Just looks like a market makers auction. The longer they can keep it like that the more money they make.

What is the significance of this choppy tick chart?

The problem with retail traders is that they do not have the same tools as the institutions. They have complex models that are used to value instruments whereas Retail traders have to rely on price lagging indicators and technical analysis which ...

Back After 7 years for a fresh start in Forex trading

While PA is important it will only ever tell part of the story. I notice you dont have volume on your charts so not sure how you would interpret PA without it. To truly understand PA you should also be looking at number bars. You trade effectively ...

what happens next? Price action training

Risk On - Money moves into risky (high yielding) assets out of low yielding assets. Risk off - visa versa Yen is very low yield and is viewed as a safe haven currency along with the Swissy, Bonds and Gold. So when there is a risk event eg like today ...

what happens next? Price action training

See the chart below for the correlation between the two. There is not much, however under some market conditions like Risk On / Off the do become positively correlated image

what happens next? Price action training

Bit more on pullbacks. Say in an uptrend the market comes to a potential top and sellers come into the market. None of those sellers are going to be in profit. The buyers will have all the profits so the sellers are weak handed. It will be easy to ...

The Trader's Academy - by Traders for Traders

I agree with this. Picking tops and bottoms is very difficult to do if you cannot value an instrument. Price action in these areas is opaque for the reason that the institutions dont want retail traders competing with them for liquidity and will run ...

The Trader's Academy - by Traders for Traders

My method of trading is statistical arbitrage where one identifies short term mispricing in the market. So I am always trading an instrument that is either over or undervalued and hence offers value. To enter trades I will still however use price ...

The Trader's Academy - by Traders for Traders

Nice thread Cat.

The Trader's Academy - by Traders for Traders

Look at the time of that ND. Its fairly late in the evening, London and European desks have closed and traders have gone home. There are going to be very few traders about to push the price down further. Also take note of how far the price has come ...

vsa with Malcolm

Please explain how I am incorrect. Also you are talking about the EURUSD in your first post but posted are Eurodollar chart. Which one are we talking about here?

Price action trading - Trade like the pros!

Hi Mercennary The commercials in the COT report are actually short the EUR not long. For Commercials they buy/sell contracts for hedging positions so you have to invert it for their view of the market.

Price action trading - Trade like the pros!

I didnt say you cant buy high. I said you shouldnt buy something that is overvalued. There is a big difference between the two. There are of course times when it is appropriate to buy at a swing high or sell at a swing low and that is when value is ...

Your top 3 indicators

Strategy is not important. The wrong question is being asked. The question you should be asking is how do you value an instrument. There are many thousands of strategies but they are all worthless if you are buying something that is overvalued.

Your top 3 indicators

Hi Hanover I know you have been around here for a long time and have been a big help to many traders. I am like you, I have been here since 08 but only in the past 6 months have I made huge progress in terms of my understanding of the markets, ...

Your top 3 indicators

Note that the market makers and institutions are different entities and have different aims. The most generally the important fundamental aspect for currencies is inflationary expectations. This will determine the long term trends but will not help ...

Your top 3 indicators

I wouldnt say that markets are perfectly organised but they are definitely not random. No one is placing $500m trade in a random market environment. Institutions will not all have the same view on the markets and will often manipulate markets to ...

Your top 3 indicators

I worked in investment banking for 15 years so have a good idea. I never said that someone should trade off volume and MP signals. I said it offers a clue as to what the institutional traders are doing in the markets and you need to factor in the ...

Your top 3 indicators

All indicators except for volume, delta and market profile (all not really indicators anyway) will be lagging. If you trade using indicators you will forever be trading with the rest of the retail traders at retail prices instead of with the ...

Your top 3 indicators