Two new articles on the site, turning a small account into a big one part one and two
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I think it would make sense for the banks and whatever to send the market lower before the FOMC announcement.
If they do this, then when the announcement comes out they will already have a portion of traders in the market ready to lose money, at the very least i think the market will either stop at this trend line (showing signs of rejection atm) or move lower to the boundary of the range.
This drop at the moment is accomplishing two things:
1. Its making anybody who brought on the up move lose money, essentially closing their trades, this includes the breakout traders who would of probably brought when they saw the market break the highs earlier today.
2. The large bearish candles are enticing people to place sell trades just because they see the market moving lower quickly (fear of missing out).
3. On the daily chart the current candle is beginning to look like a pin bar, which means price action traders operating off the daily chart are likely to place sell trades.
If the FOMC comes out and sends the market lower i would expect it to stop around 1.08700 -1.0800
By the time the market has moved lower into these prices most of the traders on the time frames below 1 hour will of identified the movement as a new trend, so they will all start selling, which will accumulate more money for the bank traders to take of the retail traders.
Basically don the more traders that are going to lose money the larger the resulting movement in the market will be.
Examples: any market crash ever, CHF Crash, 2008, 1987 , tech bubble.
If they do this, then when the announcement comes out they will already have a portion of traders in the market ready to lose money, at the very least i think the market will either stop at this trend line (showing signs of rejection atm) or move lower to the boundary of the range.
This drop at the moment is accomplishing two things:
1. Its making anybody who brought on the up move lose money, essentially closing their trades, this includes the breakout traders who would of probably brought when they saw the market break the highs earlier today.
2. The large bearish candles are enticing people to place sell trades just because they see the market moving lower quickly (fear of missing out).
3. On the daily chart the current candle is beginning to look like a pin bar, which means price action traders operating off the daily chart are likely to place sell trades.
If the FOMC comes out and sends the market lower i would expect it to stop around 1.08700 -1.0800
By the time the market has moved lower into these prices most of the traders on the time frames below 1 hour will of identified the movement as a new trend, so they will all start selling, which will accumulate more money for the bank traders to take of the retail traders.
Basically don the more traders that are going to lose money the larger the resulting movement in the market will be.
Examples: any market crash ever, CHF Crash, 2008, 1987 , tech bubble.
USD/JPY Is This The Beginning ? See Post 14
I think there will be a small pullback before the fist big move gets underway, lot of traders will be entering sell positions right now, if the market pulls back it will force them to close at a loss which will put buy orders into the market allowing the institutions to place more of their own sell positions.
I think there will be a small pullback before the fist big move gets underway, lot of traders will be entering sell positions right now, if the market pulls back it will force them to close at a loss which will put buy orders into the market allowing the institutions to place more of their own sell positions.
