How to turn thrupence into a billion in 7 days

[wasp]

Hope you don't mind black-star, just played with your chart to make it easier to open and see

 

[SAINT]

Interesting post though Wasp. A lot of people enter the market and see it as very
electronic and mathematical but psychology plays a large part. The only indicator I
use is moving average. Otherwise, I use S&R.

 

[wasp]

Interesting post though Wasp. A lot of people enter the market and see it as very
electronic and mathematical but psychology plays a large part. The only indicator I
use is moving average. Otherwise, I use S&R.

Cheers Saint and agree many view it as an electronic and mathematical entity when its just buyers and sellers.

Whilst I will probably get slammed for saying this, I think the emotional part is an aside. I prefer to look at the chart and imagine a tug of war. The candles show which side is winning and the S/R levels where the one side found a will to stop and pull back till such time that that point could not be held any longer.

Bleedin' long bit of rope mind!

 

[dbphoenix]

A few things for newbies to consider before they have chosen the road down which they'll travel:

Price is independent of how we choose to display it. Whether bar or candlestick or box, anything that prevents us from tuning into the continuous flow of price is presenting us with an inaccurate picture.

There is no such thing as “noise”.

There is no such thing as a “close”, unless trading literally comes to a halt.

 

[DC STOXX]

There is no such thing as “noise”

EXACTLY!

 

[new_trader]

A few things for newbies to consider before they have chosen the road down which they'll travel:

Price is independent of how we choose to display it. Whether bar or candlestick or box, anything that prevents us from tuning into the continuous flow of price is presenting us with an inaccurate picture.

There is no such thing as “noise”.

There is no such thing as a “close”, unless trading literally comes to a halt.

I'd be inclined to say that there is no such thing as "support and resistance" either, that's kindergarten stuff.

 

[wasp]

I'd be inclined to say that there is no such thing as "support and resistance" either, that's kindergarten stuff.

Please feel free to continue....

Open discussion mr.marcus so feel free too!

 

[grimweasel]

Interesting.
I read a book once by Tom Dobbel and he made millions from OHLC Bars and a few MAs. As newbies there is a tendancy to rely on an indicator to back up one's reason for entry/exit. I still do myself. A city mate said all they use is Fibs/Key S/R Levels and trendlines. Nothing else bar the occasional indicator!
Mark Douglas said that a trader needs to get into the ' now moment opportunity flow' to feel the market. I guess by only using price action you begin to 'feel' the market.
To adopt that 'feel' would you say it would be better to become a master of a few markets rather than a jack of all trades?
I also read a guy made millions only trading one share in the US over 40years. He just knew the company and price action to news etc inside out.

Using this theory do you still use 'inside bars, outside bars etc' or does that back up the battle ?
Grim

 

[Mathemagician]

Very interesting thread! Made all the more interesting by the fact that I do things very differently. Wish I had more to offer...

jj

 

[DC STOXX]

I'd be inclined to say that there is no such thing as "support and resistance" either, that's kindergarten stuff.

I disagree, so can you explain yourself?


If a stock bounces off a price 45 times in a sideways market at $100 for example, how can you say that a buyer/buyers are not providing support for the stock at 100?

 

[wasp]

support and resistance

Useful attribute to watch IMO

Extremely informative and much more information than any indicator...

I'd be interested to see any others take on it...........

 

[nine]

How to turn thrupence into a billion in 6 days

First you need to do the preparation

 

[wasp]

Maybe some discussion on it would help?

First you need to do the preparation

What You don't mean learn, dscuss, study, watch, experience and through time and others thoughts understand what the chart is telling you about the parties on either side of the bid and offer and what they are actually doing and seeing what the candles /bars /P&F /line actually tell you.

Well I never......

 

[wasp]

I noticed that there is a missing spot on the fruit stall. Something's already sold out. Supply / demand springs to mind. Oh - you meant that charts right? Well first thing that stuck out was the two failures to capitalise on periods with large range and new lows. Once that happened a couple of times I can see weak shorts getting taken out. Sure enough, price action turns in an orderly fashion.

But of course it's all easy to call after the fact and I don't generally like to do stuff like this. Plus I personally look at different factors that are specific to my market and as such won't feel comfortable just plonking myself down in front on an unmarked chart and calling the shots. I know there are people who say that they could look at any chart and just trade it, but I don't count myself among those people. Happy not being a pure technician though. Seems to be working out ok.

GJ

Cheers for your input though GJ, always good to have an institutional POV, especially one who could be, or his colleauges being the ones helping to move the thing.

This thread is in the first steps for a reason. It is mainly here for newbies to understand what to look for and what they are looking at. Its all well and good experienced traders spouting 'price action' over indicators but we need the threads discussing price action to weave them off the wrong path.

This is why hidsight analysis is fine because despite it being blatantly obvious now, its a heads up for the uninititiated to know what to look for. Also why its good to have multi views from different members as as shown already, many don't agree on even the simplest of things.

Just for informations sake, being in the position your in, what other factors interest you being institutional?

 

[barjon]

Useful attribute to watch IMO

Extremely informative and much more information than any indicator...

I'd be interested to see any others take on it...........

hi, wasp

Rather too many lines for my taste

I try to build up s/r zones rather than looking at lines - hope the chart shows how they build up.

Allowing for the 20/20 vision of hindsight here's my take:

1: The pretty steep retracement halted pretty near earlier minor potential support that starts the zone between the two lows which is extended a bit by the higher low of the next candle which was fairly strong upward. And extended further by the higher low of a re-test some 7 candles later.

2: Price comes back to this zone and burst through it only to spring back to close well clear - has to be a good long entry around here somewhere (maybe from trader dante )

3: Price rises to reach and enter a potential resistance zone that built up which would have been an initial target for some lightening up of long position.

4: Price comes back to support zone and eventually drops through it without managing to clamber back - there's a short here somewhere.

As I say, 20/20 hindsight is lovely!!

good trading

jon

 

[SAINT]

Simply put, the one or two factors that the FX market is concentrating on can vary from day to day and even hour to hour. Main thing is just to know what people are looking at. Sometimes it's obvious, sometimes less so.

GJ[/QUOTE]

I'm with you Gamma, I prefer to read everything I can on the market. 'Think like
a fundamentalist, trade like a technician' as Dennis Gartman states in his rules.

Some days it's easy, some days less so, but you have to make more when you're right.
Going back to the intial idea of 'electronic game'. People sometimes have a desire to
make it mathematical- I buy x lots at x signal and make x amount per day all year.

 

[rols]

I would like to join in this discussion but I fear many of you are looking for black and white answers, certainties at which to grasp or place a foot hold.

IMO the only important considerations are how we perceive the market and how we interpret these perceptions.

One misperception for example is that a financial market is like a fruit and veg stall.
Wrong. Most price action is due to traders exiting positions.

I don't remember seeing anybody trying to resell their cabbages after having bought them a few days before. They usually go home, fry them up with a bit of butter and eat them.

 

[wasp]

Every opinion is worthwhile (wih content) Rols and more the merrier so please contribute further.

I don't think anyone, nor I starting the thread, were attempting to find a black and white solution, far from it, in fact the point was just to get newbies to study price and read between the lines, understanding what they are looking at and understanding it is PEOPLE, not a machine.

Whilst it may not be a fruit n' veg stall; without floors these days, its the closest example to make members think of traders, not some machine or it.