› Forums › Trading Systems Discussion › Nature of Markets – Randomness & Probability
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- July 22, 2015 at 11:50 am #7442
You just proved my point: Forex is EUR trend combined with USD trend, and NOT EURUSD trend. So EURUSD is NOT random, but a product of EUR trend and USD trend…
I just updated my previous reply so take a look at it again please. My point is if EUR is random and USD is random then the resulting EURUSD is ALSO random. You will see “trends” in a random chart as well.. we are only human, we see patterns even in sand. But I agree that there are “trends” but within these “trends” there are thousands of random events that occur in each day, even these trends are decided by random news events and events that occur around the world. The only person I know who could predict these events and understand the cycles of nature was Gann. I say over and over to you, YES the markets are NOT Random and also Radnom at the same time.. haha so there is nothing that you have to do in terms of proving that they are not random, there are TONS of proof online where people say it is not random. This is the place to learn and understand how it is not random and to learn ways to harness that. I’m sorry, I don’t have the time to write this carefully.. about to get ready for work. I hope you see my point now.. can you see how markets could be random?
My point was related to your statement that EURUSD or GBPUSD (just an example) are random.
They are NOT!
Forex is CURRENCY based, not currency-pairs based.
You can argue that EUR and/or USD are random, but not their product, EURUSD.
I will argue that currencies are also not “random”. True, they have “noise” patterns attached, but they follow perfect economic sense.
But that’s another issue on another subject.
Have a good and productive working day!
G.
July 22, 2015 at 1:44 pm #7443Few trades from this morning.
July 22, 2015 at 10:43 pm #7444I will argue that currencies are also not “random”. True, they have “noise” patterns attached, but they follow perfect economic sense.
So you are saying you know exactly what all traders are thinking and doing? What each trader does or think is a random event on itself. Each news event, do you have foresight to? Nobody knows what each news release is going to yield, it can be good or bad news for the currency, also we have climate and a million factors that decide price, a perfect random event. Within that time window, it is a random event. This is why almost all good traders say, you can only control your entry and you can’t control the outcome. You don’t know what the outcome will be because the events to come are completely random. Central Banks can decide any number of things, climate disasters can happen any day resulting in this noise we call the Forex markets. If you say markets aren’t random, then you must be placing perfect trades with zero draw-down making billions if not trillions a day!
Also, Rand(EUR)/Rand(USD) = Rand(EUR/USD)
Let me back that up with a chart.. these were all generated with pure random numbers. First the Rand(EUR) and Rand(USD) and Rand(GBP). Then I took those numbers to produce EUR/USD, GBP/USD, EURGBP
See the “trends” and the “triangulation”? Looks just like the currencies which we trade!But as I said before, there is a non-random factor to the markets as well because it’s humans after all that trades, and humans are predictable. We know each month on a certain day certain news events are released, this is what Gann used along with astrological events to predict the markets highly accurately.
But the point of this thread is to harness the power of randomness.. how can we do that?

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You must be logged in to view attached files.Focus, Patience, Determination & Order in chaos
July 23, 2015 at 6:41 am #7446I will argue that currencies are also not “random”. True, they have “noise” patterns attached, but they follow perfect economic sense.
So you are saying you know exactly what all traders are thinking and doing? What each trader does or think is a random event on itself. Each news event, do you have foresight to? Nobody knows what each news release is going to yield, it can be good or bad news for the currency, also we have climate and a million factors that decide price, a perfect random event. Within that time window, it is a random event. This is why almost all good traders say, you can only control your entry and you can’t control the outcome. You don’t know what the outcome will be because the events to come are completely random. Central Banks can decide any number of things, climate disasters can happen any day resulting in this noise we call the Forex markets. If you say markets aren’t random, then you must be placing perfect trades with zero draw-down making billions if not trillions a day! Also, Rand(EUR)/Rand(USD) = Rand(EUR/USD) Let me back that up with a chart.. these were all generated with pure random numbers. First the Rand(EUR) and Rand(USD) and Rand(GBP). Then I took those numbers to produce EUR/USD, GBP/USD, EURGBP
See the “trends” and the “triangulation”? Looks just like the currencies which we trade! But as I said before, there is a non-random factor to the markets as well because it’s humans after all that trades, and humans are predictable. We know each month on a certain day certain news events are released, this is what Gann used along with astrological events to predict the markets highly accurately. But the point of this thread is to harness the power of randomness.. how can we do that? 
