Discussion in 'Forex' started by secxces, Jan 11, 2007.
Hi viper you make very valid points about the FX market and the ability to trade it, congrats.
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Viper, Looking forward to hearing from you. Out of curiosity, Could you also comment on your views on Auto Trading. Kinda of a hot topic, just figured I would ask.
Im still interested in your thoughts. Didnt want you to forget and I miss out on the info.
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Anymore comments on this? Im surprised! With all the bucket shops suckering in so many people, im surprised heres not like 100 posts a day! .lol
Sec, here are my observations and clarifications regarding levels, but first a definition or two. When I say it remembers, I mean that the those who are trading the pair or whatever it is you are trading will remember. MMTH= Murrey math, Fib= fibonacci.
First, it is my opinion that levels must be used in a successful trading system. The reason I say this is that levels augment any trend or oscillations system you might use, helping you to find the sweet spot entry and exit. It can also help you avoid massive drawndowns on the way to making a profit.
I do not like systems that have you take a 60 pip drawdown just to make 15 pips, but there are some who trade successfully with a system like this, but I will tell you, if you are trading 500k units and you have this drawdown, I guarantee you will not forget the ride, it is nasty.
Now everyone should have yesterdays high, low, mean, and last weeks H,L,M. Also a pivot level indicator with adjustable parameters is good. You have to be able to play around with the parameters to get the indicator to work on the different pairs.
Fib is best used for retraces, but be warned, sometimes it works to the pip and sometimes it is worthless. If I had to put a percentage I would guess 75% of the time it works. You have all sorts of variations and mutations, so take some time to try them out.
MMTH is an invention of T Henning Murrey Phd, he is one crazy and crusty crab, but when his system is working in forex it also works to the pip. Another 75% for this system. Beware there are imitators, and these imitations DO NOT WORK EVER. Another side note, the system is based on 1/8s, and a bunch of stuff about how 1/8 is a universal scale that occurs in nature including music. Well the only reason that western music occurs in 1/8 scales or 12 tones per octave is, that is what the Catholic Church decreed, that there would be twelve tones and only twelve tones, for the 12 apostles. Now what happens to a system like this when a lot of people who are used to listening to atonal music, china, middle east, india etc. start trading and don't hear the western harmony, I donno.
Thirds are another option, some traders divide the chart into 33%,66% etc. Now what happens when you hit 666% I donno.
Now everything we trade will remember the following days levels, and the following weeks levels, and even the following month and year. So it will usually stall, pause, consolidate, or reverse at these points. Now they are not absolute or perfect but they can help you trade more efficiently. So put them up on your chart and observe, you will be surprised.
The Ever Level VIPER
"Professional Forex Traders" and "bucket shops suckering in so many people" really don't go together -- excepting any instance of pros smart enough to start their own bucketshop to cater to the suckers. What an edge that'd be.
Sec, here are my observations on corrolation, you may want to look at the volume and price action on the nyse and nasdaq this can help to see where the money has gone. Also you need to look at the volume on the pair you are trading, there is no real volume but the better platforms, like NEOTICKER, and Topgun, have "synthetic" volume, try it you'll like it. Volume can also help show these mood swings.
Time frames: Put up a 5min chart and a 50 tick chart and see which gives more clarity.
Any More Questions just put them up here
The Ever Helpful VIPER
Tradeviper: may i ask what charting-app and datafeed you use?
its 2008...am still waiting for viper
Forex vols on the majors peaks at <12% in stat and implied vol. Save for fixed-income, vols are lowest in FX.
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