A cluster of stops all the way to 1.6218 on GBPUSD

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Paul
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To monolisa

Postby Paul » Sun Jul 12, 2009 2:19 pm

The lines reflect ripples/bumps/hollows on the surface of an attractor.
If you want a more picturesque way, imagine a surface of hot magma. When temperature increases so does the energy of magma and locally you can see
ripples or bumps, when the energy diminishes too fast you see hollows. When the energy returns to its average for a given time period, the surface will be smooth. A stable system (and we can readily assume that FX markets are the pillars of global stability) behaves in such a way that bumps and hollows are local excesses which will be reduced to sth smoother. This reduction or return
to smoother states call for a certain price action which is either a retracement (a bump diminished), or nullifying the local trend (a bump disappears completely) or a reversal of the trend (a bump turns into a hollow in the same spot). In order to survive the market needs to possess this quality of reducing excesses in a most natural way. This is the only way a complex system will retain its global stability.

The Minkovski space explains in a beautiful theoretical way why some trends last longer and why some trends end prematurely. Evidence can be found in stock exchanges and you do not need higher mathematics.
In FX the same thing is mission impossible because of lack of transparency. It does not mean that trends on FX follow different rules.

P.S. Your price density chart is completely different in concept as it reflects
mere price density, whereas mine reflects order density.

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monolisa
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Postby monolisa » Sun Jul 12, 2009 3:37 pm

I see. So are you able to advise how you plot these order density lines?

Thanks.

Lis
"Know your enemy and know yourself, find naught in fear for 100 battles. Know yourself but not your enemy, find level of loss and victory. Know neither your enemy or yourself, wallow in defeat every time." - Sun Tzu

Paul
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stocks weigh on eurusd

Postby Paul » Mon Jul 13, 2009 8:56 am

Selling near 1.3979 from last week repeated today, momentum still up but gradually waning. Prices penetrated low density area for stops which were hit but fresh buying was taking place near big figure 1.3900, that is near a high density area. When attempting new positions and a low density are is at stake
one should take a better price rather than any to reduce the risk. In our case the risk could be reduced by 14 pips and the move was about 60 pips.
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Paul
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GBPUSD and GBPJPY sold at the same time tonight

Postby Paul » Mon Jul 13, 2009 9:34 am

GBPUSD and GBPJPY sold at the same time tonight. The level 150.62 should be familiar to you.
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mstandifer
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Terminology

Postby mstandifer » Mon Jul 13, 2009 12:00 pm

I'm sure its listed somewhere in the thread but I was unable to find it...

What does 'sth' mean?

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monolisa
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Postby monolisa » Mon Jul 13, 2009 12:03 pm

sth = something (is it correct, Paul)?

Lis
"Know your enemy and know yourself, find naught in fear for 100 battles. Know yourself but not your enemy, find level of loss and victory. Know neither your enemy or yourself, wallow in defeat every time." - Sun Tzu

Paul
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need to distance myself

Postby Paul » Mon Jul 13, 2009 11:51 pm

I spent 8 hours talking, trading, talking, explaining, 8 hours on end with a friend from another town who had confessed hitting a wall. Do you think he is an amateur? No. He knew exactly what I was doing because I kept telling him. I said if I sank it would reassure him a bit :oops: but if I could make it better then he would be reassured more than anything else.
You know what? It did not work for him.

I traded 57 times, had 7 losers.
He closed the day disgusted. What was different then? He abhorred my not placing stops and kept using them all the time. :( He thought he knew very well what he was doing. When he told me how close those stops were, I was really stunned. I told him what is more important, a stop or your TP.

I wanted to share this story with you as a memento.
A different state of mind, a focus on a wrong thing and everything collapses.
If you are focused mostly on stop losses than certainly they may cause smaller and smaller losses, but what about the wins?

P.S. sth is something

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Patch
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Postby Patch » Tue Jul 14, 2009 12:18 am

monolisa
thanks for the translation of sth. I've been wondering what it meant.
I am on page 76 of NLA. It is a great exercise and I am learning a lot.
Jeff
ENOUGH being a Yalie for me Back to the Sea. "What i can lose, i can win" "YES YOU CAN" - dragon33 -"Pick one method and one pair and stick with them until you master it. "The choice is yours - success or failure." TRO

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monolisa
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Re: need to distance myself

Postby monolisa » Tue Jul 14, 2009 2:05 am

Paul,

So, in a nut shell, both SL and TP ARE important? Not just SL?

Are you able to divulge the method to plot the order density lines?

Thanks.

Lis

Paul wrote:I spent 8 hours talking, trading, talking, explaining, 8 hours on end with a friend from another town who had confessed hitting a wall. Do you think he is an amateur? No. He knew exactly what I was doing because I kept telling him. I said if I sank it would reassure him a bit :oops: but if I could make it better then he would be reassured more than anything else.
You know what? It did not work for him.

I traded 57 times, had 7 losers.
He closed the day disgusted. What was different then? He abhorred my not placing stops and kept using them all the time. :( He thought he knew very well what he was doing. When he told me how close those stops were, I was really stunned. I told him what is more important, a stop or your TP.

I wanted to share this story with you as a memento.
A different state of mind, a focus on a wrong thing and everything collapses.
If you are focused mostly on stop losses than certainly they may cause smaller and smaller losses, but what about the wins?

P.S. sth is something
"Know your enemy and know yourself, find naught in fear for 100 battles. Know yourself but not your enemy, find level of loss and victory. Know neither your enemy or yourself, wallow in defeat every time." - Sun Tzu

Paul
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a glimpse on EURUSD

Postby Paul » Tue Jul 14, 2009 8:53 am

Strong sells @ 1.3979 were defending their positions for quite some time and you can see the price action as clear as on a plate. Now buyers attempt to break 1.4013. Momentum is lightly up. Notice that the first touch of 1.4013 burnt someone's fingers and oops down it slumped over 40 pips. Order density chart shows that a move to 1.4013 was a hunt for stops.
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