- #78,606
- Edited 8:03am Jan 22, 2015 7:07am | Edited 8:03am
ok, that is it:
Next stage is:
Be the way, Hello everybody! I am a new user on this thread. It is a pure pleasure to be here with you guys. Amazing work has been done here! Thank you all sincerely!
Sonicdeejay & Traderathome, thank you so much!
GOOD LUCK! CHIN UP!
Matthew.
Next stage is:
Be the way, Hello everybody! I am a new user on this thread. It is a pure pleasure to be here with you guys. Amazing work has been done here! Thank you all sincerely!
Sonicdeejay & Traderathome, thank you so much!
GOOD LUCK! CHIN UP!
Matthew.
- #78,609
- Jan 22, 2015 8:08am Jan 22, 2015 8:08am
Even as i usually avoid trading during big releases, this time i failed to resist to put my hand in the cookie jar (risk factor 3%), looking for good long setup with bull MMs now {image}
Update:
I put a Buy limit @ 1.14, good till at least 1.145 Retracement
- #78,610
- Jan 22, 2015 11:36am Jan 22, 2015 11:36am
- Joined Sep 2013 | Status: Trade what you see... | 224 Posts
EURUSD
Forget the news, read the chart. Never hesitated to jump. The rule always simply, cut the red, dance with dragon day to day. Follow, not betting or guessing. Accept the fact, not hoping it reverse. Single entry only, red or green. No average in red, but green. If you soniker, did that rule to the letter, the fruit of market ready to be harvested. I said dance with dragon, but not made it angry. Once dragon goes angry, you dead, account buried and forgotten.
GBPUSD report from early January, 2015
The rule still simply, dance the with dragon on m15, no big drawdown allowed, 1340pips bagged home positively, 20% accounts growth.
I hope, it gives you all enough example, to dance with dragon day to day, and follow what the MM wants, not counter it. Of course, if you decided to counter the MM, it's your money, it's your risk. Forex or trading commodities, need extra courage to accept the red, but small. Those who able to booked the best red, will prosper. But those who unable to booked the best red, will busted for sure.
Regards,
-GP-
Forget the news, read the chart. Never hesitated to jump. The rule always simply, cut the red, dance with dragon day to day. Follow, not betting or guessing. Accept the fact, not hoping it reverse. Single entry only, red or green. No average in red, but green. If you soniker, did that rule to the letter, the fruit of market ready to be harvested. I said dance with dragon, but not made it angry. Once dragon goes angry, you dead, account buried and forgotten.
GBPUSD report from early January, 2015
The rule still simply, dance the with dragon on m15, no big drawdown allowed, 1340pips bagged home positively, 20% accounts growth.
I hope, it gives you all enough example, to dance with dragon day to day, and follow what the MM wants, not counter it. Of course, if you decided to counter the MM, it's your money, it's your risk. Forex or trading commodities, need extra courage to accept the red, but small. Those who able to booked the best red, will prosper. But those who unable to booked the best red, will busted for sure.
Regards,
-GP-
It's all started from page one
- #78,611
- Edited 1:29pm Jan 22, 2015 12:36pm | Edited 1:29pm
- | Joined Jan 2015 | Status: Trader | 1 Post
Can some one tell me If I am wrong with my analysis of EUR/USD as to me it looks the MMs are bullish as the volume pics up at the lows on this chart as seen in the circles.
Revised Image As Per TAH - There was no actual trade taken as I missed the point I would have liked to have entered but that white line was where I would have entered Long. My question was more based on my volume analysis thinking the MM's will be pushing this long. So far it has been dropping pretty steadily. Am I wrong in my thaughts and if so can you point out what I am missing. Thanks and sorry the the non compliance post I didnt go back to read post 1 before I posted. I have been reading through all the material for a while now.
Revised Image As Per TAH - There was no actual trade taken as I missed the point I would have liked to have entered but that white line was where I would have entered Long. My question was more based on my volume analysis thinking the MM's will be pushing this long. So far it has been dropping pretty steadily. Am I wrong in my thaughts and if so can you point out what I am missing. Thanks and sorry the the non compliance post I didnt go back to read post 1 before I posted. I have been reading through all the material for a while now.
- #78,614
- Edited 10:40pm Jan 22, 2015 8:45pm | Edited 10:40pm
- Joined Mar 2008 | Status: PVSRA with Traderathome | 23,552 Posts
When the Robber Banks "Test" Levels.....
In various literature on trading you will come across statements about price "testing" support/resistance, or "testing" demand/supply, as if these statements were somehow explanatory as to why price "went back" to an apparent breakout level. And we often see on our charts after price makes a significant high or low on notable volume, that the price will later head back towards the same area - possibly even making a double top/bottom - also with notable volume.
I have long wondered just what goes on when the Robber Bank MMs are "testing". And I have long wondered when price makes a significant level on notable volume, just who in the world is acting as counter-party to all the apparent trading indicated by the notable volume, because after price has made a truly great run and is culminating at a significant level with notable volume it is understandable to question what idiots are functioning as counter-parties when the "party" is so obviously over!
I have now a theory as to what happens in these situations mentioned.
The theory about "testing" goes like this. When the MMs break out the price, but then go back to "test" that breakout level, what they want to know before they proceed with the real price drive is if there remains significant interference to such a move. For example, suppose the breakout was long and then the MMs pulled the price back down to the breakout area for their "test of support". What the MMs want to know is if their are a lot of shorters waiting in the wings to submit their short orders, which could interfere with the MMs plan to drive the price upwards. So, what the MMs do when they get the price back down to the breakout area is to execute a lot of nano-lot short trades (one cent each) to inch the price lower to see if they can draw in those shorts, and to see how substantial they are. If the "test" does not draw in shorts then the MMs know there is diminished interference to them driving the price up, and as they start doing so they simply close their batch of "test shorts" orders. These were small and so no matter how many there were, the loss on them is insignificant to the MMs.
