search.noResults

search.searching

note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
FX TRADING STRATEGY


and shifts in liquidity supply and demand.


In previous articles for FX Trader Magazine (Q2 and Q4 2016), strategies were explored that trade inefficient price runs across daily highs and lows. In c on t ra s t , this article will provide a statistical c o n t e x t for the discretionar y trader to use market structure to frame the trade within the previous daily range, with some exa m p les based on price delivery mechanics.


probability of success?


The test strategy is to find nuances in market structure behaviours on the daily


and


weekly timeframes in order to exploit them.


price context.


Note the difference here between price and value. Some traders say they trade ‘value’, not price. The ‘price advantage’ lies in exploiting price i nefficienc y at a point of resilience at the ‘tail-end’ of daily market s t r uct u r e. Value – volume profile or TPO – may well be elsewhere.


What is the Definition of Done?


The structural context becomes a filter which selects only those trades which have a higher probability of being manageable


Test Strategy and Proof of Concept


What if we could find a market behaviour that was not only


independent of our


personal price action trading behaviours, but also allowed us to time to position our preferred trades with a higher


48 FX TRADER MAGAZINE October - December 2017


For example, one way to exploit structural behaviour is


to trade price inefficiency


meeting price resilience around market structure breaking points, using areas of volume or liquidity (this is shown later). The structural context becomes a filter which selects only those trades which have a higher probability of being manageable due to the


On completion of the analysis, stats


are


available which show clear delineation of


market structure behaviour on a daily and weekly timeframe. We can then use this information as a filter, or context, to refine our preferred trading setups. Context plus pattern equals setup.


Test Results There


are a number of structural behaviours on the


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70