That’s NOT what I said, and don’t “translate” me according to your needs.
You are confusing “Random” behaviour with “price Prediction”.
Our ability (or lack of it…) to predict future price have nothing to do with certain currency trend behaviour, the inter-relations between currencies – which are governed by economic rules.
Want to check that statement against your “random” theory? it’s simple:
For every major news event (such as good NFP, exchange rate change, etc….) show me “random” currency behaviour.
i.e. good NFP news should result in 50% up and 50% down, exchange rate increase should also result in random outcome – according to your “random” theory per currency.
Currencies behave according to economic rules, whether we know and can predict them, or not.
Also, the Forex market traders have different interests, and not all of them trade according to short term speculation.
The “random” effect only manifest itself in the very short term “noise” that is attached to every tick and bar, no matter the TF.
G.
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This reply was modified 10 years, 9 months ago by
gg53.
July 23, 2015 at 7:37 am #7448Hi Brother Savero, Nice Thread and Subscribe..
Please allowed me to post here since this is the latest trending topic in this beloved forum..
For all my Brothers and Sisters, please forgive me that I’m not very active lately in forex community, because I must deal with my big family companies. Since my Uncle past away several weeks a go I must handle and manage several family companies in several cities here in Indonesia, because now I’m the oldest man in my big family.. lol. (damn I hate this… hahaha).
So Brothers/Sisters, at this time everything start to running smooth, so I could comeback to my forex hobby..But again forgive me if I can’t continue several coding projects, I don’t know when I could make it done.. lol.
Regarding this thread, I already read in general from previous thread, and in my opinion, this is great idea, not new but with more smart way to do it..
About the randomness.. , I agree with brother Savero, we talk about ‘randomness’ not the unpredictable random. So what brother GG said that market is not random is 100% correct, but inside that not random market movement, there always ‘randomness’ in it’s movement..
On what we called as ‘movement’, in my personal opinion is an agreement or interaction between party involved. the ‘triggers’ and the ‘followers’
the root is global economic situation, the actions and reactions, Currencies interaction is ‘reaction’ , so it can’t be ‘random’ it should ‘react’ according the ‘action’, and the reactions base on perception related to the actions. and the action itself not always base on ‘economic event’. Don’t you remember market reaction when Tsunami hit Japan ? or when 911 happened.
So in my personal opinion, ‘EURUSD trend’ is interaction of ‘reaction’ between USD trend and EUR trend. You can trade just USD currency, and this USD movement is not random. If you could ‘read’ the main direction of this USD movement (using inter market analysis) , and you trade all the currencies pairs related to USD in USD side, the result could always predictable..
Just remember that all that scheduled ‘news’ is only manipulation tools, not the real fundamental events, so the movement ‘reaction’ after news event could always predictable whatever the news ‘value’ is.. because the ‘reaction’ step is always from normal range to deviation range and back to normal range again (correction movement to balance the fair value or equilibrium ) this is prove that market is not random but of course there always ‘randomness part’ in their movement. Market is ‘an agreement event’ and always start with an auction event.
Hope it help and Best Regards
MTHIntuition, Experiences and Common sense..
http://www.binaryoptionsedge.com/July 23, 2015 at 7:59 am #7449Ok this just simple example on probability.
let say that I have unlimited capital, then I only trade EURUSD pair. and I only open long positions, and I only open long positions ‘if’ EURUSD price under 1 (parity).
and I open 1 long position every London open every trading day (as long as EURUSD under parity), without any SL, and my TP is parity (EURUSD = 1).
