Why does my trade cause a reaction

Thanks. I am discretionary trading, watching for price action. And then joining at market price. I use the small time frames for better entries.

So let’s say I identify a pattern and it about to breakout of that pattern to the upside. I place a market buy order, price hits that price then it won’t rise further and turns down. I then decide to close the trade thinking I’ve been trapped and close the trade for it to immediately go in the original direction of the break out.

You have to remember that the market is huge and there are millions of trades taking place simultaneously for a multitude of different reasons.

One extreme might be a pension fund placing millions in a new long term position or a company funding a massive project in another currency - and at the other extreme an algorithmic-based automated trading program buying and selling huge positions for a few pips.

Then there are the likes of us here on BP whose position size is about as relevant as a fly dirt on the side of the Empire State Building - the retail trading community. As a whole, there are probably as many traders buying and selling at every pip as there are trading scenarios. Some are entering , some are adding, some are closing etc, etc, etc.

You are just seeing the vibrations in the waters as the markets vibrate in tune with all the variations taking place. On a seconds-based timeframe there is no logic behind the individual swings whatsoever.

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Personally, I have no experience of trying to trade patterns on 30 sec/5sec charts, but I suspect they would be far less relevant or reliabIe compared with say Daily or 4H charts.

You say that you “identify a pattern and it about to breakout”. But surely you wait for the breakout to actually occur and not pre-empt it in anticipation of the breakout?

If you are doing this, then you are possibly buying, hoping it will break out, whilst others are selling on the basis that it is on the boundary of a pattern and might therefore reverse there? That may well account for some price wobbles around those pattern edges?

Lol :rofl:

Sorry for laughing but it’s so comical. We All feel like that sometimes - especially at the beginning !

It doesn’t have to do what you want it to do ! - Mostly it just plain won’t !

The rule is pretty simple really - "It just goes up and down !"

That’s all - if we knew where it was going - we’d all be rich ! :wink:

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I am aggressive when i identify a breakout opportunity and buy market price rather than conservative. Because what I tend to find is that once it breaks out and I try to join the breakout it does what I’ve been describing early on which is that price doesn’t continue rising it reverses shortly because you’ve said that its normal. Then when I close because it’s coming back down it go up again.

I am aggressive when i identify a breakout opportunity and buy market price rather than conservative wait for confirmation. Because what I tend to find is that once it breaks out and I try to join the breakout it does what I’ve been describing early on which is that price doesn’t continue rising it reverses shortly because you’ve said that its normal. Then when I close because it’s coming back down it go up again.

Does it have anything think to do with my market trade if I buy there too many buyers.

It has nothing to do with your own trade whatsoever. Your trade is simply with your broker and he is only monitoring his overall exposure. He does not match your trade direct with anyone else at all.

Your broker is your counterparty. If your position size was (very large indeed) too large for comfort then he simply lays off the risk into his interbank liquidity providers on the other side - and that, from your trade size perspective, is a bottomless pit of liquidity.

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Yep, you and a few thousand more right at that point.

The second you hit the buy the bottom right of your screen turns red, and the broker’s number turns green.

It’s for this very reason that brokers change the spread according to market conditions, their software calculates the likelihood of loss and adjusts accordingly - they provide a service and it has to pay.

When you extract yourself from those seconds then the market can take over and the broker will move from being a bookmaker.

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you are maybe into something
use A demo account and do the opposite of what you were doing

And then learn?

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Because you enter the market at a wrong point of time-there is something wrong with your entry-decission

Have you ever considered just doing the opposite, if it happens that frequently. Sounds like a pretty decent edge to have if it happens all the time!

If you read the post it says when they put a buy it reversed then they cut the trade but it then goes back up in the original direction so doing the opposite wouldn’t be an edge…
My guess is it’s droped a few pips they got spooked and closed too early simple as that.
But they never answers my question of how many pips did it go before they closed it so i can’t say for sure.? Is there such a thing as traders OCD .?

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So if you did the opposite you would not be trading… better than loosing money :wink:

Come on there has to be losers for us to win ,:alien:

Mate; may I know the number of months you are trading actually? But, don’t worry because it’s very common mistake from the newbie’s. In addition, now you need to gather FX knowledge.

Perhaps, there are tutorials that have been missed. Please ask your teacher about the problem. I think you’ll find a solution as soon as possible.

I think the OP is looking for us to back up his suspission that the broker is manipulating the price movements to make him lose.
Which indeed may be the fact (depends on what/which broker he’s using), but I highly doubt it. Especially, if it’s one of the big, regulated and trusted brokers.
Like @anon46773462 and @tommor said above - at that timeframe it’s pretty much brownian movement.
Never the less, OP should look into the broker’s order execution, regulation and the feedback other people who’ve used it have to say. If the overall feedback matches what you’re feeling - move on to a new broker.

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I am with CMC markets, and I do really think that their trading against me on the smaller time frames.

most of you guys are probably trading on higher time frames and have limit orders. so are probably not seeing what happens on the smaller time frame at market limit orders ?

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You are not alone in this field who feels like this . Almost all experience when they do any action for trading market does reaction against them . Actually market is unpredictable , so when we place an order may be next market movement may not in our favor. All is needed to manage your trade at t hat time to control risks.