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Price Attraction Points

  • #61
  • Jan 30, 2011 5:07pm Jan 30, 2011 5:07pm
Quoting redart007
Chart please....?

Sorry. I didn't post one because this kinda looked like a big boy's thread

Here ya go.

Self explanatory.

http://www.forexfactory.com/attachme...1&d=1296428703
Attached Image (click to enlarge)
Click to Enlarge Name: pin bar fills.gif Size: 12 KB
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  • #62
  • Jan 30, 2011 5:27pm Jan 30, 2011 5:27pm
Any comment on the levels that don't appear to have retested on the chart you posted. Are you using some sort of proprietary filter?
Attached Image (click to enlarge)
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  • #63
  • Jan 30, 2011 5:45pm Jan 30, 2011 5:45pm
Quoting Guerrillawar
Any comment on the levels that don't appear to have retested on the chart you posted. Are you using some sort of proprietary filter?

Nope. No filter.

Risk/money management, and unfilled pending orders keep me out of bad situations.

I don't automatically jump in. History shows me that it most likely goes the other way for a bit. So I set things up accordingly.

I risk no more than $0.01 per $300 in the account, and I usually net 10-14% monthly.

The key here is compounding.
No way I'll wreck this... It's a beer truck!
  • #64
  • Edited 6:15pm Jan 30, 2011 5:52pm | Edited 6:15pm
Thanks Bruce, never looked at Pins like that, I like the idea of it.

Do you look for an entry at the top / bottom of the pin head or where the wick starts?

Will a spike high /low - i.e not necessarily a pin bar hold the some credence?


Quoting Bruce Flea
Sorry. I didn't post one because this kinda looked like a big boy's thread

Here ya go.

Self explanatory.

http://www.forexfactory.com/attachme...1&d=1296428703
  • #65
  • Feb 1, 2011 7:09pm Feb 1, 2011 7:09pm
Quoting redart007
Thanks Bruce, never looked at Pins like that, I like the idea of it.

Do you look for an entry at the top / bottom of the pin head or where the wick starts?

Will a spike high /low - i.e not necessarily a pin bar hold the some credence?

I look for anything with a long wick that is out of the ordinary, and singular in nature.

Here is a great example of a spike off of price on the Aussie that just filled today.

I had been accumulating buys in the lower pink zone based on two things: A swap rate in my favor, and that spike that was 50 pips above anything else around on the daily.



http://oi56.tinypic.com/27wrpeq.jpg
No way I'll wreck this... It's a beer truck!
  • #66
  • Feb 2, 2011 7:22am Feb 2, 2011 7:22am
hi will.nice thread start.i will follow u.
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  • #67
  • Feb 2, 2011 10:00am Feb 2, 2011 10:00am
Heres a thought... I hope I can make this clear.

During High impact news events we see much higher volatility and we surmise this means there is very little liquidity remaining in the market. Continuing with this logic, positions will still need to be filled so price will inherently be attracted to where liquidity remains to fill the orders that automatically appear after the news release.

Okay then... how do we determine where the liquidity remains and how can we trade this scenario?

I would contend the liquidity(or price attraction points) will reside a certain distance from the price printed just before the news release. Possible spots could be round numbers, S/R, etc.

How to trade this is another matter... I am more inclined to wait for price to hit these areas of liquidity... overshoot... and then fade the move... aiming for the opposite pool of liquidity. Any thoughts??
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd_m15_1_7_11.gif Size: 28 KB
  • #68
  • Feb 2, 2011 3:02pm Feb 2, 2011 3:02pm
Skracor: I agree strongly with your theory. I'm not sure how long you've been trading but if you have been around a while and remember how price would behave when it wasn't such a sure thing what the FOMC would do on release day. Price used to definitely do what you have stated in spades. Maybe someone can develop that concept further because there is merit to it.
  • #69
  • Feb 4, 2011 8:32am Feb 4, 2011 8:32am
Quoting plasmapants
does this work. want to go short so bad but too chicken
christmas came early on eur/aud
bull in a china shop
  • #70
  • Feb 4, 2011 5:16pm Feb 4, 2011 5:16pm
Thanks GeurillaWar

Things moved in a similar way today at Non-Farm release...
I think I recall someone saying Eur/Usd likes to use 70s and 30s in the same manner as round numbers. Today would seem to circumstantially support that theory, but the key being the liquidity behind the theory. Price had to move to these areas to fulfill the Market orders being placed.

This is fascinating behavior to me.
Attached Image (click to enlarge)
Click to Enlarge Name: eurusd_m15_2_4_11.gif Size: 29 KB
  • #71
  • Feb 4, 2011 8:09pm Feb 4, 2011 8:09pm
That big long wick on that overshoot will fill in. Probably sooner, rather than later.

The weekly is a big pin bar too... So, at some point in the near future, we know where price will be back to.
No way I'll wreck this... It's a beer truck!
  • #72
  • Feb 13, 2011 6:19pm Feb 13, 2011 6:19pm
I'm really surprised this thread didn't get more interest. Not ready to see it die Ask any professional on a desk and they will tell you they are concerned with where their trade idea plans on exiting. Quantitative exits are a core component to their operations in the foreign exchange market.
Anyhow this type of thinking is much more than gap fill type strategies. But gaps do play a role in exit based thinking. Some interesting gaps exist in Eurusd, Nzdusd and Eurjpy. There was real money dollar selling during the NY session on Friday (11-Feb-2011). So for anyone who is totally fresh to thinking about trading with the exit in mind first watch these levels from the Friday close this week.
  • #73
  • Feb 14, 2011 11:58am Feb 14, 2011 11:58am
I have identified 8 techniques for identifying attraction points. 6 are price patterns of which 3 are mentioned in the thread.
  • #74
  • Feb 16, 2011 11:08am Feb 16, 2011 11:08am
Consider the abandonned wick attractor more commonly identified as a supply/demand zone.
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  • #75
  • Feb 16, 2011 12:01pm Feb 16, 2011 12:01pm
Quoting wmd
I have identified 8 techniques for identifying attraction points. 6 are price patterns of which 3 are mentioned in the thread.
And what are the other 3+2?
  • #76
  • Feb 16, 2011 12:30pm Feb 16, 2011 12:30pm
All in good time.
  • #77
  • Feb 17, 2011 12:32pm Feb 17, 2011 12:32pm
Looking forward to following along.

Kind Regards,
NeoRio
Sentiment: Short on cash. Long on hope.
  • #78
  • Feb 18, 2011 5:53am Feb 18, 2011 5:53am
From the other person from the other thread:
Quoting emene
Chaos, right ? Some call it noise on M1. This just the same stuff over and over again.
http://www.forexfactory.com/attachme...4&d=1298027698
How big a gap's left to fill on EU and GU from past 2 years?
  • #79
  • Feb 18, 2011 9:36am Feb 18, 2011 9:36am
Quoting Sdvsa
From the other person from the other thread:
http://www.forexfactory.com/attachme...4&d=1298027698

How big a gap's left to fill on EU and GU from past 2 years?
Gap vs. Refill,
suppose we shall see many of those...
Attached Image (click to enlarge)
Click to Enlarge Name: 2011-02-18_EU_M15-Refill.png Size: 16 KB
  • #80
  • Feb 20, 2011 3:00pm Feb 20, 2011 3:00pm
Quoting Sdvsa
Gap vs. Refill,
suppose we shall see many of those...

Interesting concept.
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