Hi Bstay2,
Many thanks fort this excellent post. Good to remind us that "us MMM people" should always have a little MM story in mind (which traders are trapped, what might be the trapped volume, where are pools of liquidity that big boys can absorb for their positioning or profit taking). I occasionally forget that myself.
Please allow me a little rambling about weak and strong WMs. In my opinion, the M on Jan 31st was strong. Not weak at all. Look at the TDI on 15m, 1h, 4h regarding divergence, absolute position and waves completed. The following charts reflect the exact situation at the time of the 15m chart (uncompleted candles on 1h and 4h).
A weak M is good for roughly 50 pips (or 3.75 X ATR on 15m), peak to peak, possible to grab relatively safe 30 - 40 pips there. A strong M should go at least 90 pips (or 6.75 X ATR on 15m).
Some more examples below. Didn't include the result of the moves, you have to rustle up your own charts for that, a little interactivity is good for brain cells. (o;
Good pipping!
31 Jan - Strong M
15m
http://photoupload.org/uploads/13288648351.png
1h
http://photoupload.org/uploads/13288648352.png
4h
http://photoupload.org/uploads/13288648353.png
Many thanks fort this excellent post. Good to remind us that "us MMM people" should always have a little MM story in mind (which traders are trapped, what might be the trapped volume, where are pools of liquidity that big boys can absorb for their positioning or profit taking). I occasionally forget that myself.
Please allow me a little rambling about weak and strong WMs. In my opinion, the M on Jan 31st was strong. Not weak at all. Look at the TDI on 15m, 1h, 4h regarding divergence, absolute position and waves completed. The following charts reflect the exact situation at the time of the 15m chart (uncompleted candles on 1h and 4h).
A weak M is good for roughly 50 pips (or 3.75 X ATR on 15m), peak to peak, possible to grab relatively safe 30 - 40 pips there. A strong M should go at least 90 pips (or 6.75 X ATR on 15m).
Some more examples below. Didn't include the result of the moves, you have to rustle up your own charts for that, a little interactivity is good for brain cells. (o;
Good pipping!
31 Jan - Strong M
15m
http://photoupload.org/uploads/13288648351.png
1h
http://photoupload.org/uploads/13288648352.png
4h
http://photoupload.org/uploads/13288648353.png
DislikedLet's compare the price actions for EUR/USD on Jan 31st with today Feb 9th and see if we can figure out what "market makers" are thinking. Let's see if such a "weak M" can be identified next time and taken as valid entry.
Jan 31st,
#1 & #2 - market makers "allowed" price to run up 122pips from Monday's LOD into Tuesday's asian session highs, making everybody go bullish and buying or holding longs.
(...)Ignored