So, what is my probability percentage that EURUSD price will go to 1 and what is my probability percentage that EURUSD price will go to 0 (zero), and as we know if EURUSD price is zero meaning that there is no Euro currency..lol. and in this case, do you think you should set your risk calculation until zero ? if your capital could cover ‘draw-down’ bellow zero of all your active positions, your probability to margin call is zero right.. and that meaning zero risk probability.
And with zero risk probability, do you still worry about any market ‘randomness’ ?
So my dear friends, all this fundamental and technical analysis main purpose is basically because you have very limited capital to trade.. lol, and because of that you should select where you should put your trade positions in the right place and in the right time.. because you capital can’t cover your draw-down.
If you could think correctly about this, you will understand how important the value of parity(1) is.
Hope it help and best regards
MTH
Intuition, Experiences and Common sense..
http://www.binaryoptionsedge.com/July 23, 2015 at 9:52 am #7450Sincere condolences to you and your family Kiads.
July 23, 2015 at 9:54 am #7451Ok this just simple example on probability. let say that I have unlimited capital, then I only trade EURUSD pair. and I only open long positions, and I only open long positions ‘if’ EURUSD price under 1 (parity). and I open 1 long position every London open every trading day (as long as EURUSD under parity), without any SL, and my TP is parity (EURUSD = 1). So, what is my probability percentage that EURUSD price will go to 1 and what is my probability percentage that EURUSD price will go to 0 (zero), and as we know if EURUSD price is zero meaning that there is no Euro currency..lol. and in this case, do you think you should set your risk calculation until zero ? if your capital could cover ‘draw-down’ bellow zero of all your active positions, your probability to margin call is zero right.. and that meaning zero risk probability. And with zero risk probability, do you still worry about any market ‘randomness’ ? So my dear friends, all this fundamental and technical analysis main purpose is basically because you have very limited capital to trade.. lol, and because of that you should select where you should put your trade positions in the right place and in the right time.. because you capital can’t cover your draw-down. If you could think correctly about this, you will understand how important the value of parity(1) is. Hope it help and best regards MTH
Welcome back Kiad and success in business.
Just to add to your post: There is no such thing as BUY EURUSD…
By doing so you are EXCHANGING “worthless” USD with “priceless” EUR. “worthless” & “priceless” are, ofcourse, in your own current opinion, hopes and length of time you intend to hold this position….
Any discussion on the “value” of EURUSD or its trend direction is misleading if you exclude USD value and direction and EUR value and direction, which are, BTW, NOT random…
G.
July 23, 2015 at 3:48 pm #7452My condolences Kiads.
July 23, 2015 at 3:51 pm #7453Welcome back Kiad and success in business. Just to add to your post: There is no such thing as BUY EURUSD… By doing so you are EXCHANGING “worthless” USD with “priceless” EUR. “worthless” & “priceless” are, ofcourse, in your own current opinion, hopes and length of time you intend to hold this position…. Any discussion on the “value” of EURUSD or its trend direction is misleading if you exclude USD value and direction and EUR value and direction, which are, BTW, NOT random… G.
Yup, you are correct. In my personal opinion, for longer period of time there’s no trend at all, we only have cyclical movement of currencies as a curve. And because parity of pairs is for example 1 usd equal to 1 euro, and 1 = 1 equal to zero, so I try to measure that cyclical curves base on that parity. I create simple 10 ranges from zero to parity, and 10 ranges from parity to 2. every range equal to 5% so the parity is 50% the zero is 0% and the 2 is 100%. By Checking history of currencies movements we know that their cyclical movements was chain reactions each others and well structured, and everything that has structured patterns can’t be random.
Best Regards
MTH
PS. Thank You My Brothers Jhlewis and Edington
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This reply was modified 10 years, 9 months ago by
MTH2014.
