Wednesday, April 1, 2009

The size - is a ring of the blades.

I want to share with some thoughts. The title I have written just because I liked the phrase, so about the sizes ( there people who can tell better in 10000 times) I will not write too much...
I have usual questions. What are the stages of the market? No, not in exact technical description even with recipe, but just by it`s nature, in psychology...
How do we understand it?
About the most excited imaginations I was reading in the book "Psychology of the Forex market". The things are more simple in my thoughts. According to my 3 classes of education... For example
we can take some super liquid futures.
At some moment the instrument can be very expensive in price ( but not everyone knows it) and from the start it moves to the opposite direction, to sell it with more "profit".
And vice versa, the are prospect for growing, at first it`s go down
that there could buy advantageously. Only the size makes the influence on instrument, because it`s size - just like a boss with cash and I run it. I remember the article about the Soros` hedge
fund, when they have sold lots of shares and than bought it more profitable. The commission has came to them and made a warning, that manipulation without the reason is not so bad, but it`s not
a good sign and it can bring some negative consequences of the law.
The Soros was sorry. I like him.
There need a few factors for spurt: the realization in changing, at the expense of who perform it, because the liquidity is the earnings, the culmination for the start - the news and the same
liquidity. There also is the term - the influence on the thin market, but I know it only in theory, so I will loose this moment. It means when someone`s size is a motive power on the market,
suffering from the temporary absence of liquidity.



Super liquid instrument is always overcoming on the diagram. It`s
always drifting and very solid...But not everybody see it. Why? It is
impossible to understand with to compare...From this group of futures, still are the same. Maybe the euro has gone for a 100 points not in the right direction and than will turn back. How to
understand? What if , it`s tornado - trend. And a such "pinned" market not always can be analyzed by the technical analysys in real. One of the most popular method of trading: to enter on the
pin, if the price will touch the level where are lots of things traded before. But frequently it smashes there. Sometimes you can loose on the cores...The comparison of the super liquid
instrument with the average on can help in analyzing of the super liquid instrument, or the comparison with a such instrument, which can be used everywhere. So, than, it can be seen that one is
in a stable tendency and other is overcame. So, you only have to search for a such gropus of instruments.
Trend. Very often it`s not a friend. It`s like tornado. It`s reasons are not right. But it has a power. This power can destroy a lot, and dust the deposits. Ideally it would be good to enter
the tornado in the chariot, if made it... Sometimes it`s hard to re-form morally. Looks like a theme about the trend is one of the most banal, but it`s very dangerous.




Enter to the market. The most silently enter, when the price is trying
to over jump. That, what was written about the overcome. So, for it`s decision it`s need to see, that market has overcame, and then you can easily use it as turning back, especially if the
price is related to LE or DE of the yesterday`s session.
When the price is overcame, it means the price is in the place where
it should be, and this is some arbitral moment. Find the divergence among the currency, comparing one pair with another as for me looks not profitably, it`s better to compare one group of
futures with another. There is another case with currency, because one currency comes into another. In futures of the other categories super correlation is not so noticeable and fast. It`s just
observes. I got some variants. But, let everyone decides for himself.

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