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DAY TRADING! EURUSD The Small Picture! BUY EURUSD My last post, which you can see at the bottom of this post, consist of the same strategy but on a higher time frame and now we got the baby version here. So the market came out of the contraction phase this morning and now it's come back down to retest the lows. So since we are bullish on a medium time frame I think the expansion phase will continue in the upward direction but don't forget the importance of the middle line! Me and my group have already placed our trades and we will manage it accordingly! Any opposing views, comments, arguments or feedbacks are welcomed.
Long
by Joseph_Yabwa
88
Trading key-levels and how to HEDGE properly (+486 pips)Is it true that the Forex Market is manipulated and controlled by a handful of banks and market makers? If so, how can we identify when they manipulate the forex markets and is it something that requires access to sophisticated tools and secret contacts? Well, let’s begin by getting a few facts straight. Firstly it is true that the forex markets are manipulated and while you don’t need any sophisticated tools or secret contacts to understand how this happens, identifying when it happens is not easy for the majority of retails traders. What most traders fail to appreciate is what the financial markets truly are and how to trade forex properly. The Forex markets is a place where buyers and sellers come together facilitated by brokers and market makers who look to profit by making a commission for each transaction. Just like any other market, buyers and sellers can only come together if there is a middleman facilitating the transaction. This middleman in the case of Forex is the market maker, and their job is simply to match buy and sell orders for the best price possible and earn the most commission that they can on each transaction. How forex works – Buyer & Seller Counterparties Every trade that is executed in the forex markets has to have a buyer and seller and when this takes place then we have a trade. This normally happens in a fraction of a second electronically but in essence, each time you enter a buy trade you are being matched with someone who is happy to enter a sell position and take the opposite side of your trade. If this doesn’t happen then there wouldn’t be a trade. Why is this so important? Because it highlights the problems that large banks have which small traders don’t. Any retail trader is able to place whatever position size they wish into the market without ever fearing slippage or bad fill. Granted slippage may take place during high impact news items such as central bank announcements but on the whole, most of the executed trades are done instantaneously. Now if you’re a retail trader trading 1 standard Lot then you won’t have any problems with being filled at the price you want. Imagine you’re trading 100 Lots or 500 Lots or 1000 lots, these are larger positions to put into the market at any one time and it’s much more difficult to find someone to take the other side of the trade at the exact price and the exact time that you want and therefore might not be filled at a great price. Well, what could you do in such a situation? You have one of three options: Option 1: You could either bite the bullet and get executed at whatever price you are able to get, the only problem here is that you won’t be getting the best price possible for your trade which eats into your profits. Option 2: You could wait for the price to get to the price level you want so that you get the best execution possible and buy or sell at a much more favorable price – this is great but what if the price doesn’t get to the level you want for you to execute your trade? You will either be forced to walk away without making a trade or be forced to take whatever price you can get if doing the trade is absolutely essential Option 3: You force the price to get to the level at which you want to transact by cleverly manipulating other smaller traders to push the market in the direction you want it to go. Once you get the price to the level you want then you can carry out your transaction. How can you do this? By taking massive positions and exercising your muscle. This is similar to when large companies and conglomerates bully smaller businesses out of the market through aggressive competition. Best Options… Which option do market makers and those with large orders take? Option 3. This is how manipulation works in simplicity. The big players who have the money to move the market in the direction they want, do so on a regular basis. What’s more, they have no option but to do this because unless they can manipulate the market then they won’t be able to execute their large orders. Think about it – what causes the price to move up? An imbalance of buy and sell orders such that there are more buy orders than sell orders which means there is more demand for that particular currency pair than there is supply. Conversely, what causes the price to fall – a larger build up of sell orders than buy orders such that supply outstrips demand thereby resulting in price falling. Now if a market maker comes into the market with a massive order to buy a currency, what will happen to the price? It will start to rise. This means that the market maker is bidding the price higher and so forcing himself to keep buying at higher and higher prices until their order is filled. This hardly sounds attractive or even smart for that matter as the market maker is in the business of maximizing their profits. So what is the alternative? The only alternative is to buy or sell in a hidden way without alerting all the other traders as to what is really happening. How does this take place? By buying into selling pressure or selling into buying pressure. In other words, what a market maker will do is do the opposite of what they intend to do in order to push the price to their desired level. What is a market maker? It is a financial intermediary set up with the sole purpose of matching buyers and sellers together to make a commission in the process. So let’s say a large European conglomerate wants to buy out a US company for $10 Billion. It can’t just go to a money exchange bureau or the bank to change that amount of money. Most likely it will go to a currency broker or a large bank who will complete the transaction by going into the money markets via their brokerage arm. Once the market maker receives