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Why does price make a pullback after a break?

  • #41
  • Feb 5, 2014 5:09pm Feb 5, 2014 5:09pm
Quoting FX-HedgeFund
"You think you know everything.......and you don't" When you are a new trader...your mouth is WIDE OPEN....while your ears are completely closed. LIFE...is ALWAYS the best teacher.....because people are usually not listening to the obvious I lost $10,000 USD my first year in FX accounts and expenses....
Seems like you're simply trying to offer some advice. Just ignore the " " .
"They" probably never had 10k to lose to begin with.

When the Joker is in the deck.. fear not and play it well
  • #42
  • Feb 5, 2014 5:12pm Feb 5, 2014 5:12pm
Quoting Slim Buffett
{quote} Hello, I don't trade with FXCM but no, I can't understand why the spread would have widened that much due to "volatility" during some of the most liquid of times. For me, the spread normally widens during periods of very low liquidity. So what's up with that?
I had Oanda widen 30 pips about a week or so ago on an AUD news release well into the Asian session.... It is what it is... Business... Amateur take downs...
SPC * Swollen PocketZ Crew!
  • #43
  • Feb 5, 2014 5:21pm Feb 5, 2014 5:21pm
Quoting JoeNY
{quote} I had Oanda widen 30 pips about a week or so ago on an AUD news release well into the Asian session.... It is what it is... Business...
I don't know what to tell ya'. That simply hasn't happened to me. Spreads widen after close of NY for a bit
(one broker stops trading for a few minutes @ 5pm EST due to previous issues) ) and on holidays, etc., other than 1 or 2 pips at times.

Just my experience.
When the Joker is in the deck.. fear not and play it well
  • #44
  • Feb 5, 2014 5:25pm Feb 5, 2014 5:25pm
Sure I get the 5 O clock shut down .... maybe 10 pips the most... nothing like news releases though. I don't trade the news on a regular so I'm not concerned... Once in a while get caught because I forgot to check for them but that's what my stop is for.... What broker do you use for FX. PM me if you don't want it on the thread...

Quoting Slim Buffett
{quote} I don't know what to tell ya'. That simply hasn't happened to me. Spreads widen after close of NY for a bit (one broker stops trading for a few minutes @ 5pm EST due to previous issues) ) and on holidays, etc., other than 1 or 2 pips at times. Just my experience.
SPC * Swollen PocketZ Crew!
  • #45
  • Feb 5, 2014 5:43pm Feb 5, 2014 5:43pm
Quoting JoeNY
Sure I get the 5 O clock shut down .... maybe 10 pips the most...
That was done a couple of years ago because there was some "weird" spikes with that particular broker
and was not seen with some other broker. Possibly attributed to algo's exploiting low liquidity.
I received a refund on a trade during that period (once upon a time).

Quoting JoeNY
nothing like news releases though.
News releases are no reason to increase spreads. If there are "shitloads" of orders it
might be a reason for "gaps" when your order doesn't get filled at the precise second.

Quoting JoeNY
... What broker do you use for FX. PM me if you don't want it on the thread...
Though I don't want to be accused of promoting some broker it's no big secret. I've posted charts.... etc
US brokers are forex.com and IBFX

Cheers
When the Joker is in the deck.. fear not and play it well
  • #46
  • Feb 5, 2014 5:45pm Feb 5, 2014 5:45pm
Haven't been to FF for a while. From looking at chart on the 1st post I'd say the pull back was profit taking. The exponential drive up was accumulation + stops, accumulation + stops ect and then profits were taken. Not rocket science.
  • #47
  • Feb 5, 2014 5:46pm Feb 5, 2014 5:46pm
Quoting Zappa
TS, the markets just seem to bounce around from liquidity spot to liquidity spot. In the chart you posted, there must have been some been spot that the market had hit at the top. If you look back further in time you will see why it sold off at the high. It falls to a new liquidity spot and reverses again. It is last seen heading north to the next liquidity spot. Understanding liquidity spots is the most powerful tool I have ever come across, but it is something that takes time to get good at.
Perfect an understanding of order flow levels and their dynamics and you have it made. Thats whats going on in the opening post.
The road to pipland is arduous and fraught with challenge.
  • #48
  • Feb 5, 2014 5:48pm Feb 5, 2014 5:48pm
Quoting Slim Buffett
{quote} Though I don't want to be accused of promoting some broker it's no big secret. I've posted charts.... etc US brokers are forex.com and IBFX Cheers
Thanks
SPC * Swollen PocketZ Crew!
  • #49
  • Feb 5, 2014 5:54pm Feb 5, 2014 5:54pm
Quoting Slim Buffett
Possibly attributed to algo's exploiting low liquidity. News releases are no reason to increase spreads. If there are "shitloads" of orders it might be a reason for "gaps" when your order doesn't get filled at the precise second.
It's alien Robots controlling the market...lol

Great theory Slim.

