Formalising common approaches to trading - page 9
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Creating a TC is an intimate affair, and no one will post their findings here, but the general principles can be discussed.
But the general principles can be discussed.
pay close attention, and... ?
I want to specify: some of them think, that there is a price noise, and another part thinks, that every fractal has some magic properties and if you attach a fibu or a channel to this fractal, you can make a wish and...
I want to ask - is there price noise or not? If there is - why do you use only price peaks in TA? If not, then why is the price moving 5-10 points in different directions on a quiet market (thin market, low-volume market) - it looks like noise.
Creating a TC is an intimate affair, and no one will post their findings here, but the general principles can be discussed.
pay close attention, and... ?
I want to specify: some of them think, that there is a price noise, and another part thinks, that every fractal has some magic properties and if you attach a fibu or a channel to this fractal, you can make a wish and...
I want to ask - is there price noise or not? If there is - why do you use only price spikes in TA? If not, then why in a quiet market (thin market, low-volume market) the price moves 5-10 points in different directions - it looks like noise.
Price noise is price changes that are ignored by your system. It is not possible to account for everything, and there is no point in accounting for anything else.
you can make a wish and...
Started to read the book The Secret, watched the film, incomplete. The thought is materializable. Maybe it'll work.
I want to ask - is there price noise or not? If so, why do you use only peak prices in TA? If not, then why in a quiet market (thin market, low-volume market) price moves by 5-10 points in different directions - it looks like noise.
to share a lot of people don't seem worthy of that knowledge. Can't say I'm worthy either... Toad is the reason ;)
Not only Frog) I'm not sure, but if most people know where to sell and where to buy, the remaining liquidity will not be enough for everyone, volatility will rise, we will fight each other, profitability will fall.
What is needed to gain an advantage? On the basis of the trading organization (double auction) there are four forces at work. Quoted markets also essentially boil down to this pattern. The first two represent buy and sell liquidity (limit orders). The second two buy on the market and sell on the market (stop orders are essentially also on the market). Those for the market create the movements and in fact pay for them out of their own pockets (slippage). Limit ones counteract those movements. Dense Limit Sheet Areas create resistance and support levels/zones. Zones/zones of market surge and stop orders create price drive zones. These zones are unevenly distributed in price and time.
The task of trading is to learn at certain moments to correctly assess the ratio of potentials of these forces (not necessarily all four). Not only their current distribution, but also for some time ahead. For example, the same sanction is an attempt to estimate the accumulation of potential of buyers or sellers in the market. The potential is high and probably it will be realized, which will lead to the price drive in the corresponding direction. How to estimate this potential - there are several options. But they all depend on peculiarities of trading, typical traders' behaviour, limited capital at their disposal, etc. All of these can be called constraints.
I would like to understand exactly why this division into forces: "liquidity to sell, liquidity to buy, market buyers, market sellers".
1. What is liquidity to buy or liquidity to sell? What is the meaning behind these terms?
(For me, it is more usual to use the term liquidity to those who open a position, i.e. those who put money into the market, take the risk, thereby providing liquidity, and what order they do it with is a technical side, not an economic one).
2. Actually about the technical side. I can see how the market can only come into motion on market orders, without limit orders at all, i.e. without the "market side having to be stronger than the corresponding limit side". Aren't limit orders just a technical side of the trading organization? What is the economic concept that qualitatively distinguishes a limit order from a market order?
In a nutshell, what makes the market "feel" different between the execution of a limit order and a market order?
I would like to understand exactly why this division into forces: "liquidity to sell, liquidity to buy, market buyers, market sellers".
1. What is liquidity to buy or liquidity to sell? What is the meaning behind these terms?
(For me, it is more usual to use the term liquidity to those who open a position, i.e. those who put money into the market, take the risk, thereby providing liquidity, and what order they do it with is a technical side, not an economic one).
2. Actually about the technical side. I can see how the market can only come into motion on market orders, without limit orders at all, i.e. without the "market side having to be stronger than the corresponding limit side". Aren't limit orders just a technical side of the trading organization? What is the economic concept that qualitatively distinguishes a limit order from a market order?
In a nutshell, what distinguishes the market between the execution of a limit order and a market order?
Imagine absolute liquidity. It means that someone infinitely rich buys for example at 99.99 and sells at 100.00. He has placed limit orders of huge sizes and deals will be executed only at these prices (if the minimum price step is 0.01). The price will not move, no matter what)))
Better yet, just open a demo at a broker on the exchange (or ECN) and see what the market is all about. The double auction is the main pricing method today and it only strengthens its position in all markets (including the currency market). Limit orders and market orders are an integral part of this mode of trading.
The second most common match is over-the-counter trading of the negotiated type. This is when a narrow circle of traders and not all are equally trusted))) The announcement of buy/sell prices by the participants is not binding, but the subject of tête-à-tête discussions)))) But even this scheme, like dealing, boils down to a basic one - there are those who offer a deal on their terms: buy/sell, and those who accept their terms: buy/sell. Hence the 4 powers
Not only Frog) Not sure, but if most people know where to sell where to buy, the remaining liquidity will not be enough for everyone, volatility will rise, we will fight with each other, profitability will decrease.
pay close attention, and... ?
I want to specify: some of them think, that there is a price noise, and another part thinks, that every fractal has some magic properties and if you attach a fibu or a channel to this fractal, you can make a wish and...
I want to ask whether there is price noise or not? If there is - why do you use only price spikes in TA? If not, then why is the price moving 5-10 points in different directions on a quiet market (thin market, low-volume market) - it looks like noise.
That's because they have a different understanding of what noise is.