Not at all.
If the buyers don’t show up the bottom may drop out
There are traders out there drawing all kinds of lines on their charts to explain the obvious - if the buyers are not there, the price drops.
So you went short?..entry after the current red bar moved below the prior green bar?
No, not at all. I am waiting for the buyers to decide it is time to “go shopping”. These are “bargain basement” prices.
The buyers must be on “vacation”.
Oh ya…you’re a buyer…lol…my bad! :o
Is it just your preference to take long trades only? Also, isn’t it the same to go short when prices are high because it’s effectively buying the 2nd currency of the pair?
One could look at it that way since we are trading currency [I]pairs[/I]. But you have to take into account the relationship between all currencies if you want to think about it that way. Sometimes pairs don’t move the way they are supposed to move based on the currencies that make up the pair.
Greetings. You haven’t posted often. Are you new to babypips? Are you new to trading?
None of these levels are “mine”. They just are what they are levels that have occurred. Previous daily and weekly levels work well for me. Nothing fancy at all. The indicator crowd is threatened whenever someone challenges them.
There are many big egos on forums. If you sing a different tune, expect to get flamed and insulted. That is just how it is. As soon as I start to win a debate, the name calling begins. Very childish behavior. I think people take the label under their name/avatar too seriously. They are not used to debating someone at or above their level.
The following shows you a common error that is abundant on trading forums:
Next time you are in another thread, dare to ask, “Are you sure? How do you know?”.
This weekly chart shows me the buyers are “thinking” about it. How do I know? I know because:
- the number of tails that the price line is “cutting through”. I count 4.
- the price is below the weekly open
- the price is below the last 6 weekly lows
- the tail is smaller than the candle body
I only consider the buyers. When the buyers show up, the price will go up. Otherwise, the price drops. In the USA it is Thanksgiving. Today’s paper was filled with sale ads. Last night, the radio announcer said people were lining up at Best Buy for the sale on Friday. The buyers are there for one reason only - the price is right. It is no different in Forex. The buyers line up for the same reason.
The buyers had a “change of heart”. How do I know? Price never went past the previous candle’s high. Instead price has moved back almost to the open.
If price gets above the previous candle’s low, the buyers have spoken.
There is no need to fill your charts with lines, dots, spots, arrows, rainbows or whatever else is being purported to be the next best trading method. Those who discuss price action the most seem to know the least about it. No matter where you plot a line on a chart, price is either moving toward the line or price is moving away from the line.