So, Mr Market...

Define GAP from your comments...
How exactly does this differ from a widening spread?

Your entire sentence is contradictory...but, uh...ya, not really surprised by this...

Let's bust it out into simplicity...

Say you were gunna by tickets to Beiber...they sell out at box office and now you have to buy from scalpers...

Samsies.

Get it slimbo?

When the assumed spread price is no longer available, you pay the next available market rate.



Did they kick you out of the rookie section again?
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #50
  • Feb 5, 2014 6:01pm Feb 5, 2014 6:01pm
Quoting Magix
{quote} It's alien Robots controlling the market...lol Great theory Slim. So, Mr Market... Define GAP from your comments... How exactly does this differ from a widening spread? Your entire sentence is contradictory...but, uh...ya, not really surprised by this... Let's bust it out into simplicity... Say you were gunna by tickets to Beiber...they sell out at box office and now you have to buy from scalpers... Samsies. Get it slimbo? When the assumed spread price is no longer available, you pay the next available market rate. Did they kick you...
Magix.... you simply continue to be an idiot. I thought I was on your iggy.
Why couldn't you just be happy with that?

Apparently you would rather make an idiot of yourself..... again !
When the Joker is in the deck.. fear not and play it well
  • #51
  • Feb 5, 2014 6:04pm Feb 5, 2014 6:04pm
Quoting FX-HedgeFund
Never let anyone distract you from the "Why"....as it is just as important as the "How and Where" FX-HedgeFund

For me, figuring out the "why" is how I figure out the "where" as well as the "where to". Having a solid grasp on why a price turns where it turns takes your trading to another level. To trade without it is equivalent to fighting blindfolded. Using past s/r levels, fibs, forks, gann, ma's, etc will only take you so far. That's the one thing that seems to be missing on this forum....logic. Everyone should be asking "why" did it turn where it did. It has nothing to do with fundamentals. The answer is always on the chart, but you need to look at all timeframes. The one thing you will always find is that the market does not let people into big moves easily. There are always tricks to play first, aka stop-running. My guess as to why this happens is that it is not manipulation (I used to think that), but it is just that way the market MUST move. It bounces around from liquidity point to liquidity point. It is too perfect to be manipulated by humans. Its just the way it is, in my opinion.
  • #52
  • Feb 5, 2014 6:07pm Feb 5, 2014 6:07pm
Quoting Slim Buffett
{quote} Magix.... you simply continue to be an idiot. I thought I was on your iggy. Why couldn't you just be happy with that? Apparently you would rather make an idiot of yourself..... again !
I am actually a little embarrassed for you, slim.

Really dude...

Your comment was basically saying...

I could understand if it was orange, but why the hell is it orange?
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #53
  • Feb 5, 2014 6:08pm Feb 5, 2014 6:08pm
Quoting Slim Buffett
{quote} Magix.... you simply continue to be an idiot. I thought I was on your iggy. Why couldn't you just be happy with that? Apparently you would rather make an idiot of yourself..... again !

Ignore him, Slim. Sitting around arguing with an idiot is idiotic in itself. Just shake your head and move on.
  • #54
  • Feb 5, 2014 6:10pm Feb 5, 2014 6:10pm
Quoting Zappa
{quote} For me, figuring out the "why" is how I figure out the "where" as well as the "where to". Having a solid grasp on why a price turns where it turns takes your trading to another level. To trade without it is equivalent to fighting blindfolded. Using past s/r levels, fibs, forks, gann, ma's, etc will only take you so far. That's the one thing that seems to be missing on this forum....logic. Everyone should be asking "why" did it turn where it did. It has nothing to do with fundamentals. The answer is always on the chart, but you need to look...
This is extremely complex and depends on the context. You will have to do the hard yards to get that instinctual grasp of why what is occurring is taking place. It's a bit like riding a bike. Worth the effort as it turns trading into a real skill that has a logic. The stress also falls away. You are on the right track anyways.
The road to pipland is arduous and fraught with challenge.
  • #55
  • Feb 5, 2014 6:14pm Feb 5, 2014 6:14pm
Quoting Zappa
{quote} Ignore him, Slim. Sitting around arguing with an idiot is idiotic in itself. Just shake your head and move on.
I try but I can't help myself..... maybe it's like taking that bad trade or something ??

