The term is used to describe the non-STP brokers who trade against their clients and manipulate feeds to traders’ detriment.
They are however not the real market makers ( i.e, those who ACTUALLY move price ). Those ones are not interested in the shenanigans of the other guys; they have better, more cunning ways of extracting profit from both bulls and bears.
That is why patterns repeat over and over again. Those patterns are their tracks that show us their intentions. Thus, we strive to trade with them, not against them. So it doesn’t matter if the manipulators are reading this thread!, the big guys will leave tracks that we can follow
PS: to avoid being traded against, stay with an STP broker. Yes, some do run B-Books but most times you’ll be ok. And as Johnathon advises, do not store your whole trading capital with the broker; keep only what you need to sufficiently open trades.
I guess I figured out why this trade didn’t turn out well. Anyone please comment on this.
I caught a 2 bar reversal at swing high on EUR / JPY daily TF.
but I didn’t zoom out and I didn’t see the overall big picture which is a massive uptrend than a pullback and the 2 bar formed after the pullback at the continuation of the uptrend. So there are 3 mistakes here. It is a bearish 2 bar formed at swing high BUT after the pullback was over. Other mistake is that 2BARS ARE NOT CONTINUATION SIGNALS even less Bearish 2bar at uptrend continuation. They are reversals. So I tried to trade a Bearish 2bar in an uptrend, that’s a big mistake I think. Another mistake is that it is not a long obvious 2 bar.
I think you answered your own question. I wouldn’t even call it a 2 bar as the bearish candle bearly closed half way and you really needed it to close 2/3 or more. It just didn’t shout the bears are now in control you know and if your CT trading you want BIG PA to say we have the wheel.
I need some explanation here. I don’t get it. Why the price would go high? It is a downtrend than pullback formed so after that the downtrend would continue Right?
I leave you with an inspirational quote. Feels exactly like the process of learning to trade successfully
Cheers!
[B]The very first company I started failed with a great bang.
The second one failed a little bit less, but still failed.
The third one, you know, proper failed, but it was kind of okay. I recovered quickly.
Number four almost didn’t fail. It still didn’t really feel great, but it did okay.
Number five was PayPal.”
– Max Levchin (co-founder & former CTO of PayPal)
[/B]
zubair said:this pair is in downtrend
got a pullback
so now will we wait for a price action signal in this resistance zone for shorting again? image example
I’m a little bit confused here. I would trade the way both dudest and zubair did DOWNTREND > PULLBACK > RETEST > DOWNTREND BUT what you see as a downtrend it is actually a pullback of a big UPTREND. See the zoomed out big picture:
After that Bullish 2bar why the price didn’t bounce up. 2bar sat on 141.000 support after a pullback. Or I’m missing something here.
Thank you dudest You have always been a great help for my learning process.
Not a trade i took as the pin-bar didnt fit my rules but a great level to get long with the recent momentum in line with the long term trend at swing low and a solid support level 1.40.
Learned a lot from this trade. I was having a very tough time and literally freaked out when that bearish pin formed. I would like to thank you Average Joe and Ryan for being patience with me and helped me through my crisis. Without them I would have had a nervous break down.
