So yesterday I created the first part to the 'post' Today I'll continue it.submitted by iTradeSocial to u/iTradeSocial [link] [comments]
All markets, equities, cars, widgets, groceries, bonds and even forex are driven by volume. Without volume there is no movement as it's the market maker to entice the trader to aggressively buy or sell based upon their sentiments of direction.
So let's first put into perspective market sentiment and what it is for this posts purpose.
Sentiment is the psychological pressure of trader expectations in movement. It's visible through intermarket analysis and even some indexes when the indexes are properly cross referenced. But sentiment is visible even when candles stop their climb or when buying pressure supports the prices on an attempt to move lower. What comes after sentiment builds it's pressure is the path of least resistance and that's really what the markets are doing. Following the path of least resistance with volume as the rivers boundaries.
Volume in foreign exchange is real.
Retail traders think that because the market is decentralized that volume isn't available. Well, the broker you connect to, and the prime broker or bank that they connect to, they source their pricing with risk management modules by analyzing aggregated volume. Aggregation is a grouping of FX liquidity streams (that all include volume levels) into one hub of liquidity housed inside a limit order book. Volume is not made available to you though. It's the playground of the banks and if you're going to have access to a tool that allows the masses to dilute their returns do you think they would let you have it freely? Nope! They would though lobby for laws (Dodd-Frank, FIFO etc etc come to mind here) they all make it more difficult for you to trade!!!! Opacity!!! But volume is very real, it only needs proper aggregation!
So how do we find valuable opportunities when studying the charts? First off, if you study the charts alone you're doing yourself a great disservice! EURUSD in any time frame is just a representation of a relationship between two currencies. You need to study the value of the underlying currencies!
What that provides you is precision entries. Let's call the entry on Candle 12 (an arbitrary number). On candle 12 you see USDCHF spike higher, that would indicate that EURUSD is going to drop 96% of the time! Oh a little insight! So you take a position short EURUSD on candle 12 in expectation that the relationship between the two currencies is going to go lower because of the strength in the Dollar.
But remember, exchange rate fluctuation is the path of least resistance. So at the point where you have found your entry short in EURUSD, there is the opposite consideration. What if I am wrong? What it if goes the other way? At what price would it show me the opposite direction and how long do I have to wait to confirm a reversal? Candle 12 is magical. It tells you what you need. You see, in ALL instances, extremes high or lows of charts are seen by changes in what's called bid/ask bounce. When bid ask bounce is breached it's giving you sentiment, volume and price all shifting directions. If candle 12 is the candle short, then the high immediately prior to candle 12 is your reversal point!
I guarantee you this is the intersection of buyers and sellers, and when one defeats the other the market changes direction. This is true for all of the entries here, if price reversed before it reached a profitable exit then the reverse would in fact be at the opposite extreme prior to the entry candle.
So we go back and visit the adage buy low/sell high but what happens in between? Proper analysis is an active participation. And just as your analysis says you should buy or sell, your analysis should also tell you how the market is reacting in the middle. If there's no change or breach in bid/ask bounce the trend is still moving.
In the attached chart. When an entry signal is confirmed, the immediate high or low prior to that entry becomes the exact reversal point. (I have circled them in yellow) In most of the opportunities shown that stop loss is a mere 2.2 pips away from the entry price and there are no reversals that were required and all signals were profitably identified. No I did not trade them, this is live analysis that runs continually. Of all the signals there is ONE blue X in the center region of the chart that almost gave a sell signal but price pressures remained in tact and thus bullish. The analysis identifies over 100 pips in movement within a range of 35 pips overall. And none of it with lagging analysis.
With proper analysis, you can maximize your returns by comprehensively understanding all market conditions. You'll minimize your losing trades to negligible frequencies, your gains will be maximized and you'll see precisely how the market moves, turns, breathes and follows the path of least resistance.
