Just took a nice UJ long scalp this morning that I’d like to share I know everyone reading this is already (hopefully) in tune with Pete’s method. But I’d like to go through a bit of the thought process with this trade, and while it was in draw-down.
First up, the daily review for me has the yen pairs (still) long, no surprises. Being Asia, I’m not looking at GU or EU. So UJ long for me was one of the ones. The hourly chart, still in a healthy move up. The black and white rule being “has higher prices attracted significantly high volume ie: are there sellers up there that are active?”
For me, I’m ok that UJ hadn’t attracted high selling. The next step, where’s it going to retrace, to let us jump on the wagon? This is another of Pete’s, if it’s a healthy trend with no selling, you can be more aggresive. So here’s my 5mTF:
I waited for a No Supply, and the confirmation candle hovered above without high volume so I entered. I should have waited for a close above. This trade went into draw-down for … 40 minutes maybe? But with a strong background bias, and drawing the fib tool the thought process goes “my stop loss is below the fib zone, I wouldn’t actually mind if it came down to fib and found buying volume”… This method give you peace of mind.
Ha, sh!t, I just looked at UJ while I’m typing this It’s almost embarrassing.
Obviously im not speaking for Pete but i have done alot of cross checking and i would recommend to
check out FinFX demo…
Dont take my word for it, check it for yourself and see what you think. Then check it next to FXCM or Oanda and you’ll see why Pete is so picky about the volume feed.
I compared FinFX Demo to Oanda Demo… volume looks relatively the same. Out of maybe 50 candles I look at, one may have a different amount of volume when comparing brokers. Otherwise I see no difference. :mad:
In terms of volume being higher/lower than previous candle(s) I see hardly any differences. The amount of overall volume is higher but I don’t really see that as a big issue. You’re mainly looking for where supply/demand is based on comparing volume bars increasing or decreasing, no?
For me its not just if the volume is decreasing of increasing… its the amount of volume in one area compared to the amount of volume in another area. I mean how do you compare the last two areas and then make a trade decision based on that comparison and put real money on the line? If you feel that Oanda is “good enough” then by all means go for it.:57:
EDIT: If your interested in Pete’s take on volume feeds from different brokers the check out this video…
he talks about brokers starting after 4 mins but if your new then the whole video is good.
I’m checking out CitiFX Metatrader, it’s looking good but as I begin to find a terminal to adapt to, I do have some questions.
How significance would it be to switch to a chart that has different daily closes, as well at opens? IBFX operated on GMT while CitiFX, and maybe future terminals, close on EST or whatever the case may be.
Another thing I noticed with FXCM, and with Citi to a lesser degree, is the volume that stands head and shoulders above the rest of the visible chart make the subsequent volume bars appear extremely insignificance. Even if those “insignificant” volume bars provided solid entries/moves prior to the massive volume bar throwing everything off. It’s probably nothing to worry about but it could potentially throw off an analysis if you conclude volume isn’t SM just because in comparison to “HIGH CLIMACTIC” volume, on FOMC for example, it’s nowhere near as high and skews the rest of the charts volume and your analysis.
I think for me that was the key reason to steer clear of FXCM and Oanda. Most of the climactic volume is similar to IBFX but the relationship and the context of each bar with the other bars is what seems to get lost.
Also i personally prefer The New York close… and i think most traders agree that this is the true end of the trading day.
Kinda interesting that Jason Rogers from FXCM messaged me and asked me why i didnt like FXCM volume. I gave him my opinion and this is the response i just got…
"Hi Bill,
I appreciate this feedback. I’ve reached out to our programmers and will let you know if they can create some some more volume indicator options for our clients from other sources you describe.
Jason"
So who knows… maybe FXCM will step up their game and get with the program. If they do i would be happy to trade with them.
Hi, i come across this thread several months ago and did not follow the thread because the thread is already few years old and the methodoloy looks complex…
After stumbling all over these months I would like to learn from Pete.
I would like to where can I obtain the indicators as Pete uses?
Thanks
You don’t need anything you don’t already have in MT4. The two moving averages are the 50 EMA and 14 EMA. You’ll learn what the are for…colors are just fancy. The Volumes indicator is included in your MT4. I’m looking for a new Pivot indie since I changed brokers and it doesn’t match the daily start time.
That’s it. Happy learning.
I know everyone reading this is already (hopefully) in tune with Pete’s method. But I’d like to go through a bit of the thought process with this trade, and while it was in draw-down.
