Because lots of traders use candlestick patterns (HH, LL, doji, stars, engulfing bars, hanging man and a bunch of other patterns) to make assessments about future price movement. The patterns are suppose to show the current "emotion" of the market ...

Yeah, Jolita, I deleted my posts after I fell off my high horse. Sorry about that.

Hi D, look up the posts by DonPato with regards to price movement and liquidity, but in a nutshell, price moves from one point to another due to the orderflow of incoming market orders hitting the standing bids and asks. I personally don't trade ...

Waveskierrob posts mainly in the GBPUSD thread, but he has a thread where he describes his trading approach in detail. Hedging/averaging trades without prediction | Forex Factory

I went to the Mataf website and there was no mention of the number of bars used to calculate the correlations on the various time frames.

You can Buy (or Sell) negatively correlated pairs such as USDCAD/AUDUSD or Buy/Sell (or Sell/Buy) positively correlated pairs like GBPUSD/EURUSD. Just be aware that their positive (or negative) correlation is not always "high", therefore I ...

My correlation algo is a rolling N-bar period...in the case of the plot shown in the previous post, N=100 bars (daily time frame), and my data set hasn't been updated since Feb 17th. Importantly, MyFxBook doesn't indicate how many periods is used to ...

Z-score relates to the degree of deviation of a dependent variable from its mean assuming a normal distribution of the dependent variable, but since price versus time is not normally distributed (due to kurtosis), a Z-score is not appropriate - but ...

not always the case. The AUDUSD/USDCAD neg. correlation can decouple (based on hourly and daily data analysis), hence the reason for the martingale trades. Anyone notice the 70% DD in early 2022?? This was due to a 2-month decoupling of the neg, ...

Yeah, thanks for your input Ryan, and that is what I thought as well... the 20 min lag is a killer for lower time frame trading. With that said, I did take screenshots of the Order Book (OB) for EURUSD on an hourly basis from 4:00am EST to 10:00pm ...

Thank you for the answer Rick. Another question, since there is no true volume/DOM etc., in Forex, what if you had access to the order book? With that said, Oanda offers us B-book clients an order book that's updated, I believe, every 20 minutes. ...

Rick, I'm not necessarily disagreeing with you, but - and I don't remember the specific details of the academic research article- the authors state that tick volume could be used as a proxy for true volume, or probably better to say, "degree of ...

Interesting idea, but tick volume is not true "True" Volume (in terms of the actual volume of contracts/shares, etc., traded). So, (@Lekkim) I'm curious how volume can be used as an indicator for trading Forex? I apologize in advance if this ...

You caught me

Hi Headland, No disrespect, but probabilities-and trading edges- are still, technically a "guess". When you flip a fair coin, you absolutely know that you have only two outcomes, and based on the law of large numbers, those two outcomes will ...

Dave, Yes, but as I pointed out in the previous post, a rise in the GBPJPY can be due to: 1. Both USDJPY AND GBPUSD rising... 2. USDJPY rising whilst GBPUSD is falling, but the price move in USDJPY is > the downward move of GBPUSD 3. GBPUSD rising ...

lol.. grand conspiracies are always the best...

GBPJPY = USDJPY * GBPUSD i.e. you don't directly trade GBP against the Yen The GBPJPY price is dictated by GBP against the USD, and USD against the Yen. GBPJPY will go up: 1. if both USDJPY and GBPUSD are rising (and vice versa for falling GPPJPY) ...

Jeezus, there is no "conspiracy"... the EURUSD is dropping because, right now, traders deem that the USD is stronger than the Euro, on the other hand, the GBPUSD is going up, right now, because traders feel that the GBP is stronger than the USD. For ...

Trading is always a "guess" (a.k.a., probability).. best not to think in absolutes...