What are the Market Makers thinking?

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es/pip
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Postby es/pip » Tue Mar 23, 2010 12:42 am

how can this not be s/r based on S/D?

and yes it is a m5 chart :D


show me a S/R based on fundamentals

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Bend over and assume the position for another 4 years of hope and change.

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es/pip
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Postby es/pip » Tue Mar 23, 2010 12:46 am

Brookmyre wrote:es/pip

When you hit reply or quote to bring up the window to allow you to type, there are some tools there to italicise, bold etc. There is a quote tool amongst them which adds the appropriate html.



thanks
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Postby es/pip » Tue Mar 23, 2010 2:20 am

i am not sure what the "common" definition of it is. My definition is-------- at any given point in time at a given price, if demand overcomes supply and forms a pivot then that is support. vice vrsa for resistance



to clarify that

that is just for S/R via pivots ------ not for ZL/MZ and the s/r they create


edit------------------

well it is in a way the same----

too hard for me to explain evidently lol
Bend over and assume the position for another 4 years of hope and change.

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Money Makers Thought

Postby N2FX » Tue Mar 23, 2010 4:13 pm

I am a money maker, and my thought is how I am going to make profits on other traders thoughts.

The big money is thinking, move this up to make people think LONG, and will drop down 50 pips and knock them out, then they will exit longs and go SHORT, will move it up again to top and knock them out again.

I look at every move the market makes like a cat and mouse game, to get traders thinking they know what they are doing.

As far as sup/res lines, they form on every time frame that I see.

ES/Pip has a keen eye on the 5 min sup/res levels, and after trading for a few years, or longer, I can see sup/res levels on a micro view.

The thing I have learned is, the smaller the view, the smaller the target and stop, if your trading a 4hr, then you can let it wiggle a little more, but when your trading CURRENT sup/res bounces, failures, breakouts, reversals, you have to be ready to get in and get out at next sup/res setup.

Here is how I trade the sup/res levels on one time frame I use.

Enjoy, and learn something...... oh, no indicators hmmmm :)
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adaseb
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Postby adaseb » Tue Mar 23, 2010 7:40 pm

Dr. Savarian (sp?) from Forex Street talks about this a lot.

I don't know whether this is true or not but here goes.

There are big players out there. And these aren't your typical playa playa's who drive pimped out Benz and Jags from 2002. These are players who buy and sell around 5000 to 10000 full lots to the market during certain times. Yes 10000 lots which is about $100,000/pip.

What they typically try to do is trap traders and use it to their advantage.

If you look at most charts before a trend change you notice a long wick and then the reversal, we call this the stop hunt.

Here these big players know ahead of time that Banks and other Institution are going to be buying so they want to buy also, however they don't like paying market price.

So what they do is start selling large amount of lots to bring price down and make all the retail traders nervous. Eventually as many stops start getting hit, it creates a domino type effect and price can drop very fast.

Then all of a sudden these big players cover their position and start buying a long position at a much cheaper price.

Also the same effect happens on pullbacks. These big players either sell or cover their position creating a pullback, everything "THINKS" the trend is about to change and they go with the trend, buying, while these players sell to everyone and then all of a sudden again the trend changes, setting off more stops.

It's an ugly world out there.

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Postby N2FX » Tue Mar 23, 2010 8:21 pm

Adaseb, that is spot on.
Once the learned trader recognizes this characteristics in the market, they can perform at a greater level of success.

I lost trade now and then, but my win/loss ratio is extremely nice, but that is because I am waiting for the moves to form as you put in your post above.

Thanks.
N2

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Postby newschool » Mon Mar 29, 2010 7:10 pm

This is a fundamental support for me... it represent more than buy/sell, it represent the general consensus about the economy...

I am 100% sure if you go back to check what happened when price touched, that you will find a news or an event.

I have nothing against small TF s&r in Forex, but I do believe its too slippery to have a real good edge over time, by trading just that. I like the ZL better ;)
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Postby newschool » Wed Jun 09, 2010 6:05 pm

Just had a thought.

By watching the price, I realized s&r seems to have a much bigger probality to hold when there are no major markets open. If you think about it, a breakout needs some force behind it, and when the market is slow it doesnt have that, and will normally range following a simple supply/demand pattern.

So scalping on s&r could be interesting during off-sessions.

Do you see the same thing es/p.

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Postby Humble » Thu Jun 10, 2010 12:52 am

If you are talking about the Asian session, have a look at the prior 8 hr range. Unless there is an obvious move under way, Asian will want to stay within that range. As usual it only works till it doesn't!
Is price closing higher or lower than something? Simple yet powerful question. ..MO

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Postby MightyOne » Thu Jun 10, 2010 2:54 am

I wanted to trade stocks when I was 8 years old...then I grew up :lol:

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