fxmade2trade
Active member
- Messages
- 229
- Likes
- 6
Most traders think the market will turn around if they hold on to their positions. For the most part, they are correct and successful at doing so. Traders do have a technique; they have a strategy and rely on all kinds of information, trends, and data, fundamentals a trader will preach. You can waste days, even years reading traders tips, and articles. These are all opinions; you cannot predict environmental or political changes. You could follow the scripted rules of trading such as. “Keep the money and the trades moving, find a strategy and stick to it,buy low, sell high, and my personal favorite, rule number one, make money, rule number two repeat number one”. Most trading information is just peoples ideas of what will happen, and charts are only a small part of the art form that is trading. Right now, the metals market is volatile and bearish and trending downward, silver had hit its lowest in four years. Is it an oversold market? Is it the suppression by the central bankers? Volume is shifting the market and playing a major role in all of this. Looking at the charts, there seems to be no indication change is in sight for metals. Even looking at a sixty-minute chart, where you can see the fist indication of any movement, none is in sight. My thoughts are timing truly is everything, let us say you have the ability to move the market, and not really play by the Comex rules. We know certain times of the day traders are much more active. 11 am is the highest; the lowest is around 5 pm East Coast time. The lowest time is when less people trading, so it takes less volume to move the market. Looking at volume should be key to making your move. Volume can indicate the hidden agenda of the “rule breakers” they may be playing on something we do not see. The public will react to the volume change. Humans they know are surprisingly predictable, you can bet the billions of dollars spent yearly on the psychology and sociology of marketing teams will guide those major players’ trades. They are not just trading in the market they are trading the conformity of human nature not. As a trader, you need to look at all the information out there differently. Say you are an art critic, a chart would be an abstract painting anyone could interpret it in so many ways, seeing all the different aspects and beauty in the way it looks. However, “market activity” is what it is, it does not lie, that is a huge indicator on what move to make. Volume con be controlled to an extent, for instance, we do not see the low in xau/usd that we do in xag/usd. Indicating the buyers are refusing to let the sellers take it lower, you can see this by looking at the volume. This is only some information; let us not get ahead of ourselves by believing that the downward trend is at an end. All this shows is the buyers won this round.
http://depthtrade.blogspot.com/
http://depthtrade.blogspot.com/
