Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

momentom

MP and Currencies

Recommended Posts

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?

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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?

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

Hi Nick, I trade forex so I'm aware of the fact there is no volume. The tick is the best substitute, PP himself uses this to best gauge the volume as close as possible. I think it's the really the only chance of getting something out of forex. However, I'm trying incorporate tick charts into my trading but so far, the best is the time charts (15-,60-,240-min and higher charts). I can only assume Anna-Marie and her colleagues don't use volume to trade, am I correct?

Share this post


Link to post
Share on other sites

I would like to apply MP to currency futures (EUR, GBP) which I'm starting to study. I see discussion started on whether the 24hr or a specific time zone is the preferred profile setup. I chose to start with the 24hr format but segment the profile to reflect my time zone (PDT start of RTH with capital 'A' period). Asian and London has already completed and are lower case. This setup "isolates" my time frame part of the profile. This is just a start of my observation but it appears 24hr POCs get respect. Has anyone else continued to study MP and currencies?

Share this post


Link to post
Share on other sites

You could look into Ensign, as they have price histogram....

 

They use price over time instead of volume, which is still a very good indication of AMT.

 

Works for forex too....as it doesn't rely on volume.

Share this post


Link to post
Share on other sites

Thanks Reaver for your input. I'm using an MP EasyLanguage "plug-in" to my MultiCharts software. Early on in this thread there was discussion on what was best to use as a base timeframe. I think it drilled down to London or 24Hr. I think MP with Currencies (Forex or Futures) is an interesting discussion which could be expanded.

Share this post


Link to post
Share on other sites
Thanks Reaver for your input. I'm using an MP EasyLanguage "plug-in" to my MultiCharts software. Early on in this thread there was discussion on what was best to use as a base timeframe. I think it drilled down to London or 24Hr. I think MP with Currencies (Forex or Futures) is an interesting discussion which could be expanded.

 

No problem. Good luck.

Share this post


Link to post
Share on other sites

I love using MP for futures and I'm interested in incorporating it into Forex trading. I think I will use the London open to US equity market close for my profile...2am EST to 4pm EST. Its a rare occasion that the Asian market time frame offers anything significant.

 

I use MetaTrader4 for my Forex charting and there are a few MP indicators out there, but none of them are desirable since they don't have Value Area or IB data, so I've been charting it manually for the time being on Excel which is a chore to say the least.

Share this post


Link to post
Share on other sites

My software squawks about being more than 24 hrs when I try to set London open through US close. I also have a spreadsheet so I may set it up there for comparison. Since I only look at the Euro and Pound futures, London close (as mentioned early on in the thread) might be a setup too because of the London/Euro/US overlap. BTW, there was a nice pullback trade off the 24Hr VAH in the EUR today.:)

Share this post


Link to post
Share on other sites

btrader2, do you calculate the VAH and VAL using 24 hour info or your customized period? I know there is a site out there that calculates VAL, POC and VAH when you plug in the data, but I'd prefer to have Excel do that for me, especially since I watch 10 currencies and don't feel like plugging in numbers for the rest of my life! The problem is that I can't figure out the calculations on Excel...not even sure its possible...but if it is, can someone here let me know how?

Share this post


Link to post
Share on other sites

Hi bronxterp,

 

For currency futures I have my symbols set to GLOBEX for FX futures which is 17:00 to 16:00 Central. The calculations for VAH, VAL, and POC is done by the MP software I have for the MultiCharts charting package I use. You may want to look at a charting package that has MP included since you are looking at 10 currencies daily for MP analysis.

Share this post


Link to post
Share on other sites
btrader2, do you calculate the VAH and VAL using 24 hour info or your customized period? I know there is a site out there that calculates VAL, POC and VAH when you plug in the data, but I'd prefer to have Excel do that for me, especially since I watch 10 currencies and don't feel like plugging in numbers for the rest of my life! The problem is that I can't figure out the calculations on Excel...not even sure its possible...but if it is, can someone here let me know how?

 

Hi bronxterp,

I suggest you'll have a look there:

http://www.traderslaboratory.com/forums/6/mp-on-excel-1306-8.html

the spreadhseet might be useful to you.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.