they’re not all going to be active on the same pair at the same levels though are they. in fact, they’re not even going to be bidding or offering at the same level on every touch, surely?
barclays will have very different internal order flow commitments to bank of new york mellon or citi, or even some of the larger capped hedge fund units.
then you got to bring the broker units liquidity requirements into play, & that can swing wildly on any given day, yeah?
regional & cross border units of those same banks will surely be offsetting & bidding/offering certain pairs at specific levels to balance or lay off risk?
that will affect the validity of a level, especially time of day & time of week-month (option defense & expiry are two examples that spring to mind)
surely that’s why these layered levels sometimes absorb or reflect the order flow in an orderly manner & sometimes they don’t.
supply & demand mirroring the liquidity, strength & hierarchy of the multi-tiered trading machine, which is why the smart traders always protect their orders
Ah… I see what you mean. What we are attempting to do here is use boll bands and various ma’s to determine where PA is going to go.
A 20:2 boll will catch 90% of PA movement in any given time chart. A 5:2 boll will track PA within a 20:2 boll. As to MA were using various according to the time chart. I am using a 3 regression on the 1h chart. For 5m and 15m current thinking is 3/6/9 LWMA line up (broadly speaking) some use others.
I simply plot the day chart S/R as an additional tool when plotting the S/R levels on an hour chart (my preferred time chart).
Hmm… clearly not a novice… were not seeking to intellectually analyse trading in this thread… best left to the analysts who ironically don’t do the trading.
I will be delighted to go over what and why banks do what they do in PM with you in detail if you require an understanding? Although for the most part as a retail trader (if you are?) this should in no way effect how you trade the charts.
Hehe…“Code slingers” You are so funny.
Yeah.I thought as much.I have background in finance,not computer program. Just trying to get some pips to enjoy life.
I am indeed a code slinger, that’s the day job. Not with PCs though. Mainfraime IBM AS400 or iSeries as they call it now. The language is RPG and CL
Not very much use for forex I’m afraid. Have dabbled with programming an EA but can’t find the time to study the language and get good at it. Too busy reading forums… hmm…
John4pips
I started with fx in the beginning of 2009. Until the last 2-3 months I traded “almost exclusively” EUR/USD and USD/CHF. I develop some sloppy stop loss habits with EU! EU backfills so much if I wasn’t near the extreme highs or lows of the day I wouldn’t bother to set a stop. And if something went really wrong I would hedge EUR/USD against USD/CHF and wait a few hours and all would clear.
But my sloppy stop habits are getting me into trouble trading GU! To work on the 20 pips a day idea I have to control my New England cowboy ways! Also might flip back to EU for the 20 pips. The reason I started with GU was to up my pip count.
For a while I had a pretty tight game with EU, was able to grab 30 to 50 pips a day, most days a week. Then I started taking risky longer trades, overnights, etc trying to build daily pip counts. After studying Carter & TalonD’s spreadsheet I see the advantages of a consistent method with just 20 pips a day!
I also like the compounding. Compounding lot sizes while also increasing trading ability and confidence, one trading day at a time. So I’ve got to slow down and reprogram my trigger finger and get rid of some bad habits.
I’m not given to outbreaks of praise (deserved or otherwise) and would suspect in your case judging from your forum posts (heavy on I don’t suffer fools gladly) it would not be well received … but it seems you are one of the few… I’ll leave it at that.
A good deal of honesty and integrity in this post. I have only previously told TalonD about this but I have only one son who trades FX (I have 12 kids). He has always been very good with money. I would give £10 to each of them and he would go to the store and buy some sweets, the others would blow their entire funds. In FX he does the same. He takes 20’ish pips and bugs out (usually the morning London). He opened an account with $250 three years ago. Now he has a big dollar account. How many do you think will follow it?
Not preaching just detached observation. Compounding is the way… not big pips in any trade.
I feel you on this. If you know the importance of 20 or 30 pips per day consistently,you know understand what i am talking about. My background in finance tells me compound is the way to go.I have RC and TalonD spreadsheet on my laptop.Thanks for their help.It may surprise you that i have been meeting my target consistently.
Just follow 20 or 30 pips perday and be disciplined for 300 days. Self-discipline is the watchword here.
You will be surprised how much your account will be toward the end of next year.
Peace be unto you.
John
Hahahaha…Dont say it is not useful for forex because you have taught me on more than two occasions on how to add indicators to MetaTrader4.Your skill is valuable in forex because it involves critical thinking.
“Busy reading forums”…i guess there is money in the forum.
Keep up the good work.
John.
There is a big squeeze on the 4hr bolls at the moment considering the range all week. Presuming there will be a momentum break out of this at some point.
Wow, you’re right. So far this week the high to low range is only about 210 pips. Usually GU is good for 400 or more within a week. I wonder if today’s US GDP news will move things like UK’s did last week. Let’s keep our eyes peeled for a big move!
Have dabbled with programming an EA but can’t find the time to study the language and get good at it. Too busy reading forums… hmm…