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JohnFX's Price Magnets

  • #481
  • Mar 8, 2006 10:16am Mar 8, 2006 10:16am
Hi John,

thank you so much for sharing

but i have one question....

i looked at charts and there were many gaps, how you choose with of those is real magnet???

thanks again and good luck
  • #482
  • Mar 8, 2006 10:29am Mar 8, 2006 10:29am
Quoting kikuts
Hi John,

thank you so much for sharing

but i have one question....

i looked at charts and there were many gaps, how you choose with of those is real magnet???

thanks again and good luck
My friend, that's the thing I have been struggling with in order to perfect the entry, stop and exit. I hoping someone may have some good ideas to help perfect it. Tha's why I decided to release my find.

Thanks;

JohnFX
  • #483
  • Mar 8, 2006 10:32am Mar 8, 2006 10:32am
and one more question...


how long you keep those magnets??? when they are hit you are taking them off???
you are searching for magnets every day?

thanks again and sorry for questions
  • #484
  • Mar 8, 2006 10:52am Mar 8, 2006 10:52am
Quoting kikuts
and one more question...


how long you keep those magnets??? when they are hit you are taking them off???
you are searching for magnets every day?

thanks again and sorry for questions
Once I identify them, I mark them on my chart and usually write the price point down in a log. Because even after several days have passed they still are in play once price starts to head in their direction.

JohnFX
  • #485
  • Mar 8, 2006 11:06am Mar 8, 2006 11:06am
big thanks
  • #486
  • Mar 8, 2006 6:51pm Mar 8, 2006 6:51pm
Quoting JohnFX
Thanks.

EURUSD has one at 1.1937


JohnFX
The 1.1937 gap magnet has been hit.

JohnFX
  • #487
  • Mar 8, 2006 7:27pm Mar 8, 2006 7:27pm
This part may be important. I looked at a Metatrader 1-minute chart for the same time period as John's example. There were gaps, but in different places. So you may not the same magnets (and thus the same results) with a different platform and data feed.



Quoting JohnFX
Mike;

I use Sierracharts and it's fed by Trackdata.

JohnFX
  • #488
  • Mar 8, 2006 7:34pm Mar 8, 2006 7:34pm
Quoting FXLogic
This part may be important. I looked at a Metatrader 1-minute chart for the same time period as John's example. There were gaps, but in different places. So you may not the same magnets (and thus the same results) with a different platform and data feed.
Yes that is true. I have also noticed the same thing wiht FXCM's Netdiana charts.

Guys look at the chart I post a little while ago on my site. www.jajr.com

And look at the eurusd chart now.

JohnFX
  • #489
  • Mar 8, 2006 8:28pm Mar 8, 2006 8:28pm
John,

First of all, thank you for sharing with us. I understand what you are saying about the gaps by looking at your charts, but I don't understand how you choose the gaps you chose. The reason I wonder is because I see other gaps in your charts that you don't point out.

Thanks,

Fish
  • #490
  • Mar 8, 2006 8:40pm Mar 8, 2006 8:40pm
Quoting kcfish
John,

First of all, thank you for sharing with us. I understand what you are saying about the gaps by looking at your charts, but I don't understand how you choose the gaps you chose. The reason I wonder is because I see other gaps in your charts that you don't point out.

Thanks,

Fish
There are several gaps that get filled very quickly or where price doesn't get very far from them. The ones where price moves many pips away from, are the ones which are worth trading. Sometimes I play the ones where price goes only 10-20 pips away and then starts to head back to the gap magnet. Those can be played as scalps. Obviouly I don't have time to post those. And you have to use some discretion when trading those. It's not 100% mechanical.

