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My thoughts and strategy as in trying to become a scalp trader!
Today, I missed one/two opportunities... because well life is troublesome sometimes ahum if not all the time!
I am glad I am skipping the first hour on the DAX starting from the opening 09:00 to 10:00 CET, today I could see a good reason why I have that rule.
I took no trades so far. Am excited to show a good real example, as in then maybe I could get more feedback or input.
But I have to warn you, while I am open for all suggestions, I am pretty stubborn due to the fact, I know a lot and have seen things happen over the years...
Since I operate on a 15 minute time frame, I can note this: we are currently residing in a new channel formed today with a constant attempt to break the low. But for now we are doing it pretty need with a small consolidation after a new low is formed, before dropping lower again.
This reminds me of a 1,2,3 or Ross Hook trading. Which I never took out for a drive... but they seem to work on days like today.
Can you help answer these questions from other members on NexusFi?
Maybe what RielA wants to say is as simple as : market moves when a market order hits a limit order. Regardless any EMA or BB or RSI or anything else. He probably wants to point out that understanding the mechanics of how it "really works" is crucial.
Just my 2cents.
I wish you the very best!
Its most certainly the start of it or the mechanicsas you so well placed it!
Considering there are always two prices (bid/ask) just having a market order trade into a limit is still not enough to move the market however. Trading the 10 yr Notes ive seen as many as 12k+ contracts trade into the limit and have it ALL be absorbed at one price. Prices will start moving when the demand from the market orders has to move higher (or lower) to find the liquidity needed.
What we are trying to get at here is that when you are on the scalping time frame this is the kind of information that has the largest impact. So ask yourself again, how does 5 min, 15 min, etc Candlesticks, Bollinger Bands, Moving Averages etc. represent this information? (im not suggesting that it entirely doesn't or does, im trying to get you to ask yourself the right questions as you develop your methodology)
Thank you for your comment, if I understand you correctly, markets move when the price of orders are being hit, and these hits are causing the ups and downs in the market, right? Hence demand/supply
Of course I agree, EMA/BB/RSI are statistics, but these statistics show us the behaviour of the market, does it not? And that behaviour is (in)directly influencing -->
Or am I wrong, or misinterpreting, I often wrap my mind about it, three/four times in a row... so nothing comes easy for me.
Exactly, what I can't see for example is WHERE a BUYER/SELLER has placed a large order at a certain price level. That information is something I do not see. While this is important, because you can then clearly see, if a price level is being supported or not. Like in real time/live. I am assuming the lines tell the story, but the story is of course being told by the orders in the book, which I think again... I don't have access too as a CfD trader at FXCM. Hence why sometimes... you have days at which no tool is helpful, because they are all saying the same, yet the market is moving the other way. Well the only reason I can imagine that would be, is, when the market keeps rising for example, there aren't enough people selling their contracts at the current price levels, which you can probably see better if you can check the order book.
Then again don't you also have 'live' trades, which will be in the book for like an instant of a second because they are immediately hit?
I also like to approach it the other way around, like the statistics of BB's and MA's are influencing the orders being made as well.
I am not the one being a pro here, am trying to become one for way to long already... your help is much appreciated!
I strongly advise you to launch your trading platform and open a DOM. You will see two columns, bid and ask. All you see is limit orders. They dont move the market.
If a market order hits a price, all the contracts are whiped, and the market makers or somebody puts limits orders where the contrats were removed, then price moves.
Yes, as i mentioned a few posts back you are at a disadvantage trying to scalp a market that does not have volume information available to you. You essentially need to find a way to trade volume/market concepts without using any volume indicators. again, this is because you are on a scalping time frame. maybe to substitute "volume" specifics with "activity" specifics. its still imperative however that a fundamental understanding of market structure is to be had so one can know how to appropriately substitute the two.
So we turned your journal into a totally different topic, but believe us it matters. It was my first time posting here and I hope it helped.
Try to look at any video showing bookmap on youtube then you can understand how much you are at your disadvantage (-not to say no change-) when you are scalping without those informations.
Please excuse me for changing the topic in your journal but we gave you the informations as we hoped we had it before.
You guys maybe know as well if this is available at FXCM, because I am trading CfD's not futures.
I have watched a YouTube video about BookMap, which certainly looks handy. But it probably cost money to use it. I will try to use NinjaTrader to open up a DOM as you guys suggested, just want to know if that's useful in trading CfD's or if its only possible when trading futures?
Anyway a good example of my strategy can be found in this picture below for today's trade, which I didn't took, because I was still asleep. Which happen to be the case a lot!
These are the setups I am looking for. We had support from the MA200 to enter a short trade (because the MA200 was a resistance in our case). RSI was high but not overbought unfortunately, but our candle got above the 32/3 BB, which is in my vocab the jackpot under these stable circumstances. It made no matter when we entered, we could have entered a good pick above the 20/2 BB for a good first 10 points. Or even put a second order in once we hit the 32/3 BB for an even quicker 10 points.
Pink line = 155MA
Turquase line = 200MA
I hope the rest is clear as it is without explanation.
