The Forex Store

Malcon · January 22, 2010, 1:39pm

Euro buyers liked today’s sale price, didn’t they?

Malcon · January 22, 2010, 1:46pm

Lower high, lower low, go with the flow

Master_Tang · January 22, 2010, 3:22pm

Move along.

Malcon · January 22, 2010, 4:04pm

The daily flow happens at the daily open, right?

Master_Tang · January 22, 2010, 4:21pm

There’s always a daily flow. Sometimes 2 or three. Sometimes it happens at the open, sometimes it’s delayed, and sometimes it’s just confused altogether.

Wasn’t the point of the strategy to trade in the direction of the flow as it crosses the weekly open one way or the other? In this case, that element was lacking. Or better yet, nonexistent.

Malcon · January 22, 2010, 8:19pm

The point was to identify what is on sale by looking at the weekly charts and then follow the buyers.

Shr1k · January 22, 2010, 9:06pm

Wasn’t the point of the strategy to trade in the direction of the flow as it crosses the weekly open

Yes

The point was to identify what is on sale by looking at the weekly charts and then follow the buyers.

And yes
This thread/strat lacks any consistency The best advise here is to manage your open trades to maximize profit and minimize loss.

poca · January 22, 2010, 9:24pm

I stopped reading this thread and my trading improved.
coincidence?

Malcon · January 23, 2010, 12:16am

What would be an example of consistency?

joe09 · January 23, 2010, 12:03pm

so true

Malcon · January 23, 2010, 12:37pm

The fallacy of Non Causa Pro Causa occurs when something is identified as the cause of an event, but it has not actually been shown to be the cause.

The fallacy of Post Hoc Ergo Propter Hoc occurs when something is assumed to be the cause of an event merely because it happened before that event.

[B]You stopped reading this thread
Your trading improved[/B]

is no different from

[B]You stopped picking your nose
Your trading improved
[/B]

poca · January 23, 2010, 12:52pm

neat, but i’m going to stick with 1 caused the other.

Malcon · January 23, 2010, 1:54pm

xtraction:

Forex is a market place where currency is bought and sold. Think of forex as a currency store. Every now and then, currencies go “on sale”. You can buy them “cheap”. A couple of weeks ago the USDCHF and USDCAD were on sale. Buying currencies when they are on sale can prove to be very profitable. Usually, in a week or 2, you can sell them for hundreds of pips profit. I haven’t seen any thread discuss forex trading this way so I started this one.

It would be nice if the “technical indicator” crowd would refrain from imposing their views here. You have more than enough threads to talk about all the things you talk about. This is a place to discuss currencies that are currently “on sale”. That is the only jargon that we need here.

Let’s define “on sale” as when price has made a new weekly, monthly, yearly or all time low. That means it is time to watch how the traders react. Are the sellers pushing the price down or are the buyers buying up the currency and making the price go back up?

There may be many days in a row where no currencies are on sale. That doesn’t bother me. It is not a problem to wait to make hundreds of pips. I’ll wait for weeks for something to go “on sale” at Old Navy or Sears so why not do the same at the forex store? I only pay full price when I have to like at the gas pump or when I run out of eggs and have to have them.

A reminder.

Malcon · January 23, 2010, 1:55pm

xtraction:

I don’t know how many people still get/read newspapers. But on Sunday, the paper is filled with sale ads to entice the buyers to come out and spend money. I look at forex the same way. The charts are like sale ads. When I see something that I want “on sale”, I’ll buy it.

I alter the fib retracements drawing tool to show the 10, 20, 80, and 90 percent levels. When price is below the 20% level, it’s “on sale”. If the weekly candle is red, there is no need to hurry. Price may keep dropping. When the weekly candle is green, it’s time to “get your shop on”. Please forgive my slang.

The last green weekly candle shows the shoppers liked the “sale” on USDCHF. Glancing at the chart, it’s apparent that when USDCHF goes “on sale” the buyers drive the price up. That’s why I wait for currencies to go “on sale”.

The market is closed. Time to see if anything is on sale.

Malcon · January 23, 2010, 1:56pm

Sale or No Sale?

Malcon · January 23, 2010, 1:58pm

Sale or No Sale?

Malcon · January 23, 2010, 1:59pm

Sale or No Sale?

Malcon · January 23, 2010, 2:01pm

Sale or No Sale?

Malcon · January 23, 2010, 2:09pm

xtraction:

When I go shopping, the idea to buy cheap. Something is always “on sale”. That is where the focus is placed. The answer to your question is no. It is better to be really good at one thing than mediocre at a bunch especially when it comes to trading. I do fine at buying when a currency is “on sale” and the price is above the weekly open. The weekly chart isn’t much to look at. There is nothing fancy to put on the chart. Most traders will skip over this or try to add some razzle dazzle techy indi but everyone knows how to shop for sales, don’t they? What else do you need?

In hindsight, it looks like you can buy low and sell high with ease. It’s not so easy while the price is moving when the market is open. When you try to “Yo-Yo” the market, it’s easy to get caught on the losing side. “Yo-Yo” sometimes means “you’re on your own”. Just in case someone isn’t familiar with the term yo-yo, it’s a toy that goes down and up and down and up on a string. Originally, a yo-yo was a weapon.

Can’t wait to watch the usdjpy this coming week.

The waiting begins.

tjfxtrader · January 26, 2010, 8:19pm

The edges keep getting tested. Waiting for the reversal.