I like where you are going with the strength and weakness idea. Two issues I see with that. First I have no idea how to identify the big players withing a certain time frame based off volume. All I have been able to measure is buy volume sell volume and net volume within the time frame I am measuring. Secondly, it would be sweet to figure out what the big players are doing etc, but I don’t see how you can determine the next days signal based off what big players did yesterday even if I could determine how they traded if that makes sense.
This model that I am trading has an advantage. I don’t need to know strength or weakness, I don’t have to know what news is coming out, I don’t even care what trading sentiment is like or whatever. All I care about is how yesterday happened in terms of money. Most importantly how the wicks compared to the bodies (candles). In the years of testing I have done, the most valuable lesson I have learned is you can’t determine future price based off traditional indicators, support or resistance, news or anything of that nature to extreme accuracy. I’m not extremely accurate yet, but I do believe how I view the market has a statistically higher chance that over the long run that I will have higher accuracy and a greater chance at sustaining profitability in the future, with the added benefit that I learn over time and get better and better at interpreting my calcs. This model has huge potential to become more profitable over time as I learn how to read it better. Unlike traditional signals that can not be improved unless something is tweaked or whatever. I have no need to tweak anything to get better results. It comes down to a little discretion.
Back to the candle wicks and bodies. When people look at charts most people only look at wicks near highs and lows on whatever time frame they are looking at. However, Wicks occur almost on every single hour candle, 5 min candle, day candle etc. From my research, just looking at what goes on between open to close is completely useless and gives no future price inclination. Instead, by measuring all the wicks on each sample I measure (1 hr data) and analyzing where price has already gone but retreated from, gives us future price inclination depending on the ratio of the extremes to the body (determined by summing up all the ratios for the day). That’s the meat of the system. What happens between open to close is much less relevant to what happens in the extremes compared to open to close.
Ok onto some updates.
GN was a good trade but my stop was 10 pips to high. So I lost 50 pips on my first GN trade.
AU is holding her own at +7.5 pips currently
I did get up in time to catch another trade in GN because I knew my signal was still good and strong…
My second GN trade I entered at 1.98355 with a stop at 1.978.
Currently I am up 48.2 pips in GN
Looks like all the other pairs are doing exactly what I determined they would do so thats a plus. With the two trades I am in now technically I am still in profit for the day by a few pips. Will be back later with another update.
Back the Meihua… I would love to read the article you are going to post when you do post it. And I’m not worried about anything you have to post about (you won’t be stepping on any of my toes), you are welcome to use my research as well. I will send you the spreadsheet when you pm me your email. As far as trying to hide things etc lol, I don’t intend on leaving anything out or whatnot. I would like for you to see everything and really take a look at what it means and how it works etc. I am sure you will have plenty of questions. If their are any errors, definitely let me know. I will have some questions as well. Will talk to you soon hopefully and when I come up with some more questions I will run them by you as well.