Now my purpose here is to develop market transparency for the little guy. Sure my posts attract trolls because the trolls have been burned by their own trading ignorance. So they attack those that strive for and deliver something better, in fact most of them don't know how to trade to save their life and that's their anger. I could show you a few of them who have had accounts with companies I advise or am principal of - but there are privacy rights to respect. Do I do this free? On here of course. Is it a business? I've spent over a million dollars in just research, but when I experienced how expensive it was to obtain true transparency I knew there were benefits to providing this information to retail traders.
Intermarket analysis is based on the forex market not being isolated and moving on its own but is part of the dynamics of the global economy and the various types of markets that influence it. Therefore, by looking at price movements in various types of markets, we can get clues about the direction of the movement of a currency pair. The Intermarket Analysis is an appendix of technical analysis, which received significant success based on publications of John Murphy at the beginning of the 1990s. The focus of this form of analysis is the examination of relations between the various classes of assets. Market operators can use the combination of signals in bonds-commodities-equity markets to recognize which part of the ... Intermarket analysis studies the relationships between asset classes, typically currencies, bonds, commodities, and stocks. It can help traders generate broader trading ideas, reveal potential market turning points, or confirm other analysis methods. The price action of currencies is often driven by their relationship with commodities, bonds, and stock indices. For example, here are some ... Intermarket Analysis: The analysis of more than one related asset class or financial market to determine the strength or weakness of the financial markets or asset classes being considered ... Yet intermarket analysis as it’s called is a missed opportunity in my view. Many traders ignore the subject almost entirely, preferring to focus on one market at a time. So those open to learning about this method can certainly gain an advantage. What is Intermarket Analysis? Financial markets don’t exist in isolation. Many have fairly predictable inter relationships with each other ... Intermarket Analysis is a part of the technical analysis, which investigates the relationships between different financial markets. The Intermarket analysis focuses on four major asset classes: bonds, currencies, equities, and commodities. CurrenciesFX.com - Menu. Contact Us; Menu. Home Foreign Exchange (Forex) Trading; Forex Currencies Getting Started (+) Major Exchange Rate Theories Factors ... Hello. As the title implies, I would like to discuss news as well as various other markets that may help us all make better and more informed forex trades. There are few good books on the subject of intermarket analysis. One I have in hardcopy is "Currency Trading and Intermarket analysis" by Ashraf Laidi, it is excellent. Everything you need to keep informed about intermarket analysis. Check FXStreet's high quality resources. Intermarket Analysis of Forex Markets MARCH 2008 41. CURRENCY TRADING Intermarket analysis: The next logical step So, a quantitative approach to implement intermarket analysis, which has been the basis of my research since the mid-1980s, is neither a radical departure from traditional single market technical analysis nor an attempt to undermine it or replace it. Intermarket analysis, in my ... Intermarket analysis was popularized by renowned financial market technical analysis expert John J. Murphy in his 2004 book entitled, “Intermarket Analysis: Profiting from Global Market Relationships”. Subsequent advancements in neural network technology as applied to trading systems have made this an increasingly relevant subject for today’s forex trader.
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Trading with Intermarket Analysis - S&P 500, US Dollar, Oil, Gold - Duration: 8 ... Intermarket Correlations For Forex Traders The Easy Way (With Tradingview) - Duration: 10:38. Tradeciety.com ... Forex Intermarket Analysis: Dollar Index + Gold = AUD/USD - Duration: 11:10. Tradeciety.com 2,563 views. 11:10. Forex Trading Strategy Session: Intermarket Analysis and Currency Correlation - ... Do you want to learn our trading strategy? Check out our premium courses: https://tradeciety.com/pricing For more free trading tips, go here: https://tra... FOREX: WHY INTERMARKET ANALYSIS IS KING - Duration: 1 ... IFTA London - John J Murphy - Trading with Intermarket Analysis - Duration: 53:17. Society of Technical Analysts (STA) 5,569 views. 53:17 ...