The Forex Store. - Page 5

carlybonner · #41 (**permalink**) 11-21-2009, 01:58 AM

Quote:

Originally Posted by xtraction

Did I answer your questions?

Yes you did, thank you.

Quote:

What I look for is buyers buying. Specifically, I look at the lower wicks of 2 candles. There are only 2 candles that matter.

What to remember is price above previous low, buyers buying and price below previous low, buyers are not buying.

Ok, this I get.
In your case, you’re using the weekly candles as your representation of an acceptable buying opportunity?

So, am I right in assuming that in your example of the usd/cad pair, you were waiting to observe the reaction of buyers as price approached the 1.0415 area at the beginning of this weeks action, before deciding to get involved?

Obviously, prices failed to tempt/attract buyers during week commencing Nov 9, but apparently did so as prices slipped down to check out the prior weeks low ticks, subsequently encouraging buyers during the New York session of Monday 16.

If indeed you were a buyer, or were considering a purchase, where exactly would you (normally) be looking to step in?
Again, you mention the significance of weekly levels, including the opening ticks, I assume in order to test the resolve of (potential) buyers, the most obvious place to begin buying their goods would be as close as comfortably possible to the lows of that prior weeks candle.

That would allow sensible risk with sufficient potential upside to gauge participation of likeminded bargain hunters – from a weekly candle perspective.

xtraction · #42 (**permalink**) 11-21-2009, 04:07 PM

Quote:

Originally Posted by carlybonner

Yes you did, thank you.

Ok, this I get.
In your case, you’re using the weekly candles as your representation of an acceptable buying opportunity?

So, am I right in assuming that in your example of the usd/cad pair, you were waiting to observe the reaction of buyers as price approached the 1.0415 area at the beginning of this weeks action, before deciding to get involved?

Obviously, prices failed to tempt/attract buyers during week commencing Nov 9, but apparently did so as prices slipped down to check out the prior weeks low ticks, subsequently encouraging buyers during the New York session of Monday 16.

If indeed you were a buyer, or were considering a purchase, where exactly would you (normally) be looking to step in?
Again, you mention the significance of weekly levels, including the opening ticks, I assume in order to test the resolve of (potential) buyers, the most obvious place to begin buying their goods would be as close as comfortably possible to the lows of that prior weeks candle.

That would allow sensible risk with sufficient potential upside to gauge participation of likeminded bargain hunters – from a weekly candle perspective.

Wasn't that the question that was just answered?

Quote:

What I look for is buyers buying. Specifically, I look at the lower wicks of 2 candles. There are only 2 candles that matter. The previous candle and the current candle. If price drops below the low of the previous candle, only 2 things can happen to price: 1) price remains below the low or 2) price rises back above the low. It doesn't take anything other than your own two eyes to recognize if the buyers are buying or not. That's why my charts look so sparse and boring. I rely on what price is doing. If price does not drop below the low of the previous candle, then the buyers are buying.

How can this be stated differently? If price is going up, the buyers are buying. If price goes down and comes back up, the buyers are buying. If price is not going down, the buyers are buying. If it appears that this is redundant and stating the obvious, it's because it is stating what should be obvious when you look at the chart. Trading is "obviously" simple.