Supply and demand question

[SanMiguel]

Just wondering about the theory of bounces...what is going on in the market/traders' minds?
1 Sellers get in
2 Rejection off support
3 Who is selling here and why?
4 Bounce off support (classic time to buy)
5 Profit taking from buyers?
6 Some buyers stay in and bounce of recent resistance turned support line.
7 Profit taking buyers close turning into sells.

 

[foredog]

Funny that, Wasp's just posted a similar thread.

http://www.trade2win.com/boards/first-steps/60224-yeah-but-why-though.html

 

[MrMiyagi]

Just an observation, and sorry not to answer your question directly, but you sound like the type of person that could get a lot from Market Profile / Auction Market Theory.... Look into "Mind over Markets" by Dalton if you haven't already.. I had the same questions and found a great deal of insight in his and Steidlmayers books. Its not a system.

 

[dick_dastardly]

(1) Trend line violated at third touich, traders traopped inlosing trades, when nprice retutrns latyer on at (2) tradwer gets out at break even and those that got the market directin right earlier want another piece of pie ansd jump back in again so it becimes resistive.

I think the actual high of that reversal at R was pip perfect to the weekly high of two weekd ago.

So0rry i.ve had a sleeping pill and it's just bkicked in, tomorrow dudes

dd

 

[Technically Fundamental]

Heres how I look at things

What ya think?

 

[Rossini]

What does it tell you, is the more valuable question....

 

[Technically Fundamental]

Tells me that more highs are being tested than lows.
That all the people who jumped ship into euro (major players) are trying hard keep their portfolios valued at the current level by offloading positions slowly (into god knows where) which is responsible for the channel.
Tells me there's likely to be another topside move to smash through that narrowing channel to either test highs again or maybe find support which is daft because if cable and this "recovery" the indices is showing continues for the next couple of weeks are anything to go by euro is going to flop because its not needed.

This is all subject to employment figures and interest announcement though so who knows what will happen

 

[Rossini]

Ok, so then what are you going to do, using that infomation?

 

[Technically Fundamental]

Nothing... watch the chart go up and and retest the top of the channel line/ maybe break through it.

I'm not allowed to trade.

 

[Rossini]

You can paper trade though? TBH what I was getting at is, it doesn't really matter if your chart is meaningful to others, as long as it is to you. If it is meaningful to you, you can form a plan- if X happens I will do Y.

 

[Technically Fundamental]

Seeeeeeeeeen.

 

[Rossini]

what?

 

[Technically Fundamental]

"Seen." It means I see what you're saying.

 

[MrMiyagi]

what?

lol

 

[Rossini]

"Seen." It means I see what you're saying.

Sorry, we are posh this side of the water, im not used to all this hip lingo!!

 

[Technically Fundamental]

I'm from Toxteth

 

[MrMiyagi]

 

[Technically Fundamental]

I think that hip hop charcteurs are an indirect assault on and mockery of black culture.

 

[Rossini]

mr.marcus
''...actually the complete opposite is true...how else could you profit?''



I disagree, who cares what everyone else is seeing on there charts? I don't, otherwise I may as well go over to the guy trading behind me and put on a trade based upon his views of areas he believes could influence the future direction of the market. If I did this then I wouldn't have the same conviction of the trade. Look at it from another way, if I put on a trade for one reason and 100,000 people put on the same trade for a different reason does that make my reasoning invalid? I don't think so.

 

[Technically Fundamental]

just means you're not moving with the masses or the big boys. Thats a no no in trading.