Well if you ask a Doctor or anyone else who you mentioned, I am pretty sure each one of them had to read a book or attend a class to know what they know. So I don’t see how your statement is any help to this thread.
This is one of the prime examples as to why so many people lose in forex. Look closely at the chart above and tell me what it is you see? Look at those two different currency pairs and notice how they have the same exact formation and color close of their candles. Why is that of importance, well because everyone wants you to believe that this market is based on “supply and demand” as it is in stocks, but the reality is in forex, everything is based on Algo. In order for two different currency pairs to have not only the same color candles but the same formation suggest that the same exact type of buying and selling is going on, but how could you have the same amount of buying and selling at the same time, of different currencies in order to get the same results. The answer is that this market is based on things which we don’t even know to be a “fact” or “true”. Correlation and mirroring aren’t one of the same, but most people would like you to believe so.
Thats really it in a nut shell. They have a clear path to follow. Most traders don’t. If I could give a new trader only one piece of advice it would be this. Find a successful trader and do what they do. If you do that learning to trade should take a few months not years.
This is a joke, right?
A joke? What joke is there to be taken from what I explained above?
Your post implied that there are some “mystical” forces that determine the price of any given currency pair. Both of the pairs you posted have a common denominator: the Yen. The charts you posted are 1 minute charts from the Asian session, so for the given time frame and the given currency pairs, the value of the Yen drives the price for both. For the Euro zone, the charts you posted were between 11:00 pm and 3:00 am, so it is [I]highly[/I] unlikely that there will be economic events to drive the value of the British Pound or the Euro. Taking into account that information, why would you expect that these two charts [B]not[/B] look very similar?
The only possible answer is that you have a very poor understanding of the markets, or you are intentionally trying to mislead the audience of this forum (what you would possibly have to gain is beyond me).
Additionally, your allusion that supply and demand don’t drive the value of currencies is ludicrous. Supply and demand drive every single free (or semi-free) market that has ever existed. If you argue this, then you don’t understand what the terms supply and demand actually mean. To be fair, there is an abundance of “supply and demand trading systems” that have nothing to do with the actual definition of those words.
MasterKiwa,
First my apologies because I can’t understand what you have said about correlation and mirroring (my English sucks). Is it good or is it bad??? I often trade correlation whenever I see opportunities. I was also doing this when I was in the company and I think it often does work. Most often I use correlating pairs just like indicators since I don’t have indicators on my charts because I’m a naked trader and trade them all. I don’t always rely on correlating pairs and I also do trade normally by looking only at a specific pair. So I’m thinking am I doing it all wrong???
I added some photos of my random trades. They were all live or ongoing trades when I took the screenshots. Number 4 pic is when I was still analysing the other pairs but had entered one trade. 5th pic is a non correlating pair. So which is right???
About my candles, Red is for UP, Blue is for down and same with the entry line.
You don’t see how it’s of any help because you missed the point [I]entirely[/I].
The point wasn’t the medium through which the material was learned. The point was the level of [I]commitment and effort[/I] that is applied.
No one becomes a doctor or a lawyer by attending a [B]single[/B] class or by reading a [B]single[/B] book. Years of dedication is required. The reading of dozens or even hundreds of books is required. Taking dozens of progressively difficult classes from an accredited (quality of learned material is important for doctors, lawyers, and yes - traders) university is required.
The greater point was that many people think they can read a “strategy” thread on a forum like BabyPips, open an account, and make thousands of dollars. As with any profession, dedication is required. Some will become successful faster than others, but all who are successful have dedicated time and effort to doing so.
Let me first of all thank you for the kind insult. However, you simply looking at the “time” and coming to the conclusion that the Yen is driving the price, thus causing all pairs EJ UJ GJ to look the same. Well would you please be as kind enough to tell me why is it that EU (which isn’t a yen pair) did the same exact thing that all the other pairs did? Since you lack the knowledge of forex, I will guess you answer will be “Well EU is highly correlated to UJ…” yet that doesn’t explain why if this market is based on supply and demand, why is that different pairs trade tick for tick with one another than all of a sudden stop, only to do so once again.
To touch again on the “time” explaination which you gave. If that was a “rule of thumb” or even anything close to it, then certain “instruments” will “ALWAYS” do the samething that others instruments do within x amount of time. Yet, we can clearly open a chart and see that isn’t true. Making your excuse nothing more than an excuse and not a “rule” which follows law. Law of price action.
Does Supply and demand drive “every market” Clearly not forex. Why is that? Well because Forex is a decentralized market which has no “LIMIT” on the amount of “lots” which can one person can be in possession of, whereas in stocks you have a max amount of “shares” which anyone person can have and thus creating the real “supply and demand” The supply and demand in stocks essentially comes down to the amount of shares which can be taken off the board. If a stock is being diluted ( it is IMPOSSIBLE) for the price to move up unless the dilution stops and new volume takes those shares from the market.
