Thanks for your reply. I'm just asking this, because as far as I know, the market professionals give much attetnion to the volume linked with price action/price spread making their trading decisions solely based on this complex interrelationship.
As Tom Williams writes in his book "Master the Market", these professionals are trading their own accounts and can see both sides of the market (current buy and sell orders). If syndicates are in the process of selling or buying large blocks of instruments, profs know these large transactions will have an immediate effect on the market, so they will also trade the futures and option contracts in order to offset or lower risk. This is why the future often seems to move before the cash. And such may give early signals to take action on the cash market.
Any comments from you on this? Thanks in advance.
Hi Stag. Speaking shortly - this is the question of analysis method. For instance, I use DiNapoli approach and it assumes using of volumes only in estimation so called "Squat" - small range bar with huge volume for confirmation of support and resistance.
Still, on the bond market for investment purposes I have to track a lot of volumes - auctions and its results, speculative positions and investor's positions and some others.
Trading volume exceptionally important on options - for trading of volatility.
So, it depends on strategy and analysis technic. In DiNapoli method volumes are not so important.
Hi Sive,
I no longer trade silver or gold, but for educational purposes, xagusd is showing a RR Tracks on the monthly time frame. In this type of situation, Mr. Dinapoli says the downtrend will continue, if I am not mistaken, with strength. My questions are three -
1) what is the point of recognition for a RR Tracks? I could not easily tell in reading his book, but it looks like it is when the end of the second bar passes the start of the first. Or is it when the second bar closes past the start of the first bar?
2) Is the pair be likely to retrace to .382 support and produce a B&B sell down to .618 of this move?
3) Is there a rule as to how much lower a pair goes on a RR Tracks Sell pattern? (or how much higher on a RR Tracks buy).
Many thanks.
Hi Icarus
1. Point of recognition is a close of second bar. That's why DiNapoli tells that it's very dangerous to anticipate RRT. If market will close, say, in the middle of the second bar - this is not RRT. So, you absolutely need confirmation
2 and 3
The target of RRT is a length of it's bars. Particularly most probable target. Sometimes RRT leads to long term reversal.
But to estimate will market reach support or not - drop to daily search for AB-CD. Also, we do not want to see next bar close above 50% of RRT. IF this is true rejection of price - retracement should be shallow or abcent at all...
We still have a possibility on the B&B don't we? For a 1.085 target?
Well, It has worked out. Market has hit the target - not quite, but this move in terms of B&B has accomplished, I suppose. May be it still could touch the target, but risk/reward currently looks unattractive... May be better is to skip it.
hi sive ..
I am a newcomer to the world of forex, Can you help me give advice to use what indicators?
I have a buy position at 1.4880 and now the price is at 1.4400
how do you think? Because I saw at 1.5150 for sell position.
how to use the good fibonacci retracement?
-Thank You-
Hi Jimmy,
well, you've asked a very very large question. If you're new on Forex - I suggest you to do couple of things:
1. Start with our Forex Military School. Although there is just initial information about FX, but step by step we will shift to technical analysis there, and it will be very usefull;
2. There is an Archive of our researches - as video as text. Start to study them. You will find a lot of useful things.