I am Payne and I trade forex. I use very simple set-ups and I am not very heavy on technicals. Mostly pivot points, volumes and an awareness of general market/geo-political conditions will do for me.
So enough about me and off we go, I have entered long Aussie-dollar at .90500. Attached is a chart for those who like graphics. My stop for this trade is at .8990 (I always use stops ) I will keep the target open for a while, but I think I will take half off at 9120 and then rest around 92.
Main rationale is that the Dubai news was very bad and hammered markets all over- USA was more or less closed, which abetted low volume shenanigans.
So I believe Dubai news though bad, will not affect markets really bad. Especially AUD-USD which is in a strong uptrend. I expect to see a recovery early next week. Happy holidays!
what’s the purple oval on top of the volume bars? chart’s a little hard to read at that size of picture. What’s the red rectangle under the price near the right hand side of the chart?
[QUOTE=TalonD;153230]what’s the purple oval on top of the volume bars? chart’s a little hard to read at that size of picture. What’s the red rectangle under the price near the right hand side of the chart?[/QUOTE]
Hello ,
I have been playing around with a new a new monitor and it’s resolution. I have attached a new chart, hope it is better.
Anyways, both ellipses highlight the extreme volume on 15 minute bars. Volume is on excess of 10,000 ticks and that is huge for a pair like Aussie on a 15 minute time frame.
Who would be selling at these levels? This is obviously heavy buying and the pair is being supported at the .90000 handle. The same was seen for YenDollar and I had bought that from 86.50 to 84.97. I closed all yen dollar positions today at 8700.
The rectangle shows the support just below .9050 levels. Do mind that it is a long holiday here in the US and volume throughout the day today was very low.
Yes it does appear random but then one sees these peaks in relation to other things and no tin isolation- like in relation to other volume bars, range of the bar itself and of course, in relation to where price itself is. A lot of useful information can be gathered from the interaction of price + volume on or near s+r lines.
I have attached a better chart (MT4) and highlighted some areas of interest. These are regular spikes too , but notice what happpens when these spikes occur. Of course these are on higher time frame, but same applies to lower timeframe.
First off, do not use the usual MT4 volume that your broker offers. That is just in-adequate and may also be manipulated. I posted the chart from MT4 as that is easier to read. However for analysis I use GTIS forex data from live charts (e-signal, but cheaper). They have about 200 contributors and I can also filter on my own broker if they supply them feed.
Secondly, “true volume” in forex does not help the trader. Unlike in equities, where an information like a particular market maker is buying 5000 lots of GE is helpful (after all they are buying because they see some value in the stock and believe it will go up), in forex, what does it help to know that GM just sold 50 million euros to repatriate dollars back to USA for the cars it sold in EU!
However, for intraday traders, the tick volume is an important source of information. It gives you a sense of true activity around major s/r areas and intraday s/r areas.
Volume is only a concern when you want to exit a position and there is no one to take your trade. Chances are no one on this forum trades at a level where they a problem liquidating their position. You are only fooling yourself when you look at volume on retail forex charts.
Every hear of the “point of diminishing returns”? I stand by my original post, if you are making thousands of pips, you do not need to incorporate anything else. Please read carefully, I did not say one could not keep learning or improving.
Well if we are being pedantic, then of course its possible to earn 10,000 pips a month and still lose money, or to lose 1000 pips a month and make a profit so if he’s experiencing the former, then maybe he does need to incorporate something else !
Regardless, the guy is still a dangerous nucience whose posts should be deleted.
Please direct me to the thread where you have shared your idea or method where you are making thousands of pips. Annotated charts would be a help if that’s not asking too much.
I want to be rich! hehe can you share me your holy grail? you said you have two… It won’t be a big loss I guess… I wish I could learn your strategies, as I see it, I don’t have to bang my head on the wall because I don’t have to worry about money management!
Break-even! wow the worst scenario that you had! awesome! :eek:
) I will keep the target open for a while, but I think I will take half off at 9120 and then rest around 92.
so if he’s experiencing the former, then maybe he does need to incorporate something else !
I wish I could learn your strategies, as I see it, I don’t have to bang my head on the wall because I don’t have to worry about money management!