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Price is Everything Chat Room

  • #2,921
  • Jun 4, 2012 12:12am Jun 4, 2012 12:12am
Quoting Shaggy_rock
So you guys say this red box is compression?
You must be joking, right ?
I'm obviously in the wrong thread.

Hi Shaggy, by compression I mean the price action of Friday London session and Thursday both London and NY session. Price were steadily decreasing liquidating all supply from the market. Market makers were getting rid of any ceilings that would hinder the price at the NFP spike up.

In your red box I can see clear Price action: 1 spike down to induce shorts, 2 - immediate spike up to hit the stops of the shorts and induce longs, 3 - retest of the lows to hit the stops of the new longs (notice that they went a little lower - that's where the stops were) and induce new shorts, and then - up we go goodbye.

Eager and inexperienced traders would get their stops hit three times. But we, thanks to the knowledge kindly shared by Red, If and others, could see the compression in the previous sessions, and thus were aware of the real intentions of the big boys.

Les_Paul
  • #2,922
  • Jun 4, 2012 4:24am Jun 4, 2012 4:24am
some views on AUDUSD to get the chat going
also posted on AG, i'd love to have your views on it
direct link of the whole image, cause FF shrinks it http://i.minus.com/inRTZxwTgJi80.png
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  • #2,923
  • Jun 4, 2012 6:55am Jun 4, 2012 6:55am
missed QM dxy 4 H with PB nice example
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  • #2,924
  • Jun 4, 2012 8:35am Jun 4, 2012 8:35am
QM on EU 5mins.
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Trade Smart
  • #2,925
  • Jun 4, 2012 8:37am Jun 4, 2012 8:37am
EU 30mins
Kind of compression, but we had spikes in both ways up and down.
Compression would be to clear the way down, no ?
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Trade Smart
  • #2,926
  • Jun 4, 2012 10:45am Jun 4, 2012 10:45am
Quoting Osman
EU 30mins
Kind of compression, but we had spikes in both ways up and down.
Compression would be to clear the way down, no ?
CP up as there was buying pressure. I used DX chart as it applied for most USD pairs that wanted to break levels or ranges.

I hope this doesn't confuse things for some traders - but there is a fine line between CP and pressure.

..
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  • #2,927
  • Jun 4, 2012 6:52pm Jun 4, 2012 6:52pm
Quoting Tyoon
CP up as there was buying pressure. I used DX chart as it applied for most USD pairs that wanted to break levels or ranges.

I hope this doesn't confuse things for some traders - but there is a fine line between CP and pressure.

..
Hey Tyoon,

Thx for your answer, on the usd index example you can see clear down wicks which show you they are taking out the demand left in order to go further down, the thing is when to know if the wicks are to take out demand left and leaving it prepare for a down move or its that buyers are buying all the way up... as you say its a fine line.

How to know the difference before it shoots up or down ?

Os.
Trade Smart
  • #2,928
  • Jun 4, 2012 8:55pm Jun 4, 2012 8:55pm
Are 1,2, and 3 all Supply Levels? Any better than the other?
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DM if you have any questions
  • #2,929
  • Jun 5, 2012 12:20am Jun 5, 2012 12:20am
Quoting jkrick33
Are 1,2, and 3 all Supply Levels? Any better than the other?
None of them are very appealing to me.


1) Whilst it was a strong move down, it re-acted to the supply created before and it has been spiked already (see Pin bar on 31st May)

2) Clearly consumed already

3) Also consumption of supply before, also the wicks in the move indicated any left over supply has been consumed already.

It doesn't mean the levels won't work, I would just need to see solid PA to enter a trade here.
  • #2,930
  • Jun 5, 2012 2:21am Jun 5, 2012 2:21am
Quoting Osman
How to know the difference before it shoots up or down ?.
These are important questions that can lead to more answer about how price moves.

I mentioned about selling pressure. The main difference between CP and pressure is that CP clears the path while pressure defines the path.

..
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  • #2,931
  • Jun 5, 2012 5:18am Jun 5, 2012 5:18am
Quoting Tyoon
These are important questions that can lead to more answer about how price moves.

I mentioned about selling pressure. The main difference between CP and pressure is that CP clears the path while pressure defines the path.

..
Very nice chart and explainations Tyoon!
I absolutely love your charts!
Keep up the good work!
Mel
  • #2,932
  • Jun 5, 2012 7:55am Jun 5, 2012 7:55am
Quoting @mel
Very nice chart and explainations Tyoon!
I absolutely love your charts!
Keep up the good work!
Mel
Glad you like them Mel.