Intuition, Experiences and Common sense..
http://www.binaryoptionsedge.com/July 24, 2015 at 1:44 am #7456Nice topic
i studied a little about that and if we believe that this market is random or has a random part so you should know that the market movement is not separate so the Probability of price to go up or down for the same distance from certain point is not 50% for each selected point but you should study the history of this point and measure the percentage for each point higher or lower than it because when price come to our point we know that the price has more probability to go to one point than otherJuly 24, 2015 at 9:05 pm #7458Hi Kiad,
Sorry to hear about it, my sympathy with you and your family.
Bomi
July 25, 2015 at 8:37 am #7459The CORRECT way to look at the Forex market and its “Nature”:
EURUSD as an example:
Use good Currency-Strength indicator, preferably one with lines and not just numbers or histogram.
Treat EUR & USD currency strength as force/power Vectors, just as in Physics.
Each such Vector have “power” or “force” which manifest itself by the line direction and angle degree – multiply by that currency market share factor.
The combined Vectors forces of the EUR & USD will give you EURUSD direction & movement strength.
Open any basic Physics book and it will show you how to get the resulting product Vector of two combined Vectors (in our example case: the EUR Vector & the USD Vector).
Combine that result with trending/ranging market condition and above average or increased Volume – and you should me more than Ok…
It will NOT give you how long that movement will sustain, or how many pips it will produce or any other long-term “futuristic” wisdom.
G.
July 25, 2015 at 10:36 am #7460[tl;dr
– I believe that we are actually all in agreement that the majority of market action is pseudorandom noise generated by the mechanics of currency crossing, the dark movement of large banks and firms, the chaos of an unknown number of retail traders following their varying-degrees-imperfect trading strategies, and so on. It is neither fully random nor fully predictable. Once that’s settled, we can move on to look for specific technical edges.]In philosophical debates, much time is (or should be) spent at the beginning to define what a given word means. Many (so many) disagreements stem from two or more debaters insisting on using the same word for different meanings. (Art, spirit, random, ~)
In scientific debates, hypotheses are meant to be tested empirically. Disagreements often still arise from one debater disagreeing with the various hypotheses used to define a thing, or the validity of the methods used to test a hypothesis deemed to be empirically true.
Without dipping into the tomes of those who came before us, even something as condensed as wikipedia’s entry on randomness shows us many validated and proven-useful definitions of randomness — http://en.wikipedia.org/wiki/Randomness — and I’m not linking this to say that you guys here need to read it, I’m only doing this to back up my assertion that there are many definitions of randomness, and some of the disagreements here come from that.
Before drifting this way in life, I came from a background of videogames, and it was frequent that somebody from another medium (for example the film critic Roger Ebert) would assert that games are not and can never be art. I think that’s as much a straw-man as debating whether market movement is random. First we would have to all agree on what the definition or art or randomness is. We often can’t.
Nor do we need to — at least as an exercise of ego (~MY DEFINITION IS MORE RIGHTER THAN EBERT’S~) — but it’s extremely helpful as an intellectual exercise. In striving to define which dimensions exhibit what we may or may not agree to be randomness, we determine more specific and sophisticated means to analyze the market.
(I wrote that much until about 3:38 in the AM last night, and then set things aside for later. Going to continue now, but it might seem slightly disjointed, 24 hours later.)
I think that the most apt definition for the type of randomness we witness in the market is ‘pseudorandom’. Quoth the Wiki: http://en.wikipedia.org/wiki/Randomness#Randomness_versus_unpredictability
“Some mathematically defined sequences, such as the decimals of pi, exhibit some characteristics of random sequences, but because they are generated by a describable mechanism, they are called pseudorandom. To an observer who does not know the mechanism, a pseudorandom sequence is unpredictable.”It’s tantalizing to say “Behold! When I randomly generate 1 pip ticks up and down, it comes out looking like regular charts!” but if you were to throw in a ‘weekend gap’ after every 5 days worth of ticks, does that randomly generated walk retrace as consistently and deliberately as we see in reality? Does it gravitate toward 00 lines? Does it meet congestion at previous volume climaxes? We have already come to a consensus that over larger periods of time, certain non-random patterns will emerge, so that’s not an issue.
