Disliked{quote} Thanks Pinbar... I do appreciate everyone... God BlessIgnored
Was going to post a chart however, when pushing the upload from computer button, it just takes me to the FF calendar.
- #724
- Sep 19, 2013 12:49am Sep 19, 2013 12:49am
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
Pls wht am I suppose when I see stuffs like this in chart "USDSEK" it has three support n one has been broken... Am findin it difficult to upload it, pls check and update me, thanks
g.
I believe . . .
- #725
- Sep 19, 2013 12:49am Sep 19, 2013 12:49am
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
I believe . . .
{quote} Hey Neytiri, In this case I would simply be more biased towards the story that looks more powerful to me. And a powerful story is always the one that occupies more chart space and time and the one that is more obviously defined. At one hand, I have an initial breakout followed by a pull back and a hold up to really well defined long term consolidation box and that is running into a swing low. At the other hand I have a fake out off that swing low (based thus far, on only the initial fake out bar. Given that its the 4H we know that's risky)...
Neytiri
- #731
- Edited 8:31am Sep 19, 2013 8:07am | Edited 8:31am
- Joined May 2010 | Status: HCR-LCS SFP | 6,026 Posts
- #732
- Sep 19, 2013 8:14am Sep 19, 2013 8:14am
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
Do we still have to wait for confirmation on intraday if the fake out is also a pin bar (yesterday on EURGBP 1hr it was a fake out/pin bar)? How about if the wick would have been huge?
I am looking at the EUR/GBP case you mentioned, and that pin bar long certainly looks more risky than waiting for a subsequent confirmation.
g.
I believe . . .
- #735
- Sep 19, 2013 1:19pm Sep 19, 2013 1:19pm
- Joined Jan 2008 | Status: <<--(-$-)-->> | 5,571 Posts
Watching to see if price can pop up above the LLS.
But this is beautiful fake out material!
g.
But this is beautiful fake out material!
g.
I believe . . .
Watching to see if price can pop up above the LLS. But this is beautiful fake out material! {image} g.
This setup could pan out as well if price can break above the LLS but as far as textbook example that I liked was the USD/SEK that you mentioned earlier...price broke through the level and next candle came right back through it and next candle retested the LLS to confirm the bull signal....that fake out gave 100 pips so far..let's see how far it can go
Did you enter that trade ghous? 
- #737
- Edited 8:08pm Sep 19, 2013 5:57pm | Edited 8:08pm
- Joined May 2010 | Status: HCR-LCS SFP | 6,026 Posts
Watching to see if price can pop up above the LLS. But this is beautiful fake out material! {image} g.
This post tells me there is something intrinsic, I am missing about the fake out material.
EDIT: Oh, ok you are on the H4 tf, so you are basically combining the bars on the lower tf.
For some reason, thought you were on the Daily.
- #738
- Edited 8:22pm Sep 19, 2013 6:38pm | Edited 8:22pm
- Joined May 2010 | Status: HCR-LCS SFP | 6,026 Posts
{quote} I agree. Its not uncommon to see people brag about their system/method to the extent that they actually start to condemn and criticize every other method that they come across. There are a million ways to skin this cat, and yes trading breakouts is one hell of an effective method. Just to clear any confusions out there, trading fake outs isn't like stepping on the tails of well informed breakout traders that know the importance of the action after price breaks through the area to base their decisions on more solid information. Fake outs...
How can you say you agree with the babypips article being biased and a hack piece of writing yet, at the same time write this in the basic guide?
Sounds very similar to the article to me.
Introduction to the fake out
We know there are two types of traders participating in these markets. The novice trader that is under capitalized and is pretty naive when it comes to trading knowledge. And then there are the real big pros, the hedge funds, the banks and other institutions who know their stuff and have really big accounts. These 'cool' traders however suffer from a major problem that stems from the size of their account. The problem of liquidity. The FX markets are amongst the most liquid markets in the world yet there still is a problem when a hedge fund wants to sell 10,000,000 units of EUR/USD at resistance where obviously others are willing to short as well. You see why? How many traders do you think want to long in a market that is heading towards resistance? This poses a serious problem and these guys will then take some measures to get rid of this problem. These are smart people BTW. They break their position sizes into smaller lots and execute it at closely bound price levels instead of clicking a 10,000,000 position size at a single price level.They also artificially create buy side liquidity in the market by targeting the novice traders.
Small positions selling into support and buying into resistance, create the "buzz". Or just simply pulling off all orders leaving a vacuum for retail traders to push price through. Enough manipulation to lure traders into thinking price is headed for a break of support/resistance. The breakout traders start jumping in. At resistance for instance, traders short in the market who most likely will have their stops above resistance or below support (the pros know it all!) start to freak out and their stops start getting hit creating more buy side liquidity (a stop loss on a short order is actually a long). By creating an artificial scenario in the market the pro traders have managed to, like a sheep dog, get the herd where they want them to be.
