How comes you go to a battle without knowing who are you going to fight with.Without knowing what buyers are doing you cant be a seller and vice versa .Look at the strength of what you are going against. If it is so strong how do you expect to beat that!!! Wait enough until The guy is exhausted then hit and move on.
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Timing is so important, When you go early you may see the market goes against you when you enter late you find the market approaching it extreme.
To keep things easy it is very expensive.Not a book but a full course plus my own experience
Yes, understanding the difference between buy & sell side is very much important.
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That’s called market structure.
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Total ly agree.To make it’s simple that help us to clear decision because when we are trader , there are winning and losing position . I always use Dow theory to understand the price structure. This is from my own experience too!
I’ll be a buyer if the bulls are strong. And when the bulls run out of power, I’ll be a seller. It does not matter who to be on the market.
Alex that I agree with!
Carir, Dow Theory, correlations a great but so are non-correlations.
That’s my bread and butter, Strength and weakness between the 2% deviation.
Ok, if you take say a Bollinger Band (maybe read Kathy Lien) I used to use a Double Bollinger Band with the deviation set at 100 and 200 percent. Picture a standard deviation bell curve. The simple version is use the center line as the start of the center between S&R, the mean deviation. A trade can only move so far in a bull or bear bias, this is measured as deviation from the mean. Of which all indicators are based.
Trades will roughly coincide with the 1% and 2% or greater with the percentage. This will enable to trader to place odd on when to enter a trade. In my Bollinger Band example anything in the 100 or 1% rage is a channel, out side 200 or 2% is overbought or oversold.
Most folks trade from the mean outward, I would do exactly the opposite, once the PA passes the 2% wait for a commiteds reversal and then trade back to the mean and beyond to the opposite 2% signal. Its all Moving averages.
Now if you combine that with an oscillation say the CCI (my fav) or the Stoch you have a very forcaster of momentum and trade confirmation.
There you have a trade strategy and an over simplification of percentage of deviation.
Now if your math knowledgeable and I am not what your really want to know is variances. That’s why I have moved to strength and weakness identification because that the momentum of why a currency pair moves.
