Also, Peter Brandt in his book "diary of a professional commodity trader" was talking about how slippage/spread is what the broker is making on top of your comish and that it's unethical for brokers to be greedy by taking advantage of slippage/spread from customers. Can anyone expand on this as I have never worked on the broker side of things?
CL Redux
- Thread starter schizo
- Start date
I didn't know the broker was involved in anything other than commissions.
Isn't the spread determined by where traders place their bids and offers?
The way I interpret Friday's slippage at a break of the pre-market 96.59 resistance level is that it's a very key level. It's the previous swing high in the 60-min time frame and price managed to make its way all the way back to it after a rapid breakdown of the previous 60-min swing low and the swing low of two days ago.
By 11:10 ET, buyers are now clearly in control and intraday traders should only be holding trades to the long side, with any short trades being strictly for small scalps. There just aren't any short signals; it's a strong well-defined uptrend.
By the time price makes it all the way back up close to that high just before the pit open, what reason would anyone have to sell right near that price? At the very least there will be a good stop run as stops trigger into market orders, so offers will suddenly thin out in the space between 96.59 and 96.69 (usually there's a brief pause at +.10 through a a key level unless it's a news-based price run). I don't think brokers have much to do with this. It's mostly programmed trading, no?
Isn't the spread determined by where traders place their bids and offers?
The way I interpret Friday's slippage at a break of the pre-market 96.59 resistance level is that it's a very key level. It's the previous swing high in the 60-min time frame and price managed to make its way all the way back to it after a rapid breakdown of the previous 60-min swing low and the swing low of two days ago.
By 11:10 ET, buyers are now clearly in control and intraday traders should only be holding trades to the long side, with any short trades being strictly for small scalps. There just aren't any short signals; it's a strong well-defined uptrend.
By the time price makes it all the way back up close to that high just before the pit open, what reason would anyone have to sell right near that price? At the very least there will be a good stop run as stops trigger into market orders, so offers will suddenly thin out in the space between 96.59 and 96.69 (usually there's a brief pause at +.10 through a a key level unless it's a news-based price run). I don't think brokers have much to do with this. It's mostly programmed trading, no?
Maybe to pick up the 70-80 ticks that followed to the downside?
But I get what you're saying. I've noticed though that when everyone's looking at the same level, like that 96.59, and price gets there in a "jump" move (IOW, not probing and teasing at the level first) that often means the level will get rejected. It's as if the market's saying "you better be on your toes and ready to fade this breakout b/c the ideal price is not going to be available for long".
I understand that, but price was in a strong uptrend and when it broke through the previous swing high on the 5m chart, the noon bar high of 96.39, the next level to be tested was the pre-market high of 96.59, which was a very key level in a higher time frame. There was airspace between 96.39 and 96.59.
The 1min bar at 12:57 was basically a train where nobody wanted to get off at Station 96.39, meaning the next station was 96.59 and the professionals who might want to sell into strength know that there is a large number of buy stops above 96.59, so it makes more sense for them to place offers further away and say "Catch me if you can" thereby lowering the risk in case there's a true breakout (which is very rare on the first go at resistance in what is now a very wide range on the hourly chart).
The 1min bar at 12:57 reflected a very fast market, therefore a lot of slippage at breaks of each level in line (96.39 and 96.59).
Callmate, HTH are you and WTH have you been?
CL, WTH is this crap!
There's good airspace to Thursday's high above but everyone's playing chicken
ADD:
If the range breaks downside, the "headfake" buy zone is 96.85.
If THAT breaks down, then 96.55.
Upside is test of Thursday's high (97.60's)
And I'm outta here (that's a strong breakout signal, BTW)!
CL, WTH is this crap!
There's good airspace to Thursday's high above but everyone's playing chicken
ADD:
If the range breaks downside, the "headfake" buy zone is 96.85.
If THAT breaks down, then 96.55.
Upside is test of Thursday's high (97.60's)
And I'm outta here (that's a strong breakout signal, BTW)!
Quote from NoDoji:
Callmate, HTH are you and WTH have you been?
CL, WTH is this crap!
There's good airspace to Thursday's high above but everyone's playing chicken
ADD:
If the range breaks downside, the "headfake" buy zone is 96.85.
If THAT breaks down, then 96.55.
Upside is test of Thursday's high (97.60's)
And I'm outta here (that's a strong breakout signal, BTW)!
Good call on the .85. Stealthy little RTH channel top put a premature halt to that rally, to the tick.