My point is that such simplified all-random charts risk the obverse of this later passage: “One intriguing aspect of random processes is that it is hard to know whether a process is truly random. An observer may suspect that there is some “key” that unlocks the message. This is a foundation of superstition, as well as a motivation for discovery in science and mathematics.”
To assume that there is actually NOT a “key” at any given moment is a risk in itself. Many scientific hypotheses end up with misleading or null results because their testing methodology was too simple. It’s like throwing the baby out with the bathwater because nobody included a baby detector.
Saver0, your further studies in repeated entry with 5 pip TP/SL are empirically interesting — which chart(s) did you use for them? Surely the numbers differ between EURUSD and USDDDK, or from one year to the next. And what if you only trade during Asian session versus only NY? Having an accurate sense of the ‘noise floor’ for any given currency at any given time seems useful to me…
Tangentially: Kiads, you and your family have my condolences as well. I believe it’s good that they have someone like you to rely on in times like these, but even more good if their situations are stable enough for you to come back to your ‘hobby’. I have some questions to ask you in your 7lines OHLC thread, but don’t want to be a bother — are things running smoothly enough for you that you wouldn’t mind?
July 25, 2015 at 2:42 pm #7461My condolences to you and your family Kidas
Glad to see you back on the forum my friend
and thanks for participating on this tread. Also take a look at this thread as well
http://penguintraders.com/forums/topic/nature-of-markets-power-of-probability-compounding-1pip/Saver0, your further studies in repeated entry with 5 pip TP/SL are empirically interesting — which chart(s) did you use for them? Surely the numbers differ between EURUSD and USDDDK, or from one year to the next.
Bravo PMMforex, really well put together response, my respect to you

To answer your question, I ran the test on EURUSD tick data and it looked at I believe 1.6million ticks around 2012-2013 year range. Forgot the exact settings. And the probability changes as I increase decrease the TP pips. This is due to the trends in the market. But there is a certain amount of randomness to it as well. It really seems to be that this randomness is fixed to the zoom level. Forex is a good example of a fractal behavior with candle data. Within each higher period candle is a fractal of itself exhibiting its own randomness in the high zoom level. It’s hard to explain.. It’s like how 1,2,3 pattern exhibits in Weekly, Daily, Hourly, etc charts. Within the Weekly 123 patter, there are many hourly 123 pattrns, etc.
http://www.quora.com/What-is-the-best-way-to-describe-a-fractal
———————————————————————————-A type of geometrical shape or pattern which is made up of smaller similar types of shapes or patterns, or vice versa.
In a fractal, one would see similar patterns or shapes if one zooms in or out, i.e., at all scales, wherever you zoom, unlike other geomterical shapes or patterns.
A coastline, a stock market graph or a tree would be some good simple examples of a fractal.———————————————————————————-Focus, Patience, Determination & Order in chaos
August 5, 2015 at 7:20 am #7558Hi Brother Savero, Nice Thread and Subscribe.. Please allowed me to post here since this is the latest trending topic in this beloved forum.. For all my Brothers and Sisters, please forgive me that I’m not very active lately in forex community, because I must deal with my big family companies. Since my Uncle past away several weeks a go I must handle and manage several family companies in several cities here in Indonesia, because now I’m the oldest man in my big family.. lol. (damn I hate this… hahaha). So Brothers/Sisters, at this time everything start to running smooth, so I could comeback to my forex hobby.. But again forgive me if I can’t continue several coding projects, I don’t know when I could make it done.. lol. Regarding this thread, I already read in general from previous thread, and in my opinion, this is great idea, not new but with more smart way to do it.. About the randomness.. , I agree with brother Savero, we talk about ‘randomness’ not the unpredictable random. So what brother GG said that market is not random is 100% correct, but inside that not random market movement, there always ‘randomness’ in it’s movement.. On what we called as ‘movement’, in my personal opinion is an agreement or interaction between party involved. the ‘triggers’ and the ‘followers’ the root is global economic situation, the actions and reactions, Currencies interaction is ‘reaction’ , so it can’t be ‘random’ it should ‘react’ according the ‘action’, and the reactions base on perception related to the actions. and the action itself not always base on ‘economic event’. Don’t you remember market reaction when Tsunami hit Japan ? or when 911 happened. So in my personal opinion, ‘EURUSD trend’ is interaction of ‘reaction’ between USD trend and EUR trend. You can trade just USD currency, and this USD movement is not random. If you could ‘read’ the main direction of this USD movement (using inter market analysis) , and you trade all the currencies pairs related to USD in USD side, the result could always predictable.. Just remember that all that scheduled ‘news’ is only manipulation tools, not the real fundamental events, so the movement ‘reaction’ after news event could always predictable whatever the news ‘value’ is.. because the ‘reaction’ step is always from normal range to deviation range and back to normal range again (correction movement to balance the fair value or equilibrium ) this is prove that market is not random but of course there always ‘randomness part’ in their movement. Market is ‘an agreement event’ and always start with an auction event. Hope it help and Best Regards MTH
Sincere condolences to you and your family bro. Nice to see you again.