the order for the transaction, their job is to convert the conglomerate’s money from Euro’s into USD. They will, therefore, be trading the EUR/USD pair and selling Euro’s and buying USD. Since this transaction of selling Euros and buying USD happens instantaneously, what the market maker needs to do is get the highest exchange rate they can for Euros to USD. The way they do this is very important as it affects the amount of commission they stand to make. In this example, it’s in the market maker’s interest to achieve the highest interest rate they can so they do this by driving the exchange rate higher first and then starting to sell the euros against this higher price. They continue to sell just as everyone else is fooled into thinking that price is going to continue higher until eventually they sell all the euros and convert into USD and complete the transaction. What happens now is that since the selling pressure has become stronger than the buying pressure, price starts to fall rapidly and everyone is left scrambling to get out of the trade once they find out that they are wrong. The reason people are left scrambling is that as a result of giving a false signal of the market starting to move up, the market maker manages to entice other traders to start buying heavily. Once the other traders find out that they were wrong in their assessment of market direction, then the main focus becomes to get out of their positions quickly. This is what we call the trap and it happens on a weekly basis in the Forex market. _________________________________________________________________________________________________________________________________________________________________________ No part of this book may be reproduced or used in any manner without written permission of the copyright owners except for the use of quotations in a book review. Any opinions, news, research, analysis, prices, trade discussions, or other information contained on this website are educational in nature and merely provided as a presentation of trading strategies. Commentaries made on this website reflect our own opinions and trading techniques and do not constitute investment advice. All information and material is for educational and entertainment purposes only and is not intended to provide financial advice. *This is not financial advice. I am not a licensed financial advisor. Seek a licensed financial advisor before making any investment decisions. I am not responsible for losses or gains that may or may not occur in the marketplace. Forex carries a high level of risk not suitable for all investors.*
Long
by TayFx
4
EUR/USDThis was a beautiful; trade today! My entry was filled this morning and my exit was after the FOMC meeting My past trades have been losers but i always took the next trade!!! This is actually a great lesson for new traders If you have backtested you strategy and you know its profitable then you know how many trades you can take losses on so there fore you should not get emotional when you have losses It doesn't matter how losses you have in a row you ALWAYS take the next trade WHEN you receive a SIGNAL!!!!! DO NOT FEAR LOSSES !!!!!! Thank you guys and girls for supporting me!!! Please share my content
Long
by FXjoey90
EUR/USDAlright people when you exit a trade weather its profit or loss always be ready for the next trade . Now the next trade has to be a part of your rules . At 4 pm CST i got a signal to go long on EUR/USD The green vertical line indicated my signal I drew a fib from low point and high point before the green line If it goes higher before pulling back i will re adjust my fib to the newest high point Risk: 20 pips Reward: 40 pips Thank you again for supporting me and following me
Long
by FXjoey90
6
EUR/USD ShortAlright guys Its 4 am in the morning where im at!! I just received a signal to go short on EUR/USD AT 4 am CST is when i got the confirmation to look for a short position On the 4 hour chart the 4 am candle is the conformation candle that the 10 ema crossed below the 20 ema Now on the 1 hour chart i am looking for a re tracement back up to the 38.2 fib level My entry will be 2 pips below the 38.2 fib level Guys and girls!!! Let me know you you want to receive the same signals as me
Short
by FXjoey90
EUR/USD missed tradeWell guys and girls he is an example of a missed trade Approx at 11/29/19 at 7am the pair made a new low, however i was not at mt computer to adjust my fib levels When this occurred i was actually making money in my other business so i guess its not too bad Look you will not be able to catch every single trade unless you just do not sleep ( which i do not recommend) All i can do now is just sit back and wait for the next trade. While i am waiting i will be back testing other pairs Cheers Message me for more info
Short
by FXjoey90
USD/CAD Short Trade Hello everybody Happy Thanksgiving!!! This is my UCAD trade that got filled yesterday I am currently still in this trade it went against me a little bit but looks like it coming back into my entry. However i will not try a predict where this will go they way i think when i trade is the trade will either work or not Ladies and gentlemen its that simple!! Again thanks you for following me and supporting my ideas if anybody is interested in learning more just please contact me!
Short
by FXjoey90
EUR/USDJust received a Signal at 4pm today to go short The white horizontal line is my entry point At 4pm today i got the confirmed signal that the 10 ema crossed below the 20 ema on the 4 hr chart My 1hr analysis is a fib retracement from the most recent high before the red vertical to the most recent low before the red vertical line I am waiting for a pull back up the the 38.2 fib level I will re adjust my fib level if the pair makes a new low Thank you guys for following me!!!
Short
by FXjoey90
EUR/USD ShortHere is another trade setup in EUR/USD My previous trade in this pair was a loser . It came within a few pips of my profit but never hit my take profit. Yes i could have taken profit a few pips below my target but thats not in my rule book Only follow whats in your rule book and do not change because it will make you think its ok to change your rules. For this short trade i received the signal at 4am CST to go short The vertical line represents my short signal I then drew a fib from most recent high to most recent low before the vertical line on the 1 hr chart I will re adjust my fib if it makes s a new low
Long
by FXjoey90