Hi mp 😆,
Forex market phases, patterns etc. Interesting .......
The value of knowing WHEN the market changes directions is as important as to where your support and resistance lies --- fortunately, it lies with all trading vehicles and can be learned easily simply by observation. As a manual trader, I play the morning game and after noon (except on day one of a strong trend) do a "set and forget" trade off of the 30, H1 or H4, depending on how long i want to wait to get a good meal !
I guess what you describe above is the opening gap phenomenon, yes?
Those words are not known to me, as the only gap Im usually aware of is on day 3 of a move --- more with equities than with forex though !
Then it gets filled as per your quote above.
Maybe yes, maybe no ---- depends completely on the trend, when the trade was entered, and how much the price moved away from it. I can tell you on a real trading day, but not with a general question, unfortunately !
Well hopefully the idea of using stops is to prevent the "all gone" state of affairs.
YOU CANT BELIEVE HOW LONG IVE BEEN WAITING FOR YOU TO ASK THAT QUESTION !!!!!
My current teaching, along with a few others who have explored this situation, is that stop losses HURT you and do not help --- stop losses are there for those who DO NOT KNOW what they are doing, cannot establish a daily, weekly or monthly trend, or even an intraday one --- with only the smallest amount of experience, I have seen newbs go from silly losers to very nice winners, simply because they didnt lose their money to a stop loss ! Its a foreign concept, I will agree --- BUT lets take this as an example --- you enter long near the US open, but your tp point is higher than your pair reached since your broker saw it would cost him 3 billion dollars if he hit your tp, so he (she/it ?) reversed the uptrend at 11:15, which had all the banks screaming, but he was the top dog that day and could get away with it. Now you face the currency making a kamakazie dive for support from 3 months away, when the share price was 1/3 of todays price.
Somewhere along that dive, your stop loss is gonna get creamed, and your billion dollar profit now becomes a billion dollar loss. You look around the prop shop youre working in, knowing the Mafia supported owner is gonna break you like a snickers bar, your life flashes before you, and you sink to your knees whimpering "mommy -- help !"
OR, with NO stoploss, you could watch the dials on the depth guage revolve lower and lower, light up your cuban cigar and wait contentedly because WHAT GOES DOWN ALWAYS COMES UP ! Knowing this you could average down, once or many times, and when the day ends you have tripled what would have been your billion dollar gain, your Mafia supported boss is beaming, and you are awarded the title of "consigliatorei" with all the rights and rewards that go with it !
THATS why i dont use STOPLOSSES !
Are you saying generally all forex pairs trend to some degree, or are you referring just to the major pairs?
ALL forex pairs trend, just that some can make the trip in 2 days and some in 2 weeks --- Put up an LRC (linear regression channel) or use the custom indicator "true SHI" (which does the same thing) AND watch what happens as the currency pair makes its way to the TOP of the channel, then reverses back down to the BOTTOM of the channel, and check it on the daily, weekly and monthly charts --- it will show you WHERE your pair is heading, and when you get good, will even tell you how long the trip will probably take, like one of those Japanese auto robots !
I'm just demo testing TRO's BUY ZONE strategy which uses a horizontal line drawn at the open of every hour. So every hour you trade, you set up new zones.
I think perhaps your comments are more in line with the daily buy zone strategy which I believe is where the hourly strategy came from. Maybe TRO can help me out here?
Im sure he can, but minute by minute, hour by hour or daily, the concept is the same.
Well the limited amount of results I have so far Mondays and Fridays have been where the most points are lost, wouldn't say they were any tougher though. They're just the same as the other days; essentially you take the entry, set the stop and exit on the target or when your stop is hit.
ok, wont fight on "tougher" but they can be a bit more flakey, as on monday everyone has finished blowing coke over the weekend and now get shakily down to business, and on friday, everyone has BOUGHT their coke, and want to get the heck out of town, invariably with someone elses wife, and blow that stash again ! (which of course now leads us to monday, but you already know that story !
Fridays, naturally is the "wash up" day, and traders bail their longs or cover their shorts, but its usually a pretty strong and decent trading day because its trend is usually only one sided !
I am very interested in improving my feel for the forex market patterns, many thanks for your information mp.
Now that Ive explained every trading market in the world, can i get back to trading --- Ive got to make some money for my clients also, you know !
Best Regards,
Neil
