A consolidation zone and breakout!
Professional Trading Strategy - student selection
So for the first question (why do the levels work sometimes and not always)
Simply put, if they would work always the market would be predictable and everybody would notice and trade by that zones, thus always diminishing the levels until they come to a complete stop and the market would be a simple line only changed by real economic factors like money supply and interest rates... (this is how it should be without 95 % traders - speculators.
The market loves lines and levels, that is not only certain prices, which are very important, but also diagonal lines created by higher or lower, high or lows , (al combination) after a line like this will be confirmed three times or more it becomes obvious thus the traders will want to catch the next wave and to be sure they will put their pending a little lower or higher to be sure to catch the retracement, this will naturaly cause the price not to reach the level and the level will not be reached and retested. Of course can be always retested anytime later.
The other option is breakout, there are two options how it can happen, one is forced when the support line and resistance line are getting closer cause of their kink. So at one point they almost merge (high volume and blind spots where the market is waiting for reaction) and force a breakout, the other form of breakout is random and is really hard to predict as there are many fake breakouts.
It seems i am sure but its really just my opinion
As for the picture, I see diagonal support from the beginning which is then broken and retested as resistance, i´d need more candels to draw the lines precisely, but at the last peak we can see large wicks that means big seller soaking in all the buyers for a good prices and pushing the price down.
David
Simply put, if they would work always the market would be predictable and everybody would notice and trade by that zones, thus always diminishing the levels until they come to a complete stop and the market would be a simple line only changed by real economic factors like money supply and interest rates... (this is how it should be without 95 % traders - speculators.
The market loves lines and levels, that is not only certain prices, which are very important, but also diagonal lines created by higher or lower, high or lows , (al combination) after a line like this will be confirmed three times or more it becomes obvious thus the traders will want to catch the next wave and to be sure they will put their pending a little lower or higher to be sure to catch the retracement, this will naturaly cause the price not to reach the level and the level will not be reached and retested. Of course can be always retested anytime later.
The other option is breakout, there are two options how it can happen, one is forced when the support line and resistance line are getting closer cause of their kink. So at one point they almost merge (high volume and blind spots where the market is waiting for reaction) and force a breakout, the other form of breakout is random and is really hard to predict as there are many fake breakouts.
It seems i am sure but its really just my opinion
As for the picture, I see diagonal support from the beginning which is then broken and retested as resistance, i´d need more candels to draw the lines precisely, but at the last peak we can see large wicks that means big seller soaking in all the buyers for a good prices and pushing the price down.
David
- #189
- Feb 5, 2014 3:03pm Feb 5, 2014 3:03pm
- Joined May 2007 | Status: Ozziedave | 1,344 Posts | Online Now
- #190
- Feb 5, 2014 4:36pm Feb 5, 2014 4:36pm
- Joined May 2009 | Status: step into liquid | 3,460 Posts | Online Now
I have read all your posts, and I found a couple of quite 'nice' answers.
The answer I was expecting was double top, as I know, at least some of you, are trading by patterns. No matter, your answers were quite clever and good.
Let me show you now the larger picture for that zoomed in image:
The answer I was expecting was double top, as I know, at least some of you, are trading by patterns. No matter, your answers were quite clever and good.
Let me show you now the larger picture for that zoomed in image:
<p>{quote}</p> <p></p> U excluded timeframe. As I see u have said it should work on all timeframes. I see price making higher highs higher lows then price breaks down for lower low and r etraces then continues down.
{quote} Very well said. Actually you have mentioned it all and this is how the markets work as big boys have a much clearer picture and at the same time all the data available with them which shows buy / sell orders , pending orders, stop loss placed and other orders which do get executed when they move the markets. So it is very difficult to trade against them as they spike the markets with billions or trillions even and can move markets where they want to and it is always the small retail trader who gets slaughtered in the process and only few...
{quote} Also, nice going. Even if we do not see all the orders or have the insight that big players have, which is an advantage over us common traders, we have something else they cannot take away
Maybe there is an indicator but I doubt it can be very very accurate as long as we don't have access to tier 1 prices.
Actually, like I said, my strategy is based on other things not indicators.
Some of you are using a few indicators from metatrader but you are not told how to use the indicators.
Do you think the banks and big players want you to make money? I don't think so.
That is why I don't want my identity revealed here, publicly, and I will only take a few students. And of course, if I would let everyone know market secrets, how would I be able to make money afterwards?
Stick with me and I guarantee you won't be sorry!
Actually, like I said, my strategy is based on other things not indicators.
Some of you are using a few indicators from metatrader but you are not told how to use the indicators
. Do you think the banks and big players want you to make money? I don't think so.
That is why I don't want my identity revealed here, publicly, and I will only take a few students. And of course, if I would let everyone know market secrets, how would I be able to make money afterwards?
Stick with me and I guarantee you won't be sorry!
Maybe there is an indicator but I doubt it can be very very accurate as long as we don't have access to tier 1 prices.
( like a glue )