40-100 pips per day LIVE TRADING

[Tess]

Originally Posted by Tess

Notice now that price has arrived at this (prev) s&r zone up here @ 2.0265-70 region, it's testing out the supply?

Take a looky across on your large hourly chart & you'll see a trench between 2.1080 & 2.0270 going back to late July where prices got jostled around a ways.

Lets see how this second attempt stacks up here abouts.

If it gets repelled, we got the lower initial line @ 2.0180 to maybe shoulder the surge back. If not, I guess prices will break thru & maybe re-test this area to check on the demand before taking a run @ 2.0390-400.

We'll see huh?

Thank you very much for your kind comments daydreamer, they're much appreciated. It was nice chatting with you & the other guy's y'day in the chat-room. Hopefully (& time permitting) we can hook up in there again in the not too distant

I'll leave you with today's events. I wouldn't really put too much emphasis on this afternoons push thru this upper ceiling supply line until it's properly tested early into next week.

Sure, it's busted thru & re-tested as expected, but the stiffer test probably awaits! Hopefully you can now use this little soiree as a base to maybe fill your pockets next week!!

Watch out for any aggressive selling thru this upper tier & follow thru (if it transpires) thru the 2.0165-80 floor, that wouldn't bode well for Cable at all.

Should they decide to consolidate this step up here early next week, then we're good to trot to the next upper tier I mentioned y'day!!

Good hunting, & stay safe out there!

[daydreamer65]

Hi Tess no problem you make a thick "brummie" very happy.

Also if your still around would you explain this to me.

I am not sure how much steam is left in this and there is often a reversal late on a Friday as traders square their positions ahead of the weekend.

I would ask Tony but I sure he is still catching some ZZZZZZZ.

[Tess]

What Tony's referring to daydreamer is the fact that once an aggressive tranche of one-way trade bias (shorts or longs) begins to get pared off or encashed, it naturally tips prices back in the opposite direction.

For example: Look at today's chart of GBPJPY. Following the NFP release, aggressive speculators shoved price down hard to the 229.0 round number base (an hourly s&r zone).

Once these shorts begin "squaring off their positions" or buying back their shorts, it causes a backdraft. This usually results in a temporary wave back in the opposite direction to the aggressive trending bias.

Occasionally, these temporary waves back attract demand from value chasers & we experience an equally strong move back up the ladder if the level turns out to be a strong area of demand.

Otherwise, the speculators again attempt to drive prices lower (once they've banked their initial profits) & look to larger tranches of money to support the directional flows.

These zones then become the subject of (sometimes) fierce fulcrum levels between Bulls & Bears - resulting in prolonged consolidation/range clips.

[Tess]

To add:

You'll often notice when prices get shoved aggressively one way or the other, you'll witness a small pullback or small reversal? If price merely dies away & stretches out into a lethargic consolidation, this can generally be perceived as a "testing base" by the opposing camps (Bulls/Bears).

It's a stand-off, where one camp is teasing the other into making the first move

Whoever sneezes first, loses the ground!! Realistically, what's actually occuring is a slow, steady build up of either supply or demand.

If the resting zone (in this instance 229.0 on GBPJPY) proves a non-event for the demand camp, then prices will continue to fall. If 229.0 proves a reasonably strong area of demand & traders find good value here, prices will move back up the ladder.

Nothing scientific or secret about the activity at all...merely the forces of supply & demand. Which is why these previous zones of s&r are witnessed on the larger timeframe charts!

[daydreamer65]

Thanks again Tess, that gives me something to think about!!!!

It may have sunk in by the time you come back from Cyprus.

Now to settle down & watch the opening game of
the rugby world cup.

[tonymand]

Originally Posted by Tess

Amen to your highlighted comments

And a smile as I read the lower comments!!

Quite an interesting week, both in the markets & on these 2 (40-100pip) threads. I very much enjoy reading your posts & interacting on here. It's refreshing to bat strategies & idea's around without ulterior (sales ploys) motives & ridiculously impractical methods.