Thanks;

JohnFX
  • #491
  • Mar 8, 2006 9:25pm Mar 8, 2006 9:25pm
Do you ever think the 1.1856 target will be hit in the EUR/USD? I bet a lot of people were stopped out on that one, along with me. East
  • #492
  • Mar 8, 2006 9:40pm Mar 8, 2006 9:40pm
John,

Nice job. How long did that take to figure out? Generally, the easier it is to see, the harder it is to find. Very promising. If everyone gets together on this maybe we can compose a FF System of our own that works extremely well.
  • #493
  • Mar 8, 2006 9:57pm Mar 8, 2006 9:57pm
Quoting Adrian548
John,

Nice job. How long did that take to figure out? Generally, the easier it is to see, the harder it is to find. Very promising. If everyone gets together on this maybe we can compose a FF System of our own that works extremely well.
Thanks. Hopefully we can. I'm open to suggestions.

JohnFX
  • #494
  • Mar 8, 2006 10:03pm Mar 8, 2006 10:03pm
I wonder? Do you think the different charts with their respective gaps matter? John uses his charts. I use MT4. If I follow the gaps I see there, is it possible to have the same conclusions, but at different entry/exit points? Thoughts by anyone are welcome.
  • #495
  • Mar 9, 2006 12:31am Mar 9, 2006 12:31am
Hmmm.....this is just bizaar!

Have you actually thought about what it is that causes the gaps in your charts and why your charts have different gaps to other data providers?

Lets assume that your chart is displaying bid data.

The price will move on the chart when the bid price changes. A majority of the time this will happen within a 1 minute bar - i.e. it will occur between 0 and 59 seconds. Occasionally, the market will trade at one price at 59 seconds and then tick up or down at 60 (or 0) seconds. This will mean that the closing price of the candle will be different to the opening price of the next candle. This is what is causing the gaps in your price data. Since there are 1440 minutes in a day, there are 1440 opportunities per day for this to occur. It is not surprising that these gaps occur.

However, these gaps are purely an artefact of the date. Any method that has any predictive value over the long term should give pretty much the same result on any data source - these price magnets clearly will not. I suspect that you would have gotten similar results if you had randomly selected price magnets because the gaps in the data are also purely random and I would go so far as to say they have no predictive value whatsoever.

I would say there is an enormous amount of observational bias in the reported results.

I am sure that I will get criticised for this post but I just wanted to point out what seems quite obvious to a casual observer.

Simon
  • #496
  • Mar 9, 2006 2:16am Mar 9, 2006 2:16am
Gaps do not matter in forex trading as the market is 24 hours and it is an interbank market meaning that just because it hasn't traded with your broker or provider at that price it doesn't mean that somewhere with one of the other brokers it has not traded. This is reflective of currency market a clean market with no gaps ( the reason why we like it so much)
  • #497
  • Mar 9, 2006 6:01am Mar 9, 2006 6:01am
Quoting Adrian548
I wonder? Do you think the different charts with their respective gaps matter? ...
Hmm.. on my 1 minute charts (vt trader) I have gaps in completely different places. Sometimes where JohnFX's charts shows a gap mine will have none and vice versa. But, I did notice that my gaps/magnets are also valid in that price will also return to them. So what does this mean? It means take 2 tylenol's instead of 1.
  • #498
  • Mar 9, 2006 7:59am Mar 9, 2006 7:59am
Can someone please update me of the price gaps as they come up. I do not have the sierra charts and my charts don't show any gaps. I will have the sierra charts shortly thanks
  • #499
  • Mar 9, 2006 8:04am Mar 9, 2006 8:04am
Quoting pippymonster
Can someone please update me of the price gaps as they come up. I do not have the sierra charts and my charts don't show any gaps. I will have the sierra charts shortly thanks
I'm not sure what causes them, but I know they seem to be high percentage targets.

I just uploaded a new EURUSD chart from last night (London).

www.jajr.com

JohnFX
  • #500
  • Mar 9, 2006 9:44am Mar 9, 2006 9:44am
I see that the last two magnets were hit. Are there any new ones I just loaded the sierra charts now I am having problems configuring my charts to look like yours. Thanks
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