It follows that the MMs do something similar when they have the price at a significant level after a great run, which explains why there can be notable volume/count of trades. Think about it. The MMs can "book" trades - buying/selling to themselves - in unregulated amounts, perhaps at one cent per trade (maybe less!) in which case they could intersperse 10,000 such trades while settling any imbalance at level to level. For example, suppose price has reach a significant high. The MMs want to push the price even higher to see if there are still longs around that could interfere with a reversal. They can afford to close those small long trades lower, since 10,000 of them could be worth only $100 or less!
We need to remember that MT4 forex "volume" is really only the count of the number of trades, not the actual volume of currency. So, notable volume when "testing" SR, or at the end of a big run as the MMs push the price even further, does not necessarily mean a lot of currency is involved. It is far more likely that the MMs are simply swamping the market with miniscule trades to see if they can ferret out any interference to them running the price back the other way again. The counter-party to "all that volume" at key levels is probably the MMs themselves, using thousands of trades of meaningless amounts - buying/selling to themselves - all done HFT fashion by computer, in order to see which way the rest of the market is prone to go. The immediate future of price direction is likely to be based on the results the MMs get. Only they know these results, which is why we retail traders should wait and see what price direction follows, and wait for our next setup.
All of this does not negate the importance of notable "volume". It helps to explain it. Remember this, we are to use previous notable volumes to help evaluate a current setup, not use current notable volume to trade before a setup!
-tah
In various literature on trading you will come across statements about price "testing" support/resistance, or "testing" demand/supply, as if these statements were somehow explanatory as to why price "went back" to an apparent breakout level. And we often see on our charts after price makes a significant high or low on notable volume, that the price will later head back towards the same area - possibly even making a double top/bottom - also with notable volume.
I have long wondered just what goes on when the Robber Bank MMs are "testing". And I have long wondered when price makes a significant level on notable volume, just who in the world is acting as counter-party to all the apparent trading indicated by the notable volume, because after price has made a truly great run and is culminating at a significant level with notable volume it is understandable to question what idiots are functioning as counter-parties when the "party" is so obviously over!
I have now a theory as to what happens in these situations mentioned.
The theory about "testing" goes like this. When the MMs break out the price, but then go back to "test" that breakout level, what they want to know before they proceed with the real price drive is if there remains significant interference to such a move. For example, suppose the breakout was long and then the MMs pulled the price back down to the breakout area for their "test of support". What the MMs want to know is if their are a lot of shorters waiting in the wings to submit their short orders, which could interfere with the MMs plan to drive the price upwards. So, what the MMs do when they get the price back down to the breakout area is to execute a lot of nano-lot short trades (one cent each) to inch the price lower to see if they can draw in those shorts, and to see how substantial they are. If the "test" does not draw in shorts then the MMs know there is diminished interference to them driving the price up, and as they start doing so they simply close their batch of "test shorts" orders. These were small and so no matter how many there were, the loss on them is insignificant to the MMs.
It follows that the MMs do something similar when they have the price at a significant level after a great run, which explains why there can be notable volume/count of trades. Think about it. The MMs can "book" trades - buying/selling to themselves - in unregulated amounts, perhaps at one cent per trade (maybe less!) in which case they could intersperse 10,000 such trades while settling any imbalance at level to level. For example, suppose price has reach a significant high. The MMs want to push the price even higher to see if there are still longs around that could interfere with a reversal. They can afford to close those small long trades lower, since 10,000 of them could be worth only $100 or less!
We need to remember that MT4 forex "volume" is really only the count of the number of trades, not the actual volume of currency. So, notable volume when "testing" SR, or at the end of a big run as the MMs push the price even further, does not necessarily mean a lot of currency is involved. It is far more likely that the MMs are simply swamping the market with miniscule trades to see if they can ferret out any interference to them running the price back the other way again. The counter-party to "all that volume" at key levels is probably the MMs themselves, using thousands of trades of meaningless amounts - buying/selling to themselves - all done HFT fashion by computer, in order to see which way the rest of the market is prone to go. The immediate future of price direction is likely to be based on the results the MMs get. Only they know these results, which is why we retail traders should wait and see what price direction follows, and wait for our next setup.
All of this does not negate the importance of notable "volume". It helps to explain it. Remember this, we are to use previous notable volumes to help evaluate a current setup, not use current notable volume to trade before a setup!
-tah
- #78,617
- Jan 23, 2015 1:15am Jan 23, 2015 1:15am
When the Robber Banks "Test" Levels..... In various literature on trading you will come across statements about price "testing" support/resistance, or "testing" demand/supply, as if these statements were somehow explanatory as to why price "went back" to an apparent breakout level. And we often see on our charts after price makes a significant high or low on notable volume, that the price will later head back towards the same area - possibly even making a double top/bottom - also with notable volume. I have long wondered just what goes on when the...
- #78,619
- Edited 6:29am Jan 23, 2015 5:56am | Edited 6:29am
- Joined Jan 2015 | Status: Trader | 1,460 Posts
Daily is down, yesterdays action is a little mixed so this trade is a kind of risky. {image}
No TP set, just have to wait and see what PA does.
Edit:
Could have been better.
