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TPO and forex

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Grantx View Post
Ive been reading through the DTS per market prep thread and Peter is a very smart chap. I really like his preparation method. My question is does anyone know if TPO analysis works in bucket shop... I mean forex? Does it require level 2 data at all?

Prep like Peter Davies/intraday analysis like feibel and Ill be unstoppable.

Some data providers provide volume data for cash currency pairs. Of course, as forex is not exchange-traded, one would need to aggregate transaction data from all (major) brokers to get a more accurate picture. In lieu of this, you can make an assumption that the transaction data for a given broker may be a sufficient proxy, though that assumption may not always hold. Also, you can use the 6E futures contract which is quite liquid. This is all for volume profiling.

You mention TPO analysis, which is not volume-based, and so of course it can be plotted for anything which has a price.

Level 2 data are quotes, not transactions, and thus have nothing to do with anything in this context; I would recommend you study some information on market mechanics to gain a better understanding of this.

Would just throw in that what makes you unstoppable may have a little to do with prep, a little to do with analysis, but it has a LOT to do with the gray matter between your ears. Granted, it's hard to focus on that if the other is not in place.

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