Baruch's Forex System Journal
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Awesome movement on the euro today..
I noticed that whenever there is no news and stops are triggered... there is always a huge amout of buying that will lift the market up a huge amount usually near or above the breakout level.
Its almost as if the big traders are pushing the Euro to take out stops and make it drop really hard near a key support level.. and then they come in and load the boat and soak up the huge supply around the stop levels.
Do people trade like this for a living?
--MIKE
I noticed that whenever there is no news and stops are triggered... there is always a huge amout of buying that will lift the market up a huge amount usually near or above the breakout level.
Its almost as if the big traders are pushing the Euro to take out stops and make it drop really hard near a key support level.. and then they come in and load the boat and soak up the huge supply around the stop levels.
Do people trade like this for a living?
--MIKE
The only difference is that when there is news especially eco# data then all the rules dont apply... and support and resistance and stop levels dont really matter.. because the market will go crazy.
--MIKE
--MIKE
I fundamentally disagree, no pun intended.
Charting is, for the most part, about direction, support, and resistance.
Support and resistance is displayed by places price wants to go or does not want to go. You can't "cross" a price bar through a trendline, saying that's support or resistance, that is paradox. If you want to have a valid channel, it has to orient itself on the outer most part of the range, and in a way that fits both sides.
Art? I don't know about that. I've been in the art industry, I still am a designer and have an art business. I design and paint and make music, you name it. I've read hundreds of books on art. My girlfriend is an artist. I have art all over my house. I've even created crazy "chart art". Downstairs, I have an entire room covered in charts. But when it comes down to it, I don't think charting is really art. I so wish it was, but I'm afraid it just isnt'. Charting is pretty dry stuff, down to logics and probabilities. Just ask some friend to look at your screen and ask him if he thinks it's art!
Seriously though. I'm not saying this out of mere opinion, but because I've backtested a myriad of ways to chart things, particularly retracements, trendlines and channels. There are ways of doing it that are statistically more reliable than others. Those are the ways that work best...
But of course it's up to you to do your own backtest. Do whatever works for you. I won't ague.
Hope you did well on your long!
S
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