How can you trust the analysis after that? - page 10
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.... Volume is also an oscillator, but it works in a different way, similar to ATR, StdDev, AD)))
How can you compare trading volume with oscillators. The indicators you mentioned measure the volatility of an instrument, what does trading volume have to do with it?
How can you compare trading volume with oscillators. The indicators you mentioned measure the volatility of an instrument, what does trading volume have to do with it.
What is the practical sense of how many times price has bounced off your imaginary level.
It makes no practical sense because the market doesn't care what traders think about how the market performs at the price level. The market just does it over and over again at the level that matters to it. It's as illogical as asking why the sun rises in the morning ))
There are so many strategies based on all sorts of patterns, and there traders believe that the historical pattern will be repeated.
But when I say the market has its historical price levels, traders don't believe it.
Is there a difference?
The difference is like getting hit in the forehead with a ping-pong ball or a brick, i.e. fundamental. Volumes and oscillators on price show different characteristics of movement, so of course they are not "about the same".
Is there a difference?
In reality you see the mass of an object, even if you don't see it, but you know that a tank weighs a lot. In the market you only see an "image" through volumes, it could be a real tank from which you can take something. Or it can be an empty cardboard decoration in the form of a tank, of course with the advantageous concept of mass that has no resemblance to the movement.
So there is and there is not a difference.
Similarly on your "there is a difference", you can ask - "are you sure that you exactly can identify what passed, with what speed, and mass?
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How can you trust the analysis after that?
Vitalii Ananev, 2022.01.12 06:15
What is the practical sense of how many times the price bounced from your imaginary level? For intraday trading and to improve your entry point in the medium term, only the nearest highs and lows have practical value. These are the places where the price changed its direction, and the price does not just change its direction, it was turned around by market traders' trades. The price was rising then began to fall, that is, at that point in time they were selling more than they were buying. In other words, there are a lot of open sell positions or previous longs were closed there and, possibly, there is a large sell limit that could not be closed because there were not enough buyers to close it completely and remove the obstacle for the further upward move. The reason why the buyers sold more than they bought is not shown on the chart. They may be longers closing long positions and they may be shorts that open new shorts positions. All forex offices do not broadcast to their users the real market, there is no trading feed, the volume is just the number of past trades. What happens when the price approaches the nearest extremum can only be guessed from the colour of the candle and its shadows, and how to interpret it is limited only by the trader's imagination.
There are scripts that analyze the tape of deals and open interest for futures. When approaching such a "fresh" extremum, it is very interesting to observe the tape and Open Interest. For example, there is a local maximum and the price breaks it. The number of buy deals sharply increases and at the same time the Open Interest also decreases. It may be concluded that the shorts have triggered the stops that were behind that high. The sales are closing by buying, and the number of open positions (which shows the Open Interest) is decreasing. If at this level there were also buy stops, calculated on its violation, the Open Interest may not change or may change slightly, and even may grow sharply. Thus, when short stops trigger, buy stops trigger new buy positions as well.
As you can see from the picture, there is no point in historical levels.
That's sarcasm for local mentors )) the main thing is to believe in your own postulates rather than relying on facts, right?
What is the practical significance of how many times price has bounced from your imaginary level. For intraday trading and to improve the entry point in the medium term, only the nearest highs and lows are of practical importance. These are the places where the price changed its direction, and the price does not just change direction it was reversed by market traders' trades. The price was rising then began to fall, that is, at that point in time they were selling more than they were buying. In other words, there are a lot of open sell positions or previous longs were closed there and, possibly, there is a large sell limit that could not be closed because there were not enough buyers to close it completely and remove the obstacle for the further upward move. The reason why the buyers sold more than they bought is not shown on the chart. They may be longers closing long positions and they may be shorts that open new shorts positions. All forex offices do not broadcast to their users the real market, there is no trading feed, the volume is just the number of past trades. What happens when the price approaches the nearest extremum can only be guessed from the colour of the candle and its shadows, and how to interpret it is limited only by the trader's imagination.
There are scripts that analyze the tape of deals and open interest for futures. When approaching such a "fresh" extremum, it is very interesting to observe the tape and Open Interest. For example, there is a local maximum and the price breaks it. The number of buy deals sharply increases and at the same time the Open Interest also decreases. It may be concluded that the shorts have triggered the stops that were behind that high. The sales are closing by buying, and the number of open positions (which shows the Open Interest) is decreasing. If at this level there were also buy stops, calculated on its violation, the Open Interest may not change or may change slightly, and even may grow sharply. Thus, when short stops trigger, buy stops trigger new buy positions.
I agree, but not with all of the conclusions.
really good post
not many people think the same, even though it's obvious.
it goes from complex to simpleIt makes no practical sense because the market doesn't care what traders think about how the market operates at the price level. The market just does it over and over again at a level that is important to it. It's as illogical as asking why the sun rises in the morning ))
There are so many strategies based on all sorts of patterns, and there traders believe that the historical pattern will be repeated.
But when I say the market has its historical price levels, traders don't believe it.
"But when I say the market has its historical price levels, traders don't believe it." - If it is a fait accompli (on history), one can believe but not trust that the level will continue to work, the level itself ( range ) can have event characteristics: - Lehman Brothers , "distancing" from EU CHF and GBP ( Brexit ) , i.e. individual cyclicality .
As you can see from the picture, there is no point in historical levels.
This is sarcasm for local mentors )) the main thing is to believe in your own postulates rather than rely on facts, right?
As my grandmother used to say: there are two fools in the bazaar - one sells and the other buys...and levels are pure psychology...
No, well, they work, some people make profit... Fibo helps me a lot, but I guess you have to play the opposite, where you see a profit you get a loss... and only then profit, when you realize the underlying insidiousness of Forex - its desire to leave you without trousers in any way...))
But they say monkeys are easy to deal with... And only those who are overcome by greed perish completely and irrevocably ...))
Happy New Year, happy new "mini-peezer", as my granddaughter says, profits...))
yes, 1 - 2 % a day is all you need...))