Now here is where we get to the fun part. The supply and demand theory, doesn’t apply to forex because both the “supply” and “demand” are 100% artificial in forex. How so? Well open your trading terminal sell EURUSD and tell me if the order you placed actually “hit the market”. Being it isn’t possible for you to tell if your broker is taking the opposite side of your trade, or if you are being exposed to the market, that alone makes your broker and the volume he/she claims to trade FAKE! Which means if my broker takes the opposite end of my trade, than I don’t actually OWN anything, meaning I haven’t taken anything from the market, which boils down to you basically trading DEMO with real money. lol
As for why those two charts SHOULD NOT LOOK similar, basically it comes down to “supply and demand”. What are the odds that the supply and demand of two totally different currencies are exactly the same, thus causing the same wicks to be formed, the same color candles etc. It’s like if you and I are driving on a highway. If you and I are both moving at the same speed, that means we are doing exactly the same thing (pressing the gas at the same rate, braking at the same rate etc) which means that if GBP/JPY is dropping and GBP/USD is dropping a noob will say (Oh they are highly correlated so they do the same thing, or they will point out time as you did) but in order for both of those instruments to do the same exact thing they would have to have the same distribution of supply and demand, which is freaking impossible because gbp jpy and usd don’t all have the same amount of “supply” to be met. Clearly you lack the ability of explaining yourself, so go back and read up on babypips about supply and demand.
Thank you very much for sharing your charts. As for the correlation thing, the reality is you have no edge at all trading “correlated pairs” only because if they are truly “correlated” they will literally move tick for tick at the sametime. So say you see GJ spiking up and you know that UJ highly correlates with it. You will almost never see a case in which GJ spikes up, UJ stays flat, then a few seconds or mins later you then see UJ spike up. That seriously almost never happens, and that is because of the algo based “supply and demand” setup we trade in forex without knowing.
You see that uj gj ej have the same exact pattern on your chart yes? Well the moment that they stop having the same pattern, what does that tell you about correlation? It tells you the same thing about many systems. They don’t work in the long term because you are basing your position on a Bias instead of learning how to read the loops in the system.
Now you are just responding just to take the other side of the coin my friend. I have gotten to where I am in forex by reading forums and putting into practice what I have learned. I am not sure how a “single” class got into the conversation, but what I can say is that you are a waste of time, so welcome to my ignore list!
Thank you very much for your explanation. Actually though I may be living of from trading now (I’m still striving and still having some very bad days…) and have experienced working for a trading company but only for a very short time as a trader that I’m one of those who got placed on the seat prematurely and have detached/resigned very early so any info is golden. Yes I do know how to chart and was trained very well but there are things that I lack and don’t know which I’m trying to learn.
About the correlation, actually I trade them very often and have a decent success rate, mostly breakouts, retracement and bounce. I also love trading opposite correlating pairs like EUR/USD and USD/CHF, anything that have some similarity. Actually I take this with a grain of salt and I don’t stay in too long because of the algo-feeling that might be happening??? Some say that the market is being manipulated which may be good or bad but I just try my best to detect them and place some bets when the movement begins. I use this more on shorter trades or for scalping and just ride the momentum and when I feel that the charts are starting to act funny I just exit. For longer trades it’s still a “big question mark” for me so when I see no correlation I just analyse the charts individually. I’am really trying to learn the loops in the system and some are quite obvious in the charts and this is why sometimes I don’t use S/R. Even indies, cause everybody are looking at them and tweaking those peaks for the normal joe-trader to fall in the trap. I’ve fallen into the trap many times not to know… Like everybody is looking at this certain area, everybody is thinking the same… something like that. Sometimes I even don’t believe in charting and when this happens I just take a break.
The biggest question is why does it really take so long?
MasterKiwa, how can someone who has been a member here for so long post so much incorrect, misdirected garbage?
You’re coming up with your own theories on what is already proven fact.
8
“Single” came in because [B]you [/B] mentioned [B]a [/B]class and [B]a [/B]book, which implies single
MasterKiwa and PoPip… you missed my point completely… Simple system…Green is up… Red is down…
It doesn’t matter if Aliens take over the White House… Godzilla walks the streets of Tokyo…
Using the HK-A and 50ema system today USDJPY, It goes green I Buy, it goes red I sell it takes nearly all the fundamental noise out of Forex trading.
Using the simple strategy I explained above, 90+ pips where up for offer in the past 12 hours. (I bagged 65)
Sorry about the quality of the image… not sure why its crap… help?
Simple…like anything else it takes practice to be a successful trader. Like golf or any other activity it is said you need 10 thousand hours of practice to be truly great at something.
Keeping it on the “I” I would say it took me so long to get to where I am only because I want more entries. In doing so we make modifications to our code that works and before you know it that new line of code leads to new code and then you have mess which was nothing like what you started with.
Looks good, yet only because it is a dead chart, but while trading it live, all those EMA line crosses and close across will have anyone ready to not use that type of system. Yet, blinding it into this thread’s topic, the reality is any system can work if you work out all the variations and stick only to high probability trades. So although i may look at the above system as “play-school” or “crappy” the reality is the person who has shared it, may have some sort of rules or variations which might make it the best system in forex.
Thanks a lot for supporting your baseless claim. :35: Why don’t you pick something I said and share some post which supports otherwise.
Back test it on your chart (5m), you tell me… I use 4 other systems with a similar strategy.