MP and Currencies

[momentom]

Anyone successfully using MP with currencies?

How do you organize your profiles? 24 hour or just the time zone you trade. Currency day is really three days so how do you look at it? What is the real VA and POC?

[notouch]

I use European hours only. The overwhelming majority of currency trading takes place in London so when looking at value it makes sense to look at it from the perspective of London traders.

[torero]

I've been reading up on Dalton's book and I myself had the same question. It seems a logical choice to use London session as a starting point. But we can't ignore the other volume areas that may play a crucial role. In simple S/R, Tokyo and NY highs and lows play an important part of the price action movements so I think it's tricky using MP with currencies. I think Dalton used bonds are the main instrument as an example but he did use currencies and used the entire session (24-hr format). I'm testing out a few ideas right now so we'll see how it goes.

Notouch, you see any edge in using MP for London session only?

[notouch]

Yes because the London value area often comes into play in the following London session. For example if price gaps higher it may test the previous day's VAH. I tried it on a 24 hour time frame and found it quite useless because price during the Asian session in particular just trades in a narrow range with very little volume giving the impression that value is being created in that price area but in reality it's just because so few trades are taking place. Even where there is a trend in the Asian session causing a gap this gap will usually be partially or totally filled.

[nickm001]

just wondering if you have tried using VOLUME based MP... TPOs dont work because it gives the same weight to low volume session ( like asian) based on time@price as it does to EU or US session.
Note: I am not trading currencies, but was helping another trader doing research/testing

[notouch]

The problem is there is no volume in forex apart from the futures which is mostly traded in the US session.

[nickm001]

my bad... thought you guys are talking futures..

[torero]

I think you can use tick chart as a substitute for volume for forex no?

[notouch]

I've never seen that incorporated into MP and tick data is not a very reliable indicator of volume.

[nickm001]

torero, as far as I know, there is not central clearing house for forex, no common quote system. One is trading via broker, which provides, sw, quotes and liquidity for traders that participate with them. Setup is similar with "bucket shops" from the days of old ( Jesse Livermore). The only volume you could possibly see is the local shop volume. The system is setup as inter-banking system, and forex traders are small, very small fraction of the volume.