Yeah, but why though....?

This is a discussion on Yeah, but why though....? within the First Steps forums, part of the Reception category; At a bit of a loose end waiting on a call so to pass the time........ Double tops Double bottoms ...

Reply
 
LinkBack Thread Tools Search this Thread
Old May 1, 2009, 10:31am   #1
 
wasp's Avatar
Joined Aug 2003
Yeah, but why though....?

At a bit of a loose end waiting on a call so to pass the time........

Double tops
Double bottoms
Higher Low
Lower High

As we can see, on the chart, pretty good indications, in any TF, of whats going on, where trends are ending etc etc...

Why is it though? Pretty darn obvious and too easy surely? Who causes it to be so perfect? I mean, for all the talk of big boys trying to skew n00b's into the opposing direction, why make it so obvious...?

DT/DB's are pretty obvious levels for buyers/sellers to step in, I guess the HrL/LrH scenario is to reverse it short of those with orders at the prior high/low areas, so it reverses without it hitting....

Just pondering whilst killing time... anyone any thoughts....?
Attached Thumbnails
ex.gif  
wasp is offline   Reply With Quote
Thanks! The following members like this post: KillPhil08 , ianp , firewalker99 , brutusdog
Old May 1, 2009, 11:00am   #2
 
foredog's Avatar
Joined Oct 2007
Becasue a lot more of the Business going through the market is proper orders not just brokers trying to screw "the little people"

If you have a seller of 10m (or whatever) at X then they will probably dribble it out at a few ticks above/ below in lots of say 10000, if there is an appetite then they will trade up to there a few times but not break, when the order is finished the buying carries on.

The pullback from X price will be other sellers and speculators as the price has failed to break X selling it down before the buying outweighs this and takes price back up to X.

Why does it sometimes break X and then pop back?

The large seller has finished and reported back 10m done, client says OK sell another 5m at X so price is pushed back down to X
__________________
IF IN DOUBT GET THE **** OUT!

No need for a course http://www.trade2win.com/boards/gene...tml#post707344

Simple cable system http://simpledibs.blogspot.com/ http://www.trade2win.com/boards/trad...side-bars.html

Last edited by foredog; May 1, 2009 at 11:02am. Reason: typo's
foredog is offline   Reply With Quote
Thanks! The following members like this post: wasp
Old May 1, 2009, 11:06am   #3
 
trendie's Avatar
Joined Jan 2004
but it isnt obvious, is it?

the point at which you draw the line must be at least 1-2 bars after the event has taken place, surely?
the price has to move some distance away before you accept it is a genuine trend-change.

unless you drew the lines tentatively, and anticipated a change. which, later on manifested itself.
under those conditions, some trades would have failed.
then, the factor, or how far against you are you allowed to let price go against you before deciding to stop-and-reverse.

the other thing is the line you draw indicating HrH DTs etc are not necessarily the points you enter at.

this perceived simplicity does my head in.
__________________
# If the only tool you have is a hammer, you tend to see every problem as a nail - Abraham Maslow
# There are 10 kinds of people in the world; those that understand binary, and those that dont. -Anon
# Ed Seykotas Whipsaw Song http://www.youtube.com/watch?v=LiE1V...Wlxk8&index=10
# Defeat is temporary. Giving up makes it permanent. Anon
trendie is offline   Reply With Quote
Old May 1, 2009, 11:06am   #4
 
wasp's Avatar
Joined Aug 2003
wasp started this thread No question per se Hotch, more a thread for discussing why price does what it does and where and when and musings along that road to put context behind 'labels' for newbies, much like foredogs great reply....

The how to draw a line is easy Trendie, its the context that makes it come together.. .the why it/they did it...
wasp is offline   Reply With Quote
Old May 1, 2009, 11:09am   #5
 
Hotch's Avatar
Joined Jul 2008
Well, that's how the market works. I don't think it can't be any other way.
__________________
I'm just the guy that never tried, I'm just the stupid **** with brilliant luck and sometimes a bright idea.
Hotch is offline   Reply With Quote
Old May 1, 2009, 11:12am   #6
 
wasp's Avatar
Joined Aug 2003
wasp started this thread
Quote:
Originally Posted by Hotch View Post
Well, that's how the market works. I don't think it can't be any other way.
Yes, agreed, but this thread is here in the first steps for newbies to not just look at a chart and say > that line = double bottom thus it should go up... put some context behind why 'double bottom' or 'higher low' so it makes sense....

Who caused it?
Why did they cause it?
Why not double bottom?
Why not Higher low?
Was that drop lower stop hunting or exploring to see if more downside?
wasp is offline   Reply With Quote
Old May 1, 2009, 11:23am   #7
 
wasp's Avatar
Joined Aug 2003
wasp started this thread Do you never think...

Double bottom possibility here... Whats really going on?

or, is it just...

Double bottom possibility here... ker-ching!



Maybe I'm on the wrong website?
wasp is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
Cable - Yeah Baby! *JDR* Forex 1 Mar 3, 2008 1:14pm
50bps cut - yeah baby!!! RichieE General Trading Chat 18 Feb 1, 2008 10:54am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)