“if price is low they try to buy and sell if it’s high. I don’t understand this bit”
I have given the reasoning behind this. keep learning the material, no rush. Think about this example…
We call it a “Market”. If prices have gone [I]down [/I]at your local produce market, would it not attract you to [I]buy[/I]? Lack of demand along with their supply would cause them to lower prices (down trend). It attracts buyers [I]eventually[/I] and is shown as an increase in activity along with a stop in the price decline. (stopping volume)
It’s all driven by fluctuation in the supply/demand. If a large player wants to buy E/U and there is no supply at that price, price will move up to find supply and fill his order. He’d be better off buying in blocks against selling at what he thinks is the bottom of a swing (accumulation/reaccumulation).
yes it would make sense in a market. The thing is these are currency pairs so if the pair is say the eurusd you look at it from the eur perspective right? Cos if the eur goes low the usd goes higher correct? I forgot what you call the currency in front of the pair.
Trading in the shadow of the Smart Money was good for me, and also Trading in the Zone. Stock Market Wizards was also a bit insightful to other traders and their methods/mindsets etc
I to find this VSA confusing. Just from the videos it is confusing. But in his threads, Pete’s threads, I get a better understanding of VSA. Try reading his threads on his explanations of the video’s. I think because we can’t actually see something being sold or bought is what makes it difficult to understand. looking at volume and price action on a chart is much more difficult to understand than buying or selling at Wal Mart. The thing that gets me is if Forex is a free open market, meaning that anyone can trade there with very little capitol, due to Retail Brokers, I can’t see where supply and demand would matter. If you have money coming in on a constant basis or buying orders then how could you monitor it. Without having a large database of all the Forex Brokers and there clients. But I guess it does show in volume.
It may feel a bit confusing for a little while, but there really is that lightbulb moment where it all comes together and you are able to “see” clearer.
Keep at it, you will pick it up with perseverence. A person does not need to be overly smart, they just have to persevere and be patient with their learning. At the end of the day, it will be worthwhile.
I have been on this journey for about 15-18 months and have learned so much - and enjoy it as well
edit: i was wondering where you guys thought AUDNZD would go and why. im paper trading, but i sold at 38.2 fib retracement and again at the 50. i shorted because it seemed as though the 38.2 fib was holding well (is also the daily pivot). sorry, not quite sure how to post the chart.
Basically. We’re looking at the relative value between currencies. The E/U pair is a measurement of the Euro’s value against the US dollar. So if the US dollar is going down in relative value (incoming supply of USD) it would translate into an up move for the pair. It’s one compared to the other.
I think the term your looking for is “base” currency.
And…if you want to know what is driving a particular pair use correlation. Let’s say the Eur/Usd made a strong up move. I’m looking at G/[B]U[/B], A/[B]U[/B] etc. to see if that move is correlated. If it is, and those pairs have moved up as well, then we KNOW that it’s a USD driven move. The USD lost value, driving other currencies up in their relative value.
I can also refer to the [B]Eu[/B]r/Gbp, [B]Eur[/B]/Jpy etc. to see how the Euro is behaving separate from the USD influence. If it is generally flat for example, it would be confirming that the E/U up move was USD driven. USD driven moves are my personal favorite.
Been looking at the truth behind price movement video. A couple questions. When you say the smart money is buying into selling pressure, with tic activity on higher volume and orders. When you say orders are being placed does this mean that the smart money is placing trades on selling pressure or just putting money and orders in that haven’t been placed yet. If candlesticks are small on down moves with high tic activity then these orders by smart money haven’t actually been placed. In another words more money is there but not actually being used. Placing orders should show in the candlestick, right. If more orders have been placed then wouldn’t the candlesticks be higher. Is this a correct assumption.
SM are buying in blocks as price moves down so they do not mark up price yet. Remember, what we call SM is actually a handful of entities (maybe 25 or so) with huge capital.
You said “If candlesticks are small on down moves with high tic activity then these orders by smart money haven’t actually been placed.” Not sure I get your reasoning there. It shows SM aggressively buying against others selling.
The AMOUNT they buy is affected directly by the herd selling amount. Meaning, they don’t buy enough all at once to reverse price yet…candle wise and swing wise. It’s like saying…how much helium can I get into this balloon before it starts to go up. If you put the maximum amount before a rise up (higher close), then you would get a doji if you take my meaning.
I see you are really trying to understand…that’s great. It takes time. I’m sure you will get there.
I usually have to understand the root meaning before I can understand the whole picture. I’ll let this sink in and read some more of your threads, a little more in depth. Thanks!
With this answer to Pingback question it looks to me that SM know exactlly or better see exactlly all orders that are short… It is true? SM have all informations of our orders??
what broker are you guys using? i understand that ibfx is good for volume, but what do you use for orders? i plan on going live by the end of the year but finding a decent broker is such a pain in the ass.
I use IBFX for charting, but GoMarkets for my actual account. I’m on the GoMarkets pro account. Spread normally below 1 pip and you pay a small spread as well. Overall, it is better than the GoMarkets normal account.
Most of my EU trades would be between 0.6 and 0.8 pips
