Financial Trading Product Reports

Forex Secrets – Illusion # 2 – Who calls Forex traders Quote

Illusion concept suggests that traders in a spontaneous Forex Market (as stipulated in B. Williams, Pastor R., E. Nayman, etc.) But is not the case. Traders do their work within a well-organized and controlled the currency exchange market, governed by the Consortium of the world's largest banks.

Therefore, he is pressing the coins up and down, which defines trends, corrective actions and flats?

And who, ultimately, places a tendency to a point where the majority of traders are happy to think they have saddled the wave and are on the verge of winning a huge benefit! Now! Do not be afraid! No to close the position! Do not be content with a profit of minor! Later we will discuss this type of stupidity. Therefore, there is still time to continue despite the benefits more and more degrading. In short, loss begins to grow at speed of light! Are you familiar with the situation?

Well, it has invested the interest rate?

Y usually tugs exchange rates?

Fallen is undoubtedly central. Compare online quotes from several dealers or banks to know they are matching per second. Do you act in each bank traders in synchronism such that not even see each other, ordering the same, so this offer is in line 100%? NOTHING HERE IS A MIRACLE!

But before the explanation, let's listen to Bill Williams, a student of FOREX (Trading Chaos, chap. 6): "… we chart a process of forming tendency. Earlier, the market and the market place of trade was constituting a physical space. Most traders large grains were concentrated in the "floor." His orders amounts at stake, enough to move the market but enjoyed better control on the market today. During the period of 20 years markets have grown worldwide. Now, not only "Ralston Purina," "Kellogg" and other prominent business associations seeking coverage of its assets in cash transactions. The same goes for millions of small speculators and farmers in the world, competing with them in anticipation of fluctuations in the perspective of grain prices? This also implies a strong potential for traders to present trends are not built on the ground. This Finally above all ensure the liquidity of the market through deal with "external commands."

The fact that the trends of today are formed rather "off the word" that "on the ground", as before, allows you to draw a market trend with greater volume of trade is the key. information Our on-line to score only limited volume, time and price. Check the volume is a series of price changes for a certain period of time. It is far from a number negotiated contracts. Several investigations revealed no significant differences between the actual volume and the tick. With a volume of tick, we can suppose that represents volume real. It is a real-time volume, making it our key to what is happening in "trading pits."

Two basic elements are organic to trading FOREX: on the floor brokers and traders at a distance. local actors are the staff, the execution of orders, thus earning their wages and / or commissions. They have no money to be available. They are executing application. Its prospects are not overwhelmed by the prices they receive in return for order management.

remote traders use their own money. They have to pay the price out of pocket, unless they are getting good. Operators have to be far superior in skill runners, and that independently make their own decisions, while the work of the corridor is to follow the orders of others.

remote merchants supposed to support the market by having its opposite side. As a rule, are not at all crazy about long-term transactions. Quite a few have remote traders been participants in our private training programs, and recognize that a transaction of over 10 minutes can seem quite a long time for some of them.

Think about the trends that are built to order, delivered to the plant from the outside, but not long-term positions by traders signed distance. Given economic agents job is to take the opposite side of orders coming from outside, have no prospects for trade in their mutual relations. They keep their money. We are emphasizing once again, that the volume of tick your key to understanding what is happening in the Forex Market. traders do not contribute a significant volume distance of the negotiation, that might result from dealing with similar traders on the floor. Trends emerging from the order books. So we must be sure about when and how much external order is available on the ground. Is presented through a volume change of ticks. "

Therefore, we the traders, appear to be the Price locomotives, right? And the brokers on the floor just assign and execute entry order from us, not that? And in April, 1, 2005 all of them (ie: all) together decided to turn the trend and short stay against all rules, news and common sense … I wonder if the scholarly embarrassment or no?

As soon as the above quotation, which has offered to hear a single argument in favor of Bill Williams (I think it means what I mentioned in detail): it is all about the futures markets; have read or use the above mentioned in the currency. Strangely enough, these are the arguments of the defenders of Williams, but Williams himself.

This book is actually intended for both: the futures markets and the forex market. That's why the images taken of both the markets are so mixed and the author never difference between the methods of technical analysis of it. Therefore, either the author does not draw a distinction between the two markets, or not willing to reveal to the reader.

And not in the prologue, or the comments made Williams and the editors refer to the fact that some "Trading Chaos" does not apply to FOREX, and therefore should not be using a Forex trader.

I have repeatedly come across this peculiarity of Williams (correctly specific definition of the case method is extended to a larger scale of the coordinates) and actually prompted me to write this book. In each and all, methods and advice, absolutely true and correct to part of the forex market are claimed by Williams to be universal for all Forex Market without being shown when the former is effective and where it is not.

It the same is being done by opponents and supporters of Williams, who see the portion of the currency in which its methods are operable only. As different analysts and Williams bibliographers, traders require a lot harder to carry out a demarcation pro-Williams of trade to one side and the fight against Williams trade to the other.

