{quote} It's only 3rd day of the month, who knows? There's even slight chance we might see [email protected] again this month, who knows?!
Cable Update (GBPUSD)
- #423,203
- Feb 3, 2016 4:20pm Feb 3, 2016 4:20pm
- Joined Dec 2013 | Status: Trader | 19,815 Posts
Sell on pound dollar. 146 {image}
- #423,207
- Feb 3, 2016 5:43pm Feb 3, 2016 5:43pm
LoL... Yea, maybe some days there is real "momentum" in the literal meaning of the word.
Actually, it's "positive feedback" in a situation like that, but that's just semantics!
Actually, it's "positive feedback" in a situation like that, but that's just semantics!
don't fight the momentum of the daylol {quote}
"Don't fear a bubble until it starts to burst."
- #423,208
- Feb 3, 2016 6:13pm Feb 3, 2016 6:13pm
I see people with all these exotic resistance formulas... Pivot formulas and other similar resistance formulas do not work in Forex. The only really solid resistance in the market is located at the swing highs and swing lows. It's kind of a Paradoxical resistance though, because when price pushes into it, either the market stops dead after a little ways, or it explodes in a breakout as it clips buy stop pockets just above and/or people start to flood into the breakout.
You have to use your experience to figure out if price is going to stop or continue to run once it penetrates the level.
There is some other resistance though... Price has a tendency to regress once it gets too far from mean measured in average true range or averaged standard deviations of movement.
You have to use your experience to figure out if price is going to stop or continue to run once it penetrates the level.
There is some other resistance though... Price has a tendency to regress once it gets too far from mean measured in average true range or averaged standard deviations of movement.
"Don't fear a bubble until it starts to burst."
- #423,215
- Feb 3, 2016 7:12pm Feb 3, 2016 7:12pm
And, here is how the structural and psychological factors at the even numbers and options strikes can be proven... Do a statistical analysis of the order book analyzing order density at different numbers, and you will come up with a anomalously high correlation of high order density at even numbers, a weaker correlation at the fifties, and a very weak to nonexistent order density anomaly at the 75/25's.
Even though this is just the Oanda order book, you will see the same pattern across all brokers, and even the interbank market if you can get the data from a bank.
Even though this is just the Oanda order book, you will see the same pattern across all brokers, and even the interbank market if you can get the data from a bank.
Actually, a price grid isn't arbitrary if it's at the quarters and evens. Those are options strike prices. Plus, all the orders that go through and are build up around those levels causes real effects. {quote}
"Don't fear a bubble until it starts to burst."
- #423,218
- Edited 7:42pm Feb 3, 2016 7:29pm | Edited 7:42pm
LoL... Yea, maybe some days there is real "momentum" in the literal meaning of the word. Actually, it's "positive feedback" in a situation like that, but that's just semantics! {quote}
Here is a great example of positive feedback tail events... Bitcoin! Real world positive feedback like a bank run is usually exponential, in markets exponential positive feedback (price to price feedback) can usually only be detected with volume and price. Price itself doesn't usually go fully exponential, it just accelerates.
For those who don't know what positive feedback is... Take a microphone hooked up to a speaker and a amp, and move the microphone near the speaker. That is positive feedback.
That is why counter-trending in many situations can be deadly. The market can exponentially ramp farther than you can believe, and there is no way to predict the exact end of the spike because it's so fast and violent.That is what you get when one person buys, then the increase in price causes another couple people to buy, then that increase in price causes a few more people to buy... Price to price feedback just snowballs!
"Don't fear a bubble until it starts to burst."