Quoting PM
I have been studying the PIE strategy for some time now and would like to compliment my knowledge with an understanding of how the Dollar Index is used. I see you referring it to it recently and hope that you can go some way to explaining how you use it.
USDX/DX/Dollar Index is simply a composite of some USD pairs (http://www.babypips.com/school/images/sophomore/usdx-components.png) therefore acts as a general guide of what the dollar is doing.

As I mostly trade USD pairs and JPY pairs, I use DX for two things;
1. confluence - ie, if GU is at demand and DX is at supply that would generally be a good match. Ideally you want as many correlations to be in sync, if you trade with correlations that is..
2. USD and JPY phasing (comparative analysis) - discount what currency is leading the pairs. RED talks a lot about it in PIE.. I had forgotten what pages but a few friends have given me some links and pages.

PIE page 426, 447,464,470, 479 about UJ

http://www.forexfactory.com/showthread.php?p=4383708#post4383708

http://www.forexfactory.com/showthread.php?p=4404448#post4404448

http://www.forexfactory.com/showthread.php?p=4357005#post4357005

http://www.forexfactory.com/showthread.php?p=4457112#post4457112

Hope this helps
  • #2,933
  • Jun 5, 2012 9:10am Jun 5, 2012 9:10am
Hometrading thank you for the post! Anything helps


Quoting hometrading
None of them are very appealing to me.


1) Whilst it was a strong move down, it re-acted to the supply created before and it has been spiked already (see Pin bar on 31st May)

2) Clearly consumed already

3) Also consumption of supply before, also the wicks in the move indicated any left over supply has been consumed already.

It doesn't mean the levels won't work, I would just need to see solid PA to enter a trade here.
DM if you have any questions
  • #2,934
  • Jun 5, 2012 9:47am Jun 5, 2012 9:47am
Good Info
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DM if you have any questions
  • #2,935
  • Jun 5, 2012 1:37pm Jun 5, 2012 1:37pm
Quoting Tyoon
Glad you like them Mel.



USDX/DX/Dollar Index is simply a composite of some USD pairs (http://www.babypips.com/school/images/sophomore/usdx-components.png) therefore acts as a general guide of what the dollar is doing.

As I mostly trade USD pairs and JPY pairs, I use DX for two things;
1. confluence - ie, if GU is at demand and DX is at supply that would generally be a good match. Ideally you want as many correlations to be in sync, if you trade with correlations that is..
2. USD and JPY phasing (comparative analysis) - discount...
Hey Tyoon,

Thx for the charts, really helpfull !!

I tend to check the usd index but on a daily tf, here you have my views.

Price got rejected from a supply level right at NFP, it went down to a demand and up again, I see the next supply level between 84.10 and 84.70

Os.
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Trade Smart
  • #2,936
  • Jun 5, 2012 2:15pm Jun 5, 2012 2:15pm
Quoting Osman
Price got rejected from a supply level right at NFP, it went down to a demand and up again..
Mark 83.6 on DX daily and scroll back through history and investigate how that level was used. Mark when price pivoted from there, when used as supply demand. You'll see that this level is very important, almost as important as the 84.3 you mentioned.
  • #2,937
  • Jun 5, 2012 2:51pm Jun 5, 2012 2:51pm
Heres 83.6 Level marked
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DM if you have any questions
  • #2,938
  • Jun 5, 2012 2:52pm Jun 5, 2012 2:52pm
Quoting Tyoon
CP up as there was buying pressure. I used DX chart as it applied for most USD pairs that wanted to break levels or ranges.

I hope this doesn't confuse things for some traders - but there is a fine line between CP and pressure.

..
I could be wrong here, but this is the way I see it now, though during NFP day I was buying dips there was enough room before they were capped at supply.

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Charts are limited in nature. What is the relative location?
  • #2,939
  • Jun 5, 2012 3:32pm Jun 5, 2012 3:32pm
Quoting jkrick33
Heres 83.6 Level marked
Jkrick, i think he means the level as a S/R point of view, pivotal.

Os.
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Trade Smart
  • #2,940
  • Jun 5, 2012 4:50pm Jun 5, 2012 4:50pm
Quoting Osman
Jkrick, i think he means the level as a S/R point of view, pivotal.

Os.
Now check how this daily level measures out with the components of DX. Primarily these three:

EU 1.23
UCHF .976
GU 1.527

Not only is everything on a chart connected, but also every chart is connected.
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