Futures Vs. Forex

[daedalus]

I think this can be a great discussion.

Couple things... i think FX is more conducive to candlestick analysis because there is less manipulation by a pit/pros to headfake traders, etc...

And 2, lets just keep in mind that the same stuff applies on all timeframes but as with anything, if we start drawing down to 1 minute charts we are going to see an increasingly hard picture to decipher. The 1 hour charts are a great way to observe this because they are substantial enough IMHO to prove the failures/success of price action.

[brownsfan019]

Originally Posted by daedalus Couple things... i think FX is more conducive to candlestick analysis because there is less manipulation by a pit/pros to headfake traders, etc...

FX has less manipulation than futures? Seriously?



I've seen it all here now.

[forsearch]

Originally Posted by brownsfan019 FX has less manipulation than futures? Seriously? I've seen it all here now.

You beat me to it!

[daedalus]

Thats your opinion... sorry we don't agree.

I just see A LOT less blatant stop runs and headfakes in the currency markets than I do trading the ES, NQ, and ER2.

Is it still there? Of Course... but I feel its on a lesser level.

[trader273]

Originally Posted by daedalus Thats your opinion... sorry we don't agree. I just see A LOT less blatant stop runs and headfakes in the currency markets than I do trading the ES, NQ, and ER2. Is it still there? Of Course... but I feel its on a lesser level.

Reading a post like this, one can only assume that you are a new trader. If you feel that your stops are getting run, you are simply not seeing market action correctly. I have never seen a post on any forum where a person is suggestion that the CME is delaying their quotes, changing prices after the fact, and not allowing a winning trader to withdraw money.


Anyways... It doesnt matter how you view the bars, be it 1 hour, 5 min, or 10,000 volume. Candle patterns are SECONDARY. The primary system should be a way to define support and resistance levels. There are a million ways to do this, be it, market profile, horizontal sr, pivots, bollinger bands, etc.

It is really easy to look at a chart and say, oh there's a doji at the bottom of a downtrend, I would have gone long. But one doesn't know it was the bottom of the downtrend till well after the trade.

Ive said it million times before, and Ill say it again: Candle Patterns, by themselves, will make you go broke.

[forsearch]

Originally Posted by daedalus Thats your opinion... sorry we don't agree. I just see A LOT less blatant stop runs and headfakes in the currency markets than I do trading the ES, NQ, and ER2. Is it still there? Of Course... but I feel its on a lesser level. Originally Posted by trader273 Reading a post like this, one can only assume that you are a new trader. If you feel that your stops are getting run, you are simply not seeing market action correctly. I have never seen a post on any forum where a person is suggestion that the CME is delaying their quotes, changing prices after the fact, and not allowing a winning trader to withdraw money.

I have to concur. Don't want to take this discussion off-topic though. I'll just wait until Daedalus experiences a 200 pip stop run right after a delayed trade off of a news event in retail spot FOREX. You won't see this happening in the regulated IMM currency futures at the CME, by contrast.

Live and learn.

[daedalus]

Originally Posted by forsearch I have to concur. Don't want to take this discussion off-topic though. I'll just wait until Daedalus experiences a 200 pip stop run right after a delayed trade off of a news event in retail spot FOREX. You won't see this happening in the regulated IMM currency futures at the CME, by contrast. Live and learn.

Been around for years guys... but thanks for your concerns. Maybe its just because i'm not dumb enough to trade in front of news events so I don't experience that "manipulation". But news events aren't exactly manipulation IMHO and anyone stupid enough to get caught in that situation deserves to lose their money.

Its beginning to feel a lot like ET in here...

[trader273]

Originally Posted by daedalus Been around for years guys... but thanks for your concerns. Maybe its just because i'm not dumb enough to trade in front of news events so I don't experience that "manipulation". But news events aren't exactly manipulation IMHO and anyone stupid enough to get caught in that situation deserves to lose their money. Its beginning to feel a lot like ET in here...

It's not just trading in front of news. There are many other ways forex is way more manipulated than futures:

• Giant random spikes to take out stops
• If a trader is too profitable, execution slows down
• Unable to withdraw money if account is up
• Absolutely no regulation
• Trading against the broker, who controls the quotes

I really dont know how you actually believe futures are more manipulated than forex. The CME and your broker are just facilitators of trade, while you are literally trading against the broker in forex, who just happens to control the quotes. That doesn't seem like its on the up and up to me. I have never heard of one trader say that they cant get executed on globex because they are too profitable.

And to think, that there are a group or traders that just go around hunting stops is laughable. Now price might seem that its gets attracted to your stops and then reverses, but it's ludicrous to think the pros/pits traders are out to get you. Its the function of where you are putting your stops. If you put them in obvious areas, well, then how can you say they are stop hunting? Even if they are, there are still many more ways forex is rigged against the retail trader.

[daedalus]

Originally Posted by trader273 It's not just trading in front of news. There are many other ways forex is way more manipulated than futures: Giant random spikes to take out stops If a trader is too profitable, execution slows down Unable to withdraw money if account is up Absolutely no regulation Trading against the broker, who controls the quotes And to think, that there are a group or traders that just go around hunting stops is laughable. Now price might seem that its gets attracted to your stops and then reverses, but it's ludicrous to think the pros/pits traders are out to get you. Its the function of where you are putting your stops. If you put them in obvious areas, well, then how can you say they are stop hunting? Even if they are, there are still many more ways forex is rigged against the retail trader.

Lets go through these and i'll itemize which ones are outright FALSE.

1. Big random spikes, i don't deny they are there. I'll agree with you on this point, but I don't think its ANY worse than Futures.
2. Trader too profitable, etc.... THAT 110% B.S.!!! If your using some craptastic bucket shop broker sure... but its a scam anyway if you are. Use a true ECN broker like MB Trading and THERE IS NONE OF THAT.
3. 110% False if you use a REAL ECN broker.
4. No regulation, i agree, there is less regulation than futures markets without any shadow of a doubt.
5. Trading against the broker... again... USING A REAL ECN avoids this complication all together! A broker like MB Trading makes their money off COMMISSIONS like any other broker. I've attached a screenshot from my broker applet... which shows the REAL TIME liquidity and spread on each pair that changes with market conditions.



Group of traders that go around a hunt stops? The pros/pit isn't out to get me? Really? They certainly aren't my friend in a trade. They will purposely try and screw retail tradrs out of money. Why do you think when a market like the CBOT goes down the pit traders in the CME start pushing the market as far as they can in the opposite direction? Its to f**k all of the traders caught in positions in the opposite direction over at the CBOT.

[brownsfan019]

I don't even remember when the CME went down last....