Support/resistance levels. How do I identify them? - page 14
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Levels are support and resistance lines.
So that's the point, levels resist price, price can't stay in these places for long.
here's the channel about levels
Thank you!
Don't you think there is a contradiction here?
There is no contradiction. A market order is a trade order given manually or by an EA/script. When this order is executed by the server, it moves the price in the market window and eats the liquidity. Unless it is 0.01 lots. After the trade order is executed, we have an open position that lives its own life, not affecting either the market or the price movement until it is time to close it.
There is no contradiction. A market order is a trade order given manually or by an EA/script.When this trade order is executed by the server, it moves the price in the market cup, eating up liquidity. Unless it is 0.01 lots. After the trade order is executed, we have an open position that has its own life, affecting neither the market nor the price movement until it is time to close it.
That is, atthe moment when this order opens a position. And if there was no liquidity and the market order was not executed, the price would not move? So it is not the order itself that moves the price, but its execution, i.e. the opening of a position.
So that's the point, the levels are resisting price, the price can't be in those places for long.
Where did you learn about it? Give me the link, I'll read it too.
I.e.at the time that a position is opened on that order. And if there were no liquidity and the market order was not executed, the price would not move? So it is not the order itself that moves the price but its execution i.e. the opening of a position.
Of course, the execution does move the price. But the order is primary because without it there is no execution.
The most important thing here is that the position that is already opened does not affect the price movement.
I arrived at this by experiment, which makes sense. The density of candlesticks on the vertical scale is different. If we look at the indicator "Volume Profile", it does not show real volumes because they are not known, but it shows the price presetting in one area. And we can clearly see that the channels that hold the price go along the minimums of presetting.
Sorry, I will use this picture again. Only the history for the indicator should not be collected for one day, but for a long period.
I came up with this experimentally, which makes sense. The density of candlesticks on the vertical scale is different. If we look at the "Volume Profile" indicator, it does not show real volumes because they are not known, but it shows the price presetting in one area and clearly shows that the channels that hold the price go along the minimums of presetting.
Sorry, I will use this picture again. Only the history for the indicator should not be collected for one day, but for a long period.
Is it yours? Is it commercial?
The futures change first, followed by the spot. Don't mislead newcomers.
Is the tail wagging the dog?
Is the indicator yours? Is it commercial?
Either way, this indicator represents the number of ticks coming into your broker's MT server. Even if the broker does not filter this number of ticks in any way (it happens, yes), it does not correlate at all with real volumes.
I.e.at the time that a position is opened on that order. And if there were no liquidity and the market order was not executed, the price would not move? So, it is not the order itself that moves the price, but its execution, i.e. opening of a position.
We have liquidity, for example, 100 lots at 1.1000, they begin to buy the level, let's call it "the wall". 10 people have bought 5 lots each, 2 people have bought 8 lots each and 68 lots have been bought in the end. The price was 1.1000, and it will stay that way until the remaining 32 lots are bought, and the next orders are placed.
It is not guaranteed that the Seller will not remove this volume and move it to a better price. It also can happen that 32 lots will remain, but a second seller will add another 50 lots on top of them - the wall will be stronger and the price will be harder to move higher because there might not be a buyer for this volume.
The same is true for buy-limit orders, a buyer can buy 100 lots, and there will not be so many sellers to make the price go lower.
As a matter of fact: we have traded, we have traded some volume, but the price has not moved down, which makes sense.
Without a common forex book, we do not see the full picture.