Wow this thread is dead.Lets bring some excitement
!
As FX Pro-said knowledge of Price action is critical.There are so many variables about PA that one should seriously study.
But for fun lets look at common spikes (stop hunt)before a major turn around.
http://www.daytradingforexlive.com/w.../strategy1.jpg
if Bank X¯ was looking to sell the EUR/USD then they would push the price up, which it turn would begin to trigger buying pressure from retail traders. At this same point they would begin to sell into all that buying pressure, and then the market instantly turns to the downside. This is the central reason many retail forex traders consistently enter the market at exactly the wrong time. The unfortunate part about this is the fact that this information is actually the most powerful thing the banks give us, but only if we open our eyes to it. The manipulation of price tells us what position they have been accumulating and thus tells us the direction they intend to drive the price. I urge you to look back at all large market moves. Before most every move in the forex market you will see a tight range bound¯ period that is accumulation followed by a false push in the opposite direction of the trend.
!As FX Pro-said knowledge of Price action is critical.There are so many variables about PA that one should seriously study.
But for fun lets look at common spikes (stop hunt)before a major turn around.
http://www.daytradingforexlive.com/w.../strategy1.jpg
if Bank X¯ was looking to sell the EUR/USD then they would push the price up, which it turn would begin to trigger buying pressure from retail traders. At this same point they would begin to sell into all that buying pressure, and then the market instantly turns to the downside. This is the central reason many retail forex traders consistently enter the market at exactly the wrong time. The unfortunate part about this is the fact that this information is actually the most powerful thing the banks give us, but only if we open our eyes to it. The manipulation of price tells us what position they have been accumulating and thus tells us the direction they intend to drive the price. I urge you to look back at all large market moves. Before most every move in the forex market you will see a tight range bound¯ period that is accumulation followed by a false push in the opposite direction of the trend.
In trading, you have to be defensive and aggressive at the same time
