Determining 6e institutional price levels

Discussion in 'Financial Futures' started by NeedGoodAction, Jul 28, 2010.

  1. I've seen trading rooms that publish daily institutional levels for outrageous fees. They do not say where they get these levels. I also had some exposure to a man that figured this out, but he never shared the secrets.

    I've failed with a purchased indicator system (very lagging), tried to define my own price action/volume T&S system, and still have not found something where I can make money without going a little insane. My system was based on a 3-range 6e and was very manual. Results varied a little too widely, and mental exercise was extremely high.

    Any clues appreciated here. PM if you prefer.

    Thanks
     
  2. I worked DB and every morning London time the FX research team sends out a market analysis with price levels that the PROP team will be entering long or short various crosses.. with support and resistance levels.. something like

    "we will engage in a dip buying strategy below 1.XXXX with a 30 pip stop limit"..

    you would be surprised how often the trades end up being stopped out, or the market absolutely goes against them.. im not saying they are losing traders, the medium to long term strategies are HUGE winners, but I amm sure daily swings are not pre determined by the sales department.

    FX sales at major institutions are geared towards structured products hedging.
     
  3. from your original post.. i think the support and resistance levels supplied by FX research at the Bulge Bracket firms like GS/MS/DB are the levels you are referring too, but as I compare them to a chart there is not special about them.. basic TA
     
  4. * Use a free international economic calendar

    * Learn the open/close times of key markets

    * Learn all you can about supply/demand analysis

    * Learn all you can about volatility analysis

    It won't be perfect but you'll be watching similar key price areas that the big boys are watching.

    Your welcome.

    Mark
     
  5. bigb

    bigb

    better to use on the 6e is the daily expiring option numbers. i.e. 500 million expiring thursday at 1.3050. The S/R numbers you are referring to that I have seen are basic levels you see on a chart. Nothing special and as OTC said, whenever I see these levels published they often get runover. For example, last week I saw a bank (I think it was Barclay's) say that 1.2880 should provide the top to this runup. That day price shot well above up to 1.30 area.
     
  6. Good stuff guys. Much appreciated. I'll see what I can find based on your recommendations.