I'm on a break next week (fly out late Sunday) from the trading screens....chilling out on a hot Cypriot beach & no doubt consuming copious amounts of chilled European beer!

Hope next week continues to print the golden inside bars & the stoch's play ball as they should

If I don't cross paths over the w/end, enjoy the trading next week everyone!

Hi Tess. Just want to add my thanks to you to those from Daydreamer. I hope you have a great trip to Cyprus but I shall miss you next week as I have really come to look forward to your posts. You have a fantastic grasp of what is really happening behind the chart and a gift for describing that clearly. I have printed out the series of posts you did on supply and demand areas and have that permanently next to me at the computer and I suggest others do the same. It so easy in the heat of the battle looking at abstract candle patterns to forget that they are representative of people and what they are doing and that our job is to use that information to decide what they are going to do next on the balance of probabilities

[daydreamer65]

I have printed out the series of posts you did on supply and demand areas and have that permanently next to me at the computer and I suggest others do the same.

Hi Tony would you point me in the right direction to these please.

TIA.

Edit sorry Tony forget that request I've found them, used my
own advise & did some research, ie searched back through
Tess' posts. :lmao:

Yep you are also correct they are very useful posts.

[tonymand]

Originally Posted by daydreamer65

Hi Tony would you point me in the right direction to these please.

TIA.

Edit sorry Tony forget that request I've found them, used my
own advise & did some research, ie searched back through
Tess' posts. :lmao:

Excellent Daydreamer, I think you will find them well worthwhile

[daydreamer65]

Yep you are also correct they are very useful posts.

My problem was the terms supply & demand but I did really know the answer
support & resistance.

As I have stated previously the "language" of Tess & your posts
does confuse me sometimes, but that is my failing not yours,
just needs some work on my part to understand the "language" of
the trader.

I in fact have an email everday from a site I subscribed to some
time ago & if I can understand half of it I feel pleased, but now it is
all starting to come into focus.

An analogy is I have a mate whos father is Glaswegian (Scottish) &
for years when I spoke to him I used to just nod & shake my head
hopefully in the correct places, because I could not understand a word he said.

It wasn't until I spent a weekend in Glasgow listening to the locals
speaking that it all suddenly became clear, now I can understand
my mates' father perfectly. :lmao:


I edited my post because I wasn't sure whether you would be
awake or online.

[tonymand]

Originally Posted by daydreamer65

Yep you are also correct they are very useful posts.

My problem was the terms supply & demand but I did really know the answer
support & resistance.

As I have stated previously the "language" of Tess & your posts
does confuse me sometimes, but that is my failing not yours,
just needs some work on my part to understand the "language" of
the trader.

I in fact have an email everday from a site I subscribed to some
time ago & if I can understand half of it I feel pleased, but now it is
all starting to come into focus.

An analogy is I have a mate whos father is Glaswegian (Scottish) &
for years when I spoke to him I used to just nod & shake my head
hopefully in the correct places, because I could not understand a word he said.

It wasn't until I spent a weekend in Glasgow listening to the locals
speaking that it all suddenly became clear, now I can understand
my mates' father perfectly. :lmao:


I edited my post because I wasn't sure whether you would be
awake or online.

Yes I think its like any profession it has its own jargon and sometimes many terms meaning the same thing. Of course after awhile you dont even realise that you are using jargon. I must say I like supply and demand because that again reminds you its people not abstract lines on a page. I will often think like that during a trade. For instance on Friday night my analogy was that with a desperate emotional crowd all wanting to get on the right side of the move it was a bit like a jilted lover. They can easily turn on you, be unpredictable and downright dangerous. That was in stark contrast to the mornings trade. Doing this helps to remind me I am trading against people very keen to take my money off me and in the case of last nights trade meant keeping my wits about me at all times!