Day Trading & Forex Forum

TheMoneyMachine

fxmarkets,

1. Technical indicators are calculated using different combinations of price and time, therefore they cannot "indicate" anything more than price & time alone.

2. Price is NOT an indicator it is the current value of the instrument in question that an entity(s)who wants to acquire it is willing to pay for it and vice versa for an entity(s) wanting to dispose of it.

TMM

jezza888

Or Just follow it blindly as the case may be!!

fxmarkets

I see your point, the price traded gives an indication of at what price how many transactions took place, I still look at that as an "indication" not an intrinsic fact of valuation.

TheMoneyMachine

Volume tells us how many transactions took place not price. Retrospectively price represented a mutual agreement between two parties for whatever instrument they were buying or selling. The present price is the potential for transactions to take place.

TMM

fxmarkets

hello mate, Yes I see your point but I dont look at price minus transactions, hence transactions and price part of the whole for me.

and "Retrospectively price represented a mutual agreement between two parties "
thats what i see as an "indication" of potential opportunities.

but with trading the word agreement can be used loosely, if you have a method that cuts you out, you may not agree to the price, yet you agree to being cut out on something other than price itself. You take the price no matter what it is maybe, this may leave you negative or positive.

fxmarkets

Moneymachine, could you post an example of a trade perhaps, that demonstrates price and time, method in action and thoughts behind it . even theorectical ones ?

TheMoneyMachine

Leave it with me fxmarkets, i will post some examples over the weekend.

TMM

JumpOff

I am also curious to know if anyone subscribes to the 'market profile' way of looking at time and price with regards to forex. If so, what do you use for time segmentations (I think standard tpo's are 1/2 hour in length), and what do you consider 'the opening' part of the day in a market that trades 24 hours.
JO