Pro money isn’t tracked by volume… only retail volume.
A lot of money that goes into the market by banks is done via a clearing bank… so identity is hidden. And it is done within the interbank market… which then translates onto a brokers pricing to offer quotes to retailers.
David, everyone, a favour please. Could we all make it clear which pair we are discussing in every post? I am finding the charts here not easy to read (as I can’t always blow them up in the way I could at the other place). We are also discussing a wider range of pairs now (which is great). Just to save time it would really help me. Thanks and have a great weekend.
No problem!
Twitter: @FxJefferson
2 pin bars with stochastic double bottom at extremes all at the bull/bear zone 50% fib retrace testing the 100sma and top of my triangle on the gbpusd 15min chart was a entry for me, so I have taken a buy. Have 2 hrs until the end of the London session, will see if pro money stands here or not. Don’t mind if I have it wrong as need to pull the trigger when a signal occurs, and if I am wrong then can look to sell if the bears push price down.
Hey Dave,
I have a quick question, still learning the lingo
I’m looking at the info at IFR and when it says:
“Closest Cable strikes at 1.5600 and 1.5650”
What exactly is a strike?
Does that mean there are bids sitting at those levels?
Thanks
Charles
I’m keeping a close eye on this and trying to figure out the PA, just as you went long the price came back down into the zone pretty decisively, could this be Pro money pushing the price down for more retail money to get in before moving it back up, or is this the retail bears trying to push through the zone?
Wow! thats a bit of luck for now, placed my stop below the 100sma and price came within a pip of taking me out
Strikes are option prices/levels which the banks trade and which I traded at the banks.
There is a lot of different types of options, the main one is a vanilla option… the strike is the level that is agreed to buy/sell (puts/calls) but not obliged to own.
So if there is a strike @ 1.5650 with an expiry for the New York cut (3pm UK Time) then if price expires above there at the cut, a premium is paid out. If it expires under the strike then its a lose occurs.
Most banks protect their strike prices with super large bids and offers in the spot market to stop price moving above/below their strikes… or try to reverse it back up above/below theri strike before the New York cut…
Normally after the NY cut has expired… any protective bids/offers that were in front of the strike prices and have not been filled, get deleted/cancelled.
Does this help?
Would it be wise to short tis Usd/Cad today? or leave it to Monday?
Oh Yeah.
Thanks for clearing that up.
Hi Kores… I’m predominately a London session trader, that’s pretty much all I trade as the session has lots of trade volume.
I tend to call it a day…(no more trades) at 3.30pm UK time, and if any trades are is still open after that, then I just manage them until London close. Monday-Thursday.
On Fridays, I tend to stop trading at 3pm as volume significantly drops as London traders who do keep positions on during the week over night, tend to close out for the weekend.
So to answer your question, personally I wouldn’t as it doesn’t fit my session. But that’s my personal way of doing things. Fridays can be very sluggish towards and after London close.
Hi joffie just one point I should make on your trade for GBP/USD
Your stop really needs to be under the zone and not within it.
The zone if buyers are located there can be tested many times filling bids located there. Only a move below and close below the zone will show weakness… so the stops should be there.
Just pointing that out for future reference.
I think you said on another post your stop was just below the 100 hour SMA’ but the lowest level of the zone is 1/5630.
Maybe I’m missing something but it doesn’t look like price came down to bbzone just yet. I think this was identified at 1.5730-50 am I wrong?
Just thinking out loud here…
In the case of the E/U today, where there were several options both above and below price.
Would it be safe to assume that a bank may have options above and below the current price, but as retail traders insist on pushing price down, they may exercise the put options at or near breakeven and continue to push prices even lower to bank the call options?
Would you mind analizing some charts as it comes to weekend or you prefer to stay away for at least 2 days?
I’m very curious about odd pairs and am really like to hear some direction if you please, say some about Cad/Jpy, Aud/Jpy, Eur/Cad and Aud , Aud/Cad, Cad/Chf please.
Assuming we’re talking about GPB/USD
The bbzone was located between the 50 and 61.8 fib zone coming off the 7/18 low to 7/19 high.
That puts it between 1.56587 and 1.564
Price is sitting right in the middle of that now with a decent bit of retail volume building…
Ask him that much and I think you need to start paying him 
Hi,
That can certainly happen yes.
But do remember not every option expires on the same day… many have different expiry days and times.
Option barriers can be traded along with order flow within the spot market. A lot of prop traders and dealing desks trade this way.
They basically take advantage of the bids and offers that sit in from of the option barrier for a few pips (10-20 pips).
If your on IFR then you will have access to their order board as well as option barrier levels.
1.5630-50ish.