The bank of England would say yes.
Hi john, I think I might have missed the point you were making. What I was saying at a basic level was that price doesnt recognise anything. Because its moved by buy orders and sell orders lol. The people or computers buying/selling can recognise these technical patterns by looking at liquidity around the particular points. Eg theres a trendline by joining the higher lows. Each higher low means there were more buyers at those points than sellers. Therefore it would be obvious that there is liquidity sitting there in stop losses. So if a particular desk needs liquidity to move higher/lower they may want to push into those zones to facilitate a move.
For someone trading trendlines, they dont need to know why one support held but another didnt. Because the trendline is not the reason for a success or failure. You just trade your rules and edge and over a number of trades you will be profitable.
What about algorithms during 1929, or the South sea bubble or as I said previously the Tulip I mania?
They were not around in those days yet the same patterns existed.
Granted algos and HFT have affected price moves which is why we can declines in record quick time now eg the Flash Crash but algos do not explain why prices behave - in a structured and orderly manner
When you say ‘they’, who do you mean?
To make a market you need buyers and sellers that’s all. The reason markets move is an imbalance in buyers or sellers. Computers just add to this and move looking for small price imbalances or seeking liquidity or what’s it developed for. But price moves up because there are more buyers and sellers etc.
The reasons behind the moves are either fundamentals, technicals, sentiment and hedging or any combination (algorithm/hfts can be added under any depending on the coding). Tulip mania, bubbles and general day to day all move due to those reasons. As we cant know someone’s intentions but peoples emotions are the same the patterns will occur again and again but we cant know which one will work or wont work at a trade by trade basis because each time there are different buyers / sellers involved.
no, they put out the same educational contents out for free so people can learn it and they can use that to manipulate the market. This I believe
lol you don’t wanna partake in the exercise? its alright. not tryna market anything. just wanna hear people’s opinion. but there are many sad people on the internet obviously, so I am gonna end the thread and move on.
then everything must have been done manually, but I believe later on came the algorithm. but I believe there are still some times that human intervene, like elections
I think I meant the dreaded algos - they were not around until quite recently.
I am not denying your point, I know why prices moves, on the one level. I guess I’m meaning something more esoteric, sure they conform to trends, I’m just amazed that collectively the ‘crowd’, can create something of such beautiful symmetry.
It always fascinate me.
from this thread, only you sound like you fighting. lol. check my use of English, I am not tryna market and I am not looking down on any method, we are all giving out our opinions on a topic. I believe there’s something wrong somewhere, check yourself man. You feel attacked subconsciously.
yeah its fascinating
If you haven’t already read Reminiscences of a stock operator you should, besides being a trading classic from a time before algos - in the last few chapters, it discusses market manipulation and how to paint the tape.
I
ok thank you. Will dig into this
Ah I see! Lol yeah I agree it is fascinating. I think I read something like it’s a visual representation of market greed and fear. The funny thing is as a beginner when you jump on a trend, you feel like it always reverses then. Like it’s against you. But the truth is at that moment the majority of people just started to take profit and said I’m done lol. Mass psychology is probably the right term!
With algos I would say that algo’s do what people develop them to. So what people used to do, they program algos to continue. In essence it’s to engineer liquidity or seek it.
I highly doubt you are this innocent. Quite clearly, you wanted to discuss the interbank market and price delivery algorithms but you did not mention this at all in your original post. More likely youre hoping to get people interested then you’d like to unveil your new found knowledge by proving people wrong.
Next time, just be transparent, say ive learnt this or seen this on a chart and this how i trade it.
Here what ‘we’ trade. Rather than using cheap marketing just say what you want to say. What do you trade, what have you learnt, what do you want to discuss.
The things you’ve mentioned so far, like trend lines, head and shoulders chart formations, etc. are not TA tools that are unique to Forex. I think you may be mistaking a lack of effectiveness/suitability for market manipulation. I’ve always read and found that common chart patterns like head and shoulders are simply not as effective in the forex world. Price action doesn’t move here like it does for equities, and what often looks like a sweet TA setup means nothing. In my experience, this market is exceptional at defeating trading strategies.
In my opinion, people often mistake difficulty for manipulation in this case.
I didn’t create the thread here, I have a signal group and I created this thread there, what I did was copy and paste and I didn’t read through to edit that part out. Well that’s the error I made. Not trying to market anything, the signal group is not even paid.
And there it is…
Theres always a signal group. When you read loads of posts on babypips you can see right through them very easily.
All brought to light in about a day. Not bad!
Lol It was a hard days work.
you talking about selling and your bio is a sales pitch. tf