No... it's more than that. And anyway, I usually have a few minutes so what else to do ?

When the Joker is in the deck.. fear not and play it well
  • #56
  • Feb 5, 2014 6:18pm Feb 5, 2014 6:18pm
Quoting traider
{quote} This is extremely complex and depends on the context. You will have to do the hard yards to get that instinctual grasp of why what is occurring is taking place. It's a bit like riding a bike. Worth the effort as it turns trading into a real skill that has a logic. The stress also falls away. You are on the right track anyways.
YES!! It is VERY challenging, but gets easier with time. The sooner you realize to need to understand these things the better. I've spent over 10 years staring at the markets. That is 10 years of INTENSE screen time. I doubt there's anybody on here that's been trading for 10 years with the screen time I have. I learned all the popular tools out there, as well as some unpopular tools. NOTHING has helped like slowly understand the "why". It has been 2 years focusing on the "why". I have seen great improvements, but there were many set-backs. The good news is you get better and better, but you must learn from every loss. To speed up the learning process, analyze as many markets as possible, everyday.
  • #57
  • Feb 5, 2014 6:27pm Feb 5, 2014 6:27pm
Quoting Zappa
{quote} YES!! It is VERY challenging, but gets easier with time. The sooner you realize to need to understand these things the better. I've spent over 10 years staring at the markets. That is 10 years of INTENSE screen time. I doubt there's anybody on here that's been trading for 10 years with the screen time I have. I learned all the popular tools out there, as well as some unpopular tools. NOTHING has helped like slowly understand the "why". It has been 2 years focusing on the "why". I have seen great improvements, but there were many set-backs....
Try and think outside the box and move away from the traditional methods. Find common themes and build on them. Contemplation and insight is invaluable as it demonstrates that you understand whats occuring dynamically. The process is like peeling an onion. Hard work with intense focus but invaluable. Good luck anyways.
The road to pipland is arduous and fraught with challenge.
  • #58
  • Feb 5, 2014 6:30pm Feb 5, 2014 6:30pm
Quoting Zappa
{quote} Ignore him, Slim. Sitting around arguing with an idiot is idiotic in itself. Just shake your head and move on.
Now wait a second...

Did you actually read the comment you are throwing in with, or just siding with anybody against me?

Perhaps the pair of you should now put your heads together and come up with an explanation as to why GAPS and a Widening spread are 2 different things.

This oughta be good.
Money Can't Buy Happiness. Poverty Can't Buy SHIT! You Choose!
  • #59
  • Feb 5, 2014 6:41pm Feb 5, 2014 6:41pm
Quoting traider
{quote} Try and think outside the box and move away from the traditional methods. Find common themes and build on them. Contemplation and insight is invaluable as it demonstrates that you understand whats occuring dynamically. The process is like peeling an onion. Hard work with intense focus but invaluable. Good luck anyways.
Logic is the ONLY thing I use anymore. Nothing else comes close to its power. And yes, it is like an onion--the process that is. Good luck to you as well. Was nice chatting with you.
  • #60
  • Feb 5, 2014 6:58pm Feb 5, 2014 6:58pm
Quoting Magix
{quote} It's alien Robots controlling the market...lol
I can't believe that you haven't heard of high speed trading algo's !! Geez, you are out there !

Quoting Magix
{quote}Great theory Slim. So, Mr Market... Define GAP from your comments... How exactly does this differ from a widening spread? Your entire sentence is contradictory...but, uh...ya, not really surprised by this... Let's bust it out into simplicity...
If you weren't such an idiot it isn't difficult. A widening spread does not equal a gap unless the "gap"
is due to the broker being unable to fulfill your order. There may well be a gap in the time lapse of
your order fulfillment but it's not a "real" gap.
[/quote]Say you were gunna by tickets to Beiber...they sell out at box office and now you have to buy from scalpers... Samsies. Get it slimbo? When the assumed spread price is no longer available, you pay the next available market rate. Did they kick you out of the rookie section again?[/quote]


That's only when you didn't get your "tickets" at the guaranteed price. There wasn't a "gap" there. It was
simply foreseeing the great demand as price went up. Not a gap
When the Joker is in the deck.. fear not and play it well
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