It is just MMs price manipulation to accumulate more short orders. With still about a day before NFP there is lots of time to accumulate more short orders, now back at higher prices. The MMs sucked in a lot of longs and stopped out a lot of shorts, all to get liquidity for their own shorts. It is as simple as that. This is a good example of why risk to reward ratio trading is a flawed concept that doesn't work. Spikes like this are a common way for the MMs to load up for the same short trade that so many others are in. And a spike like this does not invalidate the trade, no matter that SLs are hit. It validates the trade and invalidates the use of SLs the way most use SLs!
- #65,161
- Feb 6, 2014 8:07am Feb 6, 2014 8:07am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #65,163
- Feb 6, 2014 8:09am Feb 6, 2014 8:09am
- | Commercial User | Joined Mar 2008 | 9,069 Posts
Gu look bullish to me.. nice wondering ard dragon.. Next 30 mins.. Euro news should move..it ... Up or Down..Sonic {image}
Got be a mega move.. today or after NFP tomorrow..
Gonna be Fun..
Sonic
- #65,164
- Feb 6, 2014 8:12am Feb 6, 2014 8:12am
- Joined Jan 2013 | Status: Trader | 1,107 Posts
whats with the major EURO spike?
[highlight=rgba(255, 255, 255, 0)]
I'm long on EU... This, in my opinion, is the last possible place where price should surge up. If not, it will fall under bull flag and most possibly continue down. In that case I'm swithing to bear mindset and take loss like a man{image} {image} Reasons have build last week already. {image} {image} {image}
I know the secret...
- #65,165
- Feb 6, 2014 8:17am Feb 6, 2014 8:17am
- Joined Feb 2011 | Status: Trader | 1,825 Posts
EurGbp long tp rdh , for pin bar {image}
- #65,166
- Feb 6, 2014 8:18am Feb 6, 2014 8:18am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
- #65,167
- Feb 6, 2014 8:22am Feb 6, 2014 8:22am
{quote} EU: It is just MMs price manipulation to accumulate more short orders. With still about a day before NFP there is lots of time to accumulate more short orders, now back at higher prices. The MMs sucked in a lot of longs and stopped out a lot of shorts, all to get liquidity for their own shorts. It is as simple as that. This is a good example of why risk to reward ratio trading is a flawed concept that doesn't work. Spikes like this are a common way for the MMs to load up for the same short trade that so many others are in. And a spike like...
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- #65,168
- Feb 6, 2014 8:26am Feb 6, 2014 8:26am
- Joined Feb 2011 | Status: Trader | 1,825 Posts
Long Gbp Usd , Scalp only {image}
- #65,170
- Feb 6, 2014 8:57am Feb 6, 2014 8:57am
- Joined Feb 2011 | Status: Trader | 1,825 Posts
Usd Jpy long , for volume
- #65,172
- Feb 6, 2014 9:14am Feb 6, 2014 9:14am
- Joined Feb 2011 | Status: Trader | 1,825 Posts
Gold long , climax vol , imo
- #65,173
- Edited 9:52am Feb 6, 2014 9:17am | Edited 9:52am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
{quote} wouldnt it affect their existing shorts? how are they so confident about the NFP being good news???
Tomorrow, the MMs could spike this up thru RWH and then pull the rug,......down she goes to make new lows as the start of a Bear Run for Profits gets underway.
We cannot know how price will move next, nor when trends will reverse, but we can know what the MMs are doing. And PVSRA has been consistently indicating the MMs have been more focused on accumulating shorts at highs than they have been at accumulating longs at lows. These up/down moves within the range are just warm-ups for the Big Event (imho).
We can look at a chart like this in retrospect and see better what might be going on. What we have to do when considering entering a trade is to have eyes that are trained to see these possible moves in advance, because whether entering a long trade or a short trade, big price swings can happen. And they don't automatically invalidate the trade. They might, in fact, validate the trade. Such trained eyes will give the trader a better perspective on SL placement, too, and what size trade they can put on based on how far away a SL should be, so as to not stress their account when such spikes occur (imho).
In a nutshell, it comes down to either trade this way with a trade running possibly for many days and possibly enduring large swings, or do quick in-out trades to grab 10-30 pips and be done.
Oh, and as regards how they can be so confident ahead of NFP news is because they already know the essence of what is to get released. There are no regulations against "insider trading" in the currency market, and the MMs and big liquidity providing banks pretty much always know in advance the essence of anything important that is to be released. The MMs do not decide what to do after releases, they scheme in advance of them!
Time will tell how this moves next,
-tah
- #65,175
- Feb 6, 2014 9:44am Feb 6, 2014 9:44am
- | Commercial User | Joined Mar 2008 | 9,069 Posts
Gu look bullish to me.. nice wondering ard dragon.. Next 30 mins.. Euro news should move..it ... Up or Down..
3 hrs and 60 pips later..
Told Cha//
Tp1 hit
I gonna let it ride...
Inserted Video
Sonc
- #65,176
- Feb 6, 2014 9:44am Feb 6, 2014 9:44am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
{quote} Just to add to what tah said, it's also important to remember that since MMs are the ones controlling price, they definitely don't mind holding onto a couple short orders in the red for a few days. All professional traders don't mind seeing negative numbers before profits. Warren Buffet is a great example of this in the stock market, buying the whole way down during the 2009 crash. It's just a processing of sowing seeds that you know will pay off later down the road.
I want more brain power!
- #65,179
- Feb 6, 2014 9:58am Feb 6, 2014 9:58am
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
{quote} And make sure your entries are sized in such a way your margin does not get stressed
If PVSRA says Bears, and if the down trend is still young (not a lot of pips down from the top), fine. But if you are only looking at notable volumes at highs, and ignoring notable volumes at lows and assuming bears when the trend is long in the tooth and the BELL MMs might be shifting to Bulls, you could be getting yourself into a bad trade.
