MP -- a short look back over this morning
under normal conditions (at least pre september of 2010) the price will move for 1/2 hour in the WRONG direction in response to news --- this time it actually took one hour, which is a bit off, but if you look at a 5 min chart, you will see exactly when the move started and exactly when it bottomed as the 5 min is your good friendly chart for scalping (not that I use it for individual trades, but it gives a good idea of price action and direction from minute to minute
anyway, REMEMBER this for news trading and apply as you wish
NOW, for all of those out there with systems, methods, concepts, creations, crossovers, indicators, price action, candles and all the rest, THE ONE OVERWHELMINGLY IMPORTANT THING IN THE GAME OF FOREX IS SUPPORT AND RESISTANCE. (that old italian coot, Fibonacci, had some great ideas also --- wonder what he traded way back then -- reggiano parmesan and olive oil ?)
the banks, liquidity providers and brokers ALL have the figures in front of them, usually based on the 30 min or H1 chart and they follow very defined time periods when the price moves in one direction and then reverses (extreme momentum can alter this)
I watch a demo i have and the brokers move the price down BEFORE the price gets there, so that you cannot take the trade unless youre already in it, and the millisecond price hits that point, they move the ask up to the TP point for the reverse LONG trade, so you cannot enter that trade either, as there is no spread to work within --- its more than obvious THAT THEY ALREADY KNOW EACH AND EVERY PLACE TO TAKE PROFITS --- the workaround is to KNOW where the support and resistance areas are, and when the price decreases, take your LONG position, beating them completely by being AHEAD of them, and the same for the support area. In practice, its amazingly simple, although not the easiest thing to learn except for time spent learning how to do it. One very simple clue, if youre working with a level 2 chart, is when the bid and ask are THE SAME, its now time to reverse and fast !
The confusion some of the newbs feel when watching charts moving all over the place is to think this is all RANDOM ---- lemme tell ya right here, there is NO RANDOMNESS in what is happening in front of you, only that you dont quite understand because you dont yet have the knowledge or experience to understand.
FOREX can be learned by almost anyone, in my opinion --- of course, like dental college, some will be at the bottom of their class and some at the top (and the top "usually" makes more profits, be in teeth pulled or currency accumulated), and theres nothing can be done about that except to understand that forex (commodities and/or the derivitive and index markets) are the greatest interactive monopoly games ever put forth for one who wants to trade from the forcastle of their own yacht, cruising the bahamas with a few lovelies or boy toys in tow. (there are, after all, some excellent women traders out there, Toni Turner comes to mind immediately, and while she was my mentor and I speak with her on occasion, I CANNOT address if she has a boy toy or not, but shes a darn good looking woman and a heck of a trader and teacher)
maybe somewhere along the line I can help
enjoy and trade well
mp
"Never argue with an idiot.They will bring you down to their level and beat you with experience!