DislikedDude when your a retail trader you're not trading in the market, your hedging in the market with either a market maker or a bank. So when you buy market actually sells. THis is at the banks descretion as if you know what you are doing the bank wont want to take the loss he will process you direct. 99% of the time it wont be the case. So your logic doesn't add up from this point of view. If a bunch of retailers sell market will actually go up if the banks take the hedge. It's also their interest to preserve that area and will probably be buying so...Ignored
1) US have the most number of stocks companies listed, it's the timing aligned the best throughout the world for trading, the japan, the china, the india, the european and the US. during stocks open, all volume comes in and out, there is correlation across with dollar index as well, and they also trade fundamental data news.
2) On the timing when they are online or market is open, usually somewhere around 0830am where datas like unemployments etc kicks in, as u may observe just after 0800hours, all 1 min and 5 min bars are quite active and high volume.
3) the europeans are back from their lunch/brunch to trade after their own indices have settled.
NEWS Are late news by the time it reaches retailers its too LATE, even for datas.
the big sudden increased in volume was due to 2 reasons mainly .
* Tier 1 banks execution, like JP morgan chase, goldmansach, barclays, etcetc
then we have tier 2 and tier 3.
tier 1 bank execute trades in figures way higher than tier 2, then tier 2 higher than tier 3.
when the quotes comes in back tier 1 bank, they shakes the market, one throw all throw, one buy all BUY.
but most of the time, they also rely on buy sell stops or robot trading, execution are based on sudden volume increase and orders started to fill in very quickly, it pushes up the main bar in 1, 5 and 15 and even 30min, then we get our 1 hour closing on that one LONG BAR.
boilinger on 5 and 15 started to spread out, when they don't happen don't counter trade it! use MACD or hienken heshi to see the when the curve is going to end. only ride the trend on retrace don't counter it, until it reaches level 2 on orderboards of offers and bids, these bull bear camp towers will help to block the further advancement.
all resistance 1 and support 1 are meant to BREAK OUT during us session, don't place limits there to counter it , only use buy sell stops during us session, if the currency pair reversed so be it, eur/usd is a emotional pair, especially on thursday and friday and when the moon is full.
tier 1 bank executes trades in billions, somewhere 200-500 billions, when goldman sach choose a direction by the chief dealer, after another tier 1 banks hears they will also follow the same, big boss says sell, his mafias also will go along and sell.
However, they will trail very quickly, and most of the time trades in intra-day are easily locked into breakeven with their own system/robots. when it reaches a near consolidation or near support 1 / resistance, another volume is pumped into it
until it reaches the orderboard of level 2 or even level 3 depending on volatility, on the midst when they push in a trend, these cunning guys already placed reversed pending orders along each level near orderboard 2 and 3. and they starts taking profits thereafter, most of the time around 10,30-11,30am .
timing is based on forexfactory calender.
RSI and stoch will never work on breakout due to volume, remember the time draghi's ECB 1 hour 150 up, 30min 200 pips down, how is RSI and STOCH going to follow at all? only level of pricing through buy sell stops.
retailers must think opposite of how they trade to survive. don't be bias on bull/bear.
i can be wrong, just sharing this as shared to me by a former chief dealer from tier 1 bank.
to trade a high probability trade there are 2 ways, one is based on offers/bids on good level on the hour4 tl supply/demand, limits can be done.
one is to follow the trend only, through buy sell stops with a good RR.
i had my limits on 1.2380 executed yesterday based on orderboard and hour4 TL/supply zone.
