When I take a look at the daily bar it seems it could go more up and down (with longer shadows) and so I take the given market probability and wait with these scalping trades, which continue to be more & more swinging trades.
FXcube
FXcube
- #86
- Aug 18, 2014 7:00am Aug 18, 2014 7:00am
- Joined Nov 2009 | Status: Trader | 27,245 Posts
{quote} stopped out -5 pips, -1%. Done scalping for the day..
FXcube
- #96
- Aug 18, 2014 8:05am Aug 18, 2014 8:05am
{quote} Hello PrymeTyme, I like your examples. Looking at everything and making an informed analysis is definitely a good idea. I think my question here is.... in your last two examples on the 5 minute charts, you show, of course, two possible scenarios. One is long and the other possibility is short. Fair enough. But the clues to showing which one will take place must be determined in real time, based on what the market does next. Whether the breakout then occurs to the upside or the downside. So.... it seems to me that those clues will not happen...
HI Price!
you are right , decisons and determining ones entry / management has to be done on realtime! , but one needs to have a "gameplan" at hands..
u need to know what to lookout for in order to take action or not , based on ones plan etc... and ofcourse how the market plays out .. as we all know anything
can happen
But clues in waht direction the market likely takes place.can also be seen on higher TFs , they do show up... but in a larger scale thou..
the point is it is not obsolete to draw in higher TFs Support/ resistance , etc.. u need to know where price is in the bigger picture .. talking about Odds in your favour etc..
as if we are trading @ a weekly support for example.. u should be swift in scratching a short which doesent play out.. or u can give price a lil more room when long etc..
of course when one scalps the 1min chart (as i do ), u will have several long or short trades on a day.. even if u would trade against the bigger picture then..
but that doesent mather as u should trade only what u see , and not an analysis.. ie be biased the whole day long cause of a weekly downtrend.. etc. and only look for shorts..
the interresting thing is , all small timeframe traders trade against each other , till price attracts longtimeframe traders .. where then short time traders trade against longtime traders.. whereas the favour is in the longtimeers.. due to several reasons.. like .. deeper pockets .. etc.. they dont get shaken out if the market moves some pips against their position.. whereas a short time trader will likely puke sooner if the market moves some points against them..
price is advertising istelf all the time .. to fasciliate a trade .. based on price + time = value .. .. like fair price , unfair price etc..
so if price moves towards a prioce level where it attracts Big TF traders.. either beacuse they seem to have a fair price now to take action (either way)
or we see a rejection as of an unfair value.. (either unfairhigh or unfairlow) .. triggered by fullfilled or unfullfilled expectations, etc.. .. u will see an action nevertheless..
pretty interresting topic u put up there!.. but all in all u just have to focus on price and like u said in realtime.. but having a game plan at hands+
a roadmap at hands.. will propell u in a better position right form the start, vs. the unprepared
The Market seeks balance... (an excerpt of markets and marketlogic)
In balancing itself, the market focuses on a dominant set or single
concern or news item -- whether real or imagined -- and
neutralizes that in the very short run by offering a range of prices
in order to locate an area which faci litates trade. In doing so, the market
makes the situati on f air to both si des in the closest timeframe.
C) Once balance is found, the marketplace will continue to trade in
this fair area until another influence from either the immediate or
longer term timeframe enters and upsets the balance, shifting to a
new price area. This new balance can be changed by a new set of
concerns or participants becoming active. This process can be
continuous or opposite to the initial dominant conccrn in nature.
In the short run, this process is rapid and volatile.
I) Thus, the dominant conecrn usually motivates the short
timeframe participants to change the price to creatc fairness.
2) The dominant concern usually does not motivate the long
timeframe participant. He is often motivatcd to takc thc "fair
price area" as a markct-createn opportunity or pricc excess in
his timeframe. In other words, the activity of the longer
timeframe may upset the balance created in the short term.
D) The market provides a range of time-price opportunit'ies on which
part i c i pants can act. Their action or inaction determines the
structure of the marketplace. The market rotates in order to bring
i n i nvolvement of all timeframes and facilitate trade. The price
area most accepted is the price area most often used, which
therefore is the price area which facilitates trade, which is
accepted as value.
E) The market will continuously offer various time-price
opportunit i es to reassure this activity.
..............
- #99
- Edited 6:35pm Aug 18, 2014 6:08pm | Edited 6:35pm
- Joined Nov 2009 | Status: Trader | 27,245 Posts
