, 2011 3:46am Jan 26, 2011 3:46am
long EU @ 1.3709,
willing to bail-out quickly.

edit: damn, more selling than buying now
  • #6,786
  • Jan 26, 2011 3:51am Jan 26, 2011 3:51am
Sure, what I call price gaps are simply large moves with a lack of proper micro resistance / support retest. Some call it price inefficiency. It means that there are always people who get caught in sudden and huge price moves. These moves creates long full bars. Those are price gaps that need to be filled because that's their nature, nature hates emptiness

To make it simple, check any chart, any timeframe, and verify that price almost always retest a previous support or resistance.

For instance, GBPUSD drop yesterday is one.

I don't trade so-called week end gaps cause that's retail traders gaps, other trader with a proper feed do not see those gaps, because they actually do not exist, but that's another story I don't want tot get into.

All for now, this is not my thread and I do not want to pollute it. PM available if you want.



Quoting ericevridge
can you elaborate on what you mean by "price gaps"?
Hello.
  • #6,787
  • Jan 26, 2011 3:55am Jan 26, 2011 3:55am
bought crude
  • #6,788
  • Jan 26, 2011 3:56am Jan 26, 2011 3:56am
Quoting emene
Sure, what I call price gaps are simply large moves with a lack of proper micro resistance / support retest. Some call it price inefficiency. It means that there are always people who get caught in sudden and huge price moves. These moves creates long full bars. Those are price gaps that need to be filled because that's their nature, nature hates emptiness

To make it simple, check any chart, any timeframe, and verify that price almost always retest a previous support or resistance.

For instance, GBPUSD drop yesterday is one.

I don't trade...
Did you take the Lori course? Just a bit nosy.
  • #6,789
  • Jan 26, 2011 3:59am Jan 26, 2011 3:59am
(Please talk trading now, PM me if needed, this is not my thread)

Sorry Red.

Quoting Ss7225
Did you take the Lori course? Just a bit nosy.
Hello.
  • #6,790
  • Jan 26, 2011 4:02am Jan 26, 2011 4:02am
Quoting Sdvsa
long EU @ 1.3709,
willing to bail-out quickly.

edit: damn, more selling than buying now
Bailed-out.
  • #6,791
  • Jan 26, 2011 4:14am Jan 26, 2011 4:14am
Quoting ericevridge
ahh got it, thank you very much. i've been trying to keep up with all the charts in this thread while not studying school. is there a place where you guys have studied this s/d method? even basics would be much appreciated.
Start with some quants around there at FF, for example Oldquant.
And then of-course Darkstar and his thread and posts (and do a request of his book with some words of encouragement :-) )
  • #6,792
  • Jan 26, 2011 4:25am Jan 26, 2011 4:25am
Quoting Sdvsa
imagine you throw 100 mil. USD into a market
We've had this situation on EU now: somebody just dropped a bomb there, price shooting down 20 pips and the gap is now being filled.

That's the difference between launching a rocket (Red does this) or just dropping the bomb down there.

We should now see that this was a false move, because how else would that gap get filled so easily?
  • #6,793
  • Jan 26, 2011 4:31am Jan 26, 2011 4:31am
Quoting redsword11
Attachment



stops @ 1.48281 tg @ 1.51132

Attached Image (click to enlarge)
Click to Enlarge Name: gc.jpg Size: 50 KB



partial close
  • #6,794
  • Jan 26, 2011 4:33am Jan 26, 2011 4:33am
EU

Quoting Sdvsa
We've had this situation on EU now: somebody just dropped a bomb there, price shooting down 20 pips and the gap is now being filled.

That's the difference between launching a rocket (Red does this) or just dropping the bomb down there.

We should now see that this was a false move, because how else would that gap get filled so easily?
Attached Image (click to enlarge)
Click to Enlarge Name: eu.gif Size: 20 KB
Hello.
  • #6,795
  • Jan 26, 2011 4:40am Jan 26, 2011 4:40am
bought kiwi
  • #6,796
  • Jan 26, 2011 4:50am Jan 26, 2011 4:50am
Quoting redsword11
bought kiwi

bailled it, sold eu stops @ 1,37333
  • #6,797
  • Jan 26, 2011 4:58am Jan 26, 2011 4:58am
Quoting redsword11
bailled it, sold eu stops @ 1,37333

Attached Image (click to enlarge)
Click to Enlarge Name: eu.jpg Size: 59 KB
  • #6,798
  • Jan 26, 2011 5:06am Jan 26, 2011 5:06am
ADDED MORE EU SOUTH
  • #6,799
  • Jan 26, 2011 5:26am Jan 26, 2011 5:26am
bought usdsek
  • #6,800
  • Jan 26, 2011 5:38am Jan 26, 2011 5:38am
sell stop cable @ 1.58585 stops @ 1.59055
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