I stumbled across A professional trader on youtube named Martin Cole. He has opened my eyes to the real world of FX, to understand "why" the market moves the way it does instead of just trading blind off of signals and the formations the chart portrays.
This is what most traders do, they use indicators and candle formations and well.. It says it all really.. He trades Forex without a strategy. He plays "off of the Market Makers own Strategy" He says they use a business system which is as follows. If they want to buy low and sell high they "important!! What does this mean? They use us to oppose there trades. They need us to sell so they can buy.. How do they get it? You see Market Makers have access to information we do not.
To put it simply were all using the tools they want us to use so that they can trick us into placing trades, and they will use this to there advantage whenever they want to add to there accumilation by eating up our stop losses and add to their accumilation process When we place a sell order below a key support line..
They eagle eye the bulk of buy stop losses above the support line and target this area to get buy orders from us. Why do we all get stopped out only to see price turn around 1 pip later and go on to what would have been a massive profit?
This is the "only" time the Market Makers invite us to join in. It's supply and demand. When they oversell this is the retrace, not only this, they will happily play off the fear in traders and use our SL for accumilating mre buy orders before prices rise again.
This process repeats until exaustion and then goes back into another accumilation phase to start all again. This is why we see zig zags formations. You see it's not good enough to now that fibs work some times.. Now I have surely misses out vital points here and probably not explained it very well. But now I actually understand why price moves the way it does. So I will never look at Forex in the same way ever again.
I will be plotting the likely areas where traders will place Stop losses and focusing my attention closely at these point because that area is likely where price is going.
The magic to this, is that you can get winners by default. Even the Market Makers have to show their hand eventually. This might be shown in the form of a false break. Why was there a fault break? If your tricked into the belief that price will fall but the Market Maker is only accumilating buy orders on the other end of your trade The trick is waiting for them to reveal their hand and then getting in the trade at the right time.
Don't be a victim of there manipulation. Infact I feel I understand what i'm looking at on the screen alot better but jesus To know when the Market Maker is actually going to go into stage 3 "profit release" is very difficult Im at the stage where im staring at the chart thinking "hmmm" but i think soon I would be able to read the mind of the big boys purely by looking for when they show their hand..
Some people say that Market Makers do not do any of this, that they do not manipulate the market. It's a business and they have a model. The Market is not too big to control in this way. The various Market makers communicate with each other and take us traders all for mugs..
I truly beleive what Martin Cole has taught is true and very very helpful. But don't sign up to his course. I'm unsure how all this works with multiple time frames.. I'm also unsure how it works with news. But that;s for another day. That's not exactly news. Item 2 is what you call 'stop hunting', which is done mainly by large institutions, the real Market Makers; do not confuse them with the broker type 'Market Maker' as oppesed to broker type 'ECN'.
Yes I guess its not exactly news but I reckon you make profits? Do most people make profits? Yes I refer to Large institutions not brokers. I'n not totally confident in all this yet but i'm on my way. Yeah, you're right, and that's one topic which the BabyPips School only touches fleetingly in one of its chapters. You've written a good post, which will make many people who have not realized this yet understand the markets better. Every time you open and close a trade you lose the spread.
This adds up to a significant value if you trade frequently. Some market maker brokers also freeze their platform during news announcements or increase spreads by pips which is quite common. Since Forex is not tightly regulated as other markets there is not much NFA or similar organizations can do. Indeed, as long as you dont making money in phase 3 only to give it back to the Market in stage 1 and That's what most people do.
Ahh, Epidot you have been enlightened, it is the 'Holy Grail' in a way, and you don't need to buy the book, the very best information for trading this is right here on Babypips!!!! The first part is the funniest item in your post The second part is very true, but they or anyone else doesn't have to try very hard to achieve that aim. He may well be regurgitating information but to call it nonsence?
It's all relevant information which occurs in Forex and most traders don't learn this. What does that tell you? I see things more clearly now. Keep that frame of mind going The reason said his course is a ripp off is only because its a monthly rental and very expensive.
It includes a PAT system he created which i've looked into and can be done manually so therefor a rip off. You make out everyone is a thick as a plank thats why they lose? Yes I have been enlightened but babypips doesn't really touch on why the market moves.. It's talks about systems and methods only. Think Ollie mentioned that above. Being enlightened doesn't really help because i'm still looking at charts thinking "how can what i've learnt help me" and i'm not getting very far lol..
Like I said in my first post, it isn't exactly news Making money from this sort of info even if it's only six pounds isn't exactly ethical though. After all, it's publicly available But then, so is the content of most ebooks.
Interesting theory but to be honest if you look past the market makers and small traders. The guys how really move markets and other options are the commercials have really seen this in action The last 3 weeks on fiber who's been long all 3 weeks commercials all the way. Get on side with these guys as covered by larry Williams also if you look at inter market relationships you will see past all the noise I'm not saying stop hunts etc don't happen I am just starting to get who is moving the markets.
Larry Williams covers it very well in his book cot reports. Although he has suggested that even now the dynamics stated in this book have changed since he wrote it.
Market makers or whatever you're attempting to describe these entities as, don't need to lay such elaborate traps or even be half as clever as this guy or you think they are. You're demonstrating exactly the type of behavior that stop runner described in one of his comments. You haven't properly read or digested what he said at all have you. He didn't say everyone is as thick as two short planks at all. Unless you work in the ivory towers of the institutional investors banks, large commercials , you're not going to be party to half of what passes in their attempts to part you us from your our money.
I agree with Oliver, the more you know about the people who are manipulating your market, the better off you will be, and more importantly, hopefully, more successful. I don't think epidot meant literally ' everyone ' in his post.
It's a little uncharitable to criticise him for nothing less than a genuine attempt to disseminate potentially valuable information that most new traders will not have been aware of.
While ever mindful of the need to make a point, perhaps a slightly more generous view of the OP and a little encouragement would be more appropriate, after all, regardless of experience, we're all here to try to become better traders? That may be so, but there are a disproportionate number of those at the sharp end of these institutions that have maths PhD's. Worth a look if you're struggling with it!
Try this for a start - Market Profile. You bring up some good points, and I do actually teach why the market moves the way it does, how to read the order flow behind these markets, how to determine accumulation buying, as that is the point of reading price action - to understand the institutional order flow behind it.
Although I think the things discussed in here only cover some of the behaviors of market makers, and how institutional order flow plays out. But feel free to check out my thread on Forex Price Action and how to read the order flow behind it as I share this and some of my personal trades as well. Market Makers Strategy Beginner Questions.
That's why they are called 'Market Makers' I'n not totally confident in all this yet but i'm on my way thanks.More...