Market is not random, so there is a way to find its characteristic. It is some thing like a repeated pattern, path or cycle.
How can we find the beginning of a cycle ? I am not so sure that it is a peak (top/bottom) …
Thanks in advanceAugust 5, 2015 at 2:22 pm #7568Some french scientists says that a 1mn chart have the same structures that an 1 hour chart. For example can you say when you see a chart thaht this one is 1 mn or 1 h?
I am totally agree with that.
When you see everywhere that a system better work on 1 hour than on 1 mn or 5 mn time frame that means for me that the system is not good. Even, they said that because 1 mn time frame is noisy.
So when you talk about “noise”, a 1 mn chart is not the noise of a 1 h chart. Smaller timeframe are not the noise of biggertimeframe. This just means that you see a trend on bigger timeframe and see nothing on smaller time frame.
If you are able to see a trend on 1 hour chart with some system you must be able to do the same with 1 mn chart.
One noise doesn’t exist, but the summ of all “noises” (how many?) make the trend. that means thats the sum of randomness make the trend.
What trend is, is the question. You dont have one trend, you have many trends at the same time. If B is the price now, you can rely many points from A (past price) to B on the same time frame ( trend is up down at the same time).
Unfortunatly whatever the concept, make it into trading is another story…
my condoleances bro to you and family. welcome back.
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This reply was modified 10 years, 8 months ago by
limprobable. -
This reply was modified 10 years, 8 months ago by
limprobable.
August 5, 2015 at 4:05 pm #7573Some french scientists says that a 1mn chart have the same structures that an 1 hour chart. For example can you say when you see a chart thaht this one is 1 mn or 1 h? I am totally agree with that. When you see everywhere that a system better work on 1 hour than on 1 mn or 5 mn time frame that means for me that the system is not good. Even, they said that because 1 mn time frame is noisy. So when you talk about “noise”, a 1 mn chart is not the noise of a 1 h chart. Smaller timeframe are not the noise of biggertimeframe. This just means that you see a trend on bigger timeframe and see nothing on smaller time frame. If you are able to see a trend on 1 hour chart with some system you must be able to do the same with 1 mn chart. One noise doesn’t exist, but the summ of all “noises” (how many?) make the trend. that means thats the sum of randomness make the trend. What trend is, is the question. You dont have one trend, you have many trends at the same time. If B is the price now, you can rely many points from A (past price) to B on the same time frame ( trend is up down at the same time). Unfortunatly whatever the concept, make it into trading is another story… my condoleances bro to you and family. welcome back.
I can only repeat my previous statement:
There is NO such thing as TREND in a currency pair.
The “TREND” in EURUSD, for example, is the sum vectors of EUR vector (“trend”) and USD vector (“trend”). Very much the same as vector calc in Physics.
Once understanding the above – it’s quite easy to make a profitable trading strategy from that.
G.
August 5, 2015 at 10:06 pm #7574G is right.. However i wanted to say that I working on something and soon (hopefully) I will present it here. As I found months before, market moves can be predicted in future even we can’t see it normally. How? I think i can tell – with Trendlines. However problem is, it’s impossible to do it in naked chart. (Green line represent point where price will change direction)
It works on EVERY TF… Problem is drawdown sometimes. And because I found this topic and his “one pip TP” I should fix that and we can be profitable with it even if we use 1 pip TP and 1 pip SL.
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This reply was modified 10 years, 8 months ago by
George.
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You must be logged in to view attached files.August 5, 2015 at 10:20 pm #7580G is right.. However i wanted to say that I working on something and soon (hopefully) I will present it here. As I found months before, market moves can be predicted in future even we can’t see it normally. How? I think i can tell – with Trendlines. However problem is, it’s impossible to do it in naked chart. (Green line represent point where price will change direction) It works on EVERY TF… Problem is drawdown sometimes. And because I found this topic and his “one pip TP” I should fix that and we can be profitable with it even if we use 1 pip TP and 1 pip SL.
I think you are on the same path as me…
Look at my posted detailed trade results (almost 1 yr. backtest – http://penguintraders.com/forums/topic/nature-of-markets-power-of-probability-compounding-1pip/page/8/#post-7482) and you might find and answer and solve your DD problems…
G.
August 5, 2015 at 10:25 pm #7581G is right.. However i wanted to say that I working on something and soon (hopefully) I will present it here. As I found months before, market moves can be predicted in future even we can’t see it normally. How? I think i can tell – with Trendlines. However problem is, it’s impossible to do it in naked chart. (Green line represent point where price will change direction) It works on EVERY TF… Problem is drawdown sometimes. And because I found this topic and his “one pip TP” I should fix that and we can be profitable with it even if we use 1 pip TP and 1 pip SL.
Newton’s Third Law?
August 5, 2015 at 10:43 pm #7582G is right.. However i wanted to say that I working on something and soon (hopefully) I will present it here. As I found months before, market moves can be predicted in future even we can’t see it normally. How? I think i can tell – with Trendlines. However problem is, it’s impossible to do it in naked chart. (Green line represent point where price will change direction) It works on EVERY TF… Problem is drawdown sometimes. And because I found this topic and his “one pip TP” I should fix that and we can be profitable with it even if we use 1 pip TP and 1 pip SL.
Newton’s Third Law?
G is right.. However i wanted to say that I working on something and soon (hopefully) I will present it here. As I found months before, market moves can be predicted in future even we can’t see it normally. How? I think i can tell – with Trendlines. However problem is, it’s impossible to do it in naked chart. (Green line represent point where price will change direction) It works on EVERY TF… Problem is drawdown sometimes. And because I found this topic and his “one pip TP” I should fix that and we can be profitable with it even if we use 1 pip TP and 1 pip SL.
Newton’s Third Law?
Yes, but more like an Euclidean vectors, with one exception:
When the vectors “collide” (or “meet”) the math is the same for direction and force, but the resulting vector start behaving like fluid, with distinct direction and turbulances at the “river bank” edges.
I think that Harold Edwin Hurst (British hydrologist) was the first one to notice and research that behaviour – resulting in Hurst Exponent – that was later used in finance.
Later on in history, you can find many great traders and guru’s refering to the market as “water”, “river”, “flow”, etc.
Direction and Angle are easy… for Magnitude you can use Volume, Momentum, etc..
Forex = very wet environment… ;-}
G.
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This reply was modified 10 years, 8 months ago by
gg53.
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You must be logged in to view attached files.August 5, 2015 at 10:54 pm #7583Yes, maybe.. I don’t know how to call it. But it works. Multiple ways how to use it.. Just need a bit of help after some months. :)
August 5, 2015 at 10:55 pm #7584Good to have you back Kiads.
My condolences to you and your family.
hannele
August 5, 2015 at 11:21 pm #7585Yes, maybe.. I don’t know how to call it. But it works. Multiple ways how to use it.. Just need a bit of help after some months. :)
You can try my Skype (ggfx_ggfx), if you want…
G.
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