Market conditions awarness

I don’t know too much about volume but I was thing about some methods to understand better and faster what really moves the prices… all the indicators show what happend in tha past … but none or I list I don’t know any to say something about what might happen in the future … ! ?

Then how to trade especially low timeframes binary options when there is no way to get a glimpse about what may happen in the near future???

When i say, confluence of multiple INDICATIONS. Please do not be mistaken that i mean just using only different indicators. That would be hugely inadequate.

What i mean is a combination of

  1. Multiple time frame assesment
  2. Multi currency strength status
  3. Multiple technical analysis from different reliable sources.
  4. Multiple fundamental analysis from different reliable sources.
  5. Does my own technical and fundamental analysis align with most of the sources that i have come to trust.

If it does not align with most of them. I stay on the sidelines. If it does, by all means, go ahead and pull the trigger.

Trading is no walk in the park. There is no free lunch in this world. You have to sweat it out. My philosophy of trading is skew towards one shot one kill mentality.

We are talking about raising awareness right? Hope this helps.

Cheers :blush:

PS : Hit the Target! Hit the Target! Hit the Target!

Please don’t trade binary options.
There’s a reason is being driven out by the lawmakers

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I think that ECN forex brokers that aggregate liquidity from multiple liquidity providers give you a representative sample of overall market prices and volume, similar to any type of polling. So I wouldn’t say there is no value there whatsoever although you would have to appreciate the detail of how their systems work to come to a definitive answer.

There must be some research on this somewhere.

The reality is that there’s awful confusion on this subject.

All ECN means is “electronic communications network” and that covers all brokers. This reality permits counterparty market-makers to state (misleadingly, though technically truthfully) that they’re an “ECN broker”.

It really means nothing at all.

They just use it in their marketing and presentation as a way of encouraging naive beginners to imagine that their broker isn’t holding the other side of their trade, and has no incentive for them to lose. Sometimes (often) that isn’t true.

These terms “ECN” and “NDD” (no dealing desk) are there to mislead people. They’re surely among the most misunderstood expressions in the industry (and a lot of “brokers” are making sure it stays that way).

What actually matters is whether or not the broker is a Direct Access broker, or a counterparty market-maker pretending to be a broker.

You may be one of the few, Ropunzel (and I think from one of your earlier threads that you are?) but my firm impression is that very, very few members of this forum are well enough capitalized to be using direct access brokerages and actually having their trades executed in the interbank market.

(That spammy guy from forex.com will doubtless be along on Monday morning to nit-pick at what I’ve said, above, and to point out that the brokerage he represents is not incentivized for their customers to lose … “in fact quite the opposite” … in spite of their being a market-maker!!)

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A more detailed understanding of market micro structure and engineering is required. A lot of conspiracy kicking around.

I have spoken with LMAX before about their accounts, market depth and access to disclosed and undisclosed liquidity pools. Can’t say I understand the micro structure properly and there isn’t enough time in the day to find out.

After I read all these posts… I came to the conclusion that nobody knows exactly what is the answer! Thanks for the help!!!

You are Welcome!

You didn’t help by originally asking a very vague question [quote=“Iulian81, post:1, topic:148401”]
Can anybody give me some hints about spotting the right market conditions
[/quote]

If you are serious about trading forex, I suggest you spend some months at the free school here. It will show you all the basics and more, it will help you decide what type of trader you are and will suggest strategies that suit different personalities. Then you will be better placed to ask questions specific to your chosen path

Namaste

Your free school tells nothing more than those on youtube or other sites… Nothing helpful only the same assumptions told with different words all over the web!! :smile_cat:

These five paragraphs are golden.

They should be a sticky.

They should also be included, and prominently, in the “school” pages, as the background within which everything else one can read here about brokers is interpreted.

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I didn’t know you had already read it all here.

I understand your frustrations but you are dipping into high frequency trading territory. You will need a lot of resources to pull that off it is not a newbie retail traders game. If you want to investigate it further speak to https://www.lmax.com/ and they can offer you reliable depth of market from their aggregated pool which you might be able to use to make those trades however you will need:

  • Customised low latency hardware
  • Extremely good programming skills
  • D.Phil level mathematics skills

That stuff is extremely taxing. I have tried. You might want to go for lower hanging fruit until you build your account balance enough to maybe recruit a team of researchers to help you.

Is it possible to use fundamental analysis for daily trading?? I was thinking to study more in this field but I don’t know the odds… I think ther must be a way to gauge the market bias on low time frames… otherwise we only have martingale or pure luck to trade using the existing indicators… I tested hundreds of stategies,… I know more than 90% of indicators… but I am not more confident than I was as a begginer…:grin:

I am not sure. Maybe for trading the news. I wouldn’t suggest it though but only because I haven’t cracked it myself. Alternatively I would recommend fundamental trading political news. US Election, Brexit Matters, referendums etc…in those cases the uncertainty itself creates market volatility and therefore movement, either strong trending, whipsaw or spike. You might want to consider looking at options to trade these events, to limit your risk but expose yourself to the upside.

Broad based fundamentals like balance of payments and that other stuff is generally better suited to longer term trading rather than daily trading. That is actually more like investing than the intra-day trading of market volatility in my view. I am far too impatient to do that myself but if you do look out for the daily swap rates because it might cost you quite a bit to hold your positions for a long time if you’re not on the right side of the swap.

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It is not enough to rely on technical indicators. Successful traders use a combination of fundamental and technical indicators. You should understand the reason for the trend before you decide to jump into the trade. Timing is also very important. Understand the best time of the day to trade a particular currency pair. I’ve learnt that the fewer the technical indicators you use the better for you. The most important indicators are the trend, resistance and support with a proper understanding of fundamental analysis.

Secondly, each pair of currency is like a course that may take you weeks, sometimes months to study. I suggest you start by concentrating on a few pairs of currencies. Two or three pairs for starters. Make use of economic calendars and give yourself some time to learn the ropes.

Also, psychological training is very important in Forex trading. You must learn to control your emotions. The fact that a potential move feels right doesn’t make it right. These things are learnt with practice and time.

I once learnt from someone on this forum that you can’t fly a plane just by reading a book. Forex is not an easy way to make money. You have to dedicate substantial time and effort to learning. You will most likely make losses initially. Learn your lessons from each loss and with enough dedication, you will be successful.

Eveybody talks about resistance and support … but from my experience price go through them like they did not even exists… ! Maybe on very large time frames to be of some importance but not on 1 minute… ! Also there is no or very little info about how to trade on 1 minute or less using fundamentals… maybe is not even possible…! I like turbo trading … i would like to trade like 20-30 trades a day … and also using binary options in a few months I would finally make money… Otherwise why not doing any other job and earn maybe even more money than trading??

I minute chart is just a guide. I don’t think you should be placing trades based on it. You need to look at the bigger picture. Just saying.

There is no real advantage in trading Binary Options. The payouts are usually below 90% which means that you have to have a significant Edge in the market to be profitable long term. And if you understand the market well enough to have that edge, then you might as well trade spot and achieve a better R:R. Binary Options are an over simplified product that make losing long term almost inevitable.

And that is even assuming you successfully navigate the minefield of fraudulent purveyors to find a legitimate Binary Options broker in the first place.

Doom and gloom :expressionless:

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