Spec2007, Your comments look to very experienced, what do you think about trend and counter trend systems being applied to your 3 session break down? So you have any opinions of ATS currency systems? Thanks in advance.
A counter trend system has implications to reversion to mean on the timeframe being looked at. The only way I can trade currencies profitably is trying to get intune with the market. By looking at price action and focusing on the ticks second to second, minute to minute, you can actually sense the mindsets behind them operating. But if the tick movements are slow in nature and its a quiet market, its like flying blind. I can't sense what the motive behind the movement is. If the current sentiment or price action is against the predominate trend, I tend to be cautious, and the probabilities are lower, but the probabilities shoot up dramatically when the price action matches the long term trend. So a counter trend system, I shy away from since, having probabilities in your favor should be the goal of any trader. But if I do trade against the trend, I'm very quick to take profits. I watch the markets looking for the 'pulse' or price action behind them. You can lose a lot of money trying to force the trade. If you dont see you dont see it and that means stay out. Watching price action in a active market is one of the most exhilirating things I find in this world. I can sense the multitude of mindsets jocking for control.
I can feel it myself and I haven't even traded a dollar of my own money.. very soon.. I'm developing myself as I type this.. Thanks again for your help.. Cheers
There is one more important thing that came to mind. When actively scalping on a 1 minute or 5 minute chart. There is 'heart beat' to the market, its not the samething as the pulse of the market. The heartbeat is a oscillation wave in a active market. People all over the globe trading a market see the same information in general. So they sync up in different groups at different price points. Those people throw in the towel as the price moves away from them. And you will see acceleration in the velocity of price movement. As they throw in the towel which is capitulation. But this happens seconds minute to minute. And the emotional pattern is registered in the price. So this anticipatory sense of the market, if I feel prices should move up and they dont then I get short, and if I get short and prices dont move down I reverse. I try to sync up with the emotional waves intraday on the price. And its only possible in a very active market.
As far as your own personal system, how much of a percentage of your success would you attribute to fully understanding this and using it?
almost 90%, once you derive this information, the best thing to do is leave the trade alone and let it run with the trend till the end of the session. in the early days, I would actively try to ride the waves throughout the whole session. But its taxing mentally and you get fatigued. At the earliest determination of sentiment in a active market, you leave the trade alone.
What a shock. A 24yo who claims a "vast" and "extensive" knowledge in the fields of financial / tax planning and credit repair / building... the fields which, of course, fit so well together... can't possibly be full of it, can he?