Obviously there comes a question: what could be added to Williams indicators for effective turning point they are ineffective at present (see details in the chapter on the crocodile Williams).

And now we are returning to the question of who supplies dealers Forex Rates of contribution, given that it is we, the merchants who carry the flow rates in accordance with the terms of Williams. Millions traders have been studying FOREX under the "Trade House" and is really worth studying. This is one of the most interesting and educational issues as repeated reading each time it brings something new and useful.

However, in some passages smells being created to measure. Williams is ignorant of the fact that no single Forex Exchange and not a single trading venue or on the floor? And the Pacific, Asia, Europe and the Americas qualifying is arbitrary?

Have you seen the types of movement, while there is a day off in the U.S. with the banks closed? So did I. So who has taken a decision in the U.S. to trade on the floor in a day of rest?

So who asks rates, which makes the trends and makes no objective reason exchange rate for the rotary and running in one direction, not necessary at all?

Here's the answer, as supplied by No. 11 of 2002 "FOREX speculator magazine article Nadezhda Larina "Electronic Broker System in" foreign exchange market, http://www.ifin.ru/publications/read/351.stm) text: "… a front FOREX" Electronic Broking Service (EBS) "is very popular with the extra FOREX interbank exchange market. It has been developed by the Consortium of major commercial banks participating in partnership with FOREX "Quotron" computer expert company and launched in 1993. Currently includes 13 EBS world's largest market-maker banks, namely: BN AMRO Bank, Bank of America, Barclays Capital, Citibank, Commerzbank, Credit Suisse First Boston, HSBC Bank PLC, JP Morgan Chase and Co.Lehman Brothers, Royal Bank of Scotland, SE Banken, UBS AG, along with Japan Minex Corp., created by a consortium of Japanese banks in conjunction with the Japanese telecommunications company and Dow Jones Telerate KDD.

EBS offers a fully integrated range of services to address the professional market interbank being a major anonymous interbank FOREX trading electronic distributor. It is currently used by more than 2,500 dealers in 850 world banks and yields a trade volume of approximately USD80 million per day.

See also: "the oldest of three distributors FOREX – Citibank, JP Morgan Chase and Deutsche Bank, together with Reuters Group PLC) Atriax system have begun in June, 2001.The latter operation is completed in the spring of 2002 after failing to support competition.

Can you imagine a monster machine, able to bind three of the world's largest banks – Citibank, JP Morgan Chase and Deutsche Bank to abandon their business plans! Or able to reverse the EURUSD from 1.3660 to 1.1865 and thus instantly execution of merchants around the world, go and cut your feet! And so, within, from April to June 2005, buying euros traders to USD1.36, 1.29, 1.20, 1.19, etc.

Do you see the loss? Observe the leaf Euro 1700, having bought it at 1.36 pts … But perhaps there is no loss at all?

All provisions of Larina confirmation have been found two years later in the UK "Financial Times" article by Jennifer Hughes: "A computer trading floor occupancy "(See this in Financial Times 2004).

It is emphasized that during the preceding two years the turnover has grown by an additional Consortia $ 20 million daily as now extends to U.S. $ 100 million, while the major trading platforms via the Internet to ensure the average of USD15, 20 billion volume daily business.

Therefore, we are going to some conclusions:

1. The Forex market is different than it used to be before, say 11 years ago.

2. In fact, there is "a relatively uniform price fluctuation," otherwise, the similarity in other studies with runners from all over the world traders.

3. The reason for the uniformity above has been disclosed from technological point of view honestly, being the "flowering of electronic exchange technologies. "

4. There is no mention of other causes of similar taxes in quite different FOREX trading platforms everyone joining above the platform and FOREX rates them from economic, organizational, contractual views, etc.).

5. The great interest is the observation of "Financial Times" reiterating FOREX changes in recent years as narrated by an anonymous ex-dealer (?) comparing the currency market as 11 years ago: "It used to be a noisy hell and hell splendid!"

In his opinion the market has lost an important part of their individuality with the rise of technology. A very interesting phrase: "I used to be hell" splendid. I would add: "Before to be hell "volatile, with reference to the fact that the trip rates daily went to the extent of 400-500 pips. And there is nothing about that now.

6. Now, why "The Financial Times interviewed the only official EBS Consortium?

Jeffrey J. and the head of department of transactions monetary, Fabian Shey Why was it not willing to interview representatives of Reuters (UK)? What is the reason for this kind of disrespect their compatriots?

Or was it hard to be contacted in London, where The Financial Times and Reuters are the headquarters, on the other hand after holding that now therefore Consortium EBS and Reuters are dominant in the interbank market? O The Financial Times has enough information to Reuters compatriots to maintain that EBS Consortium official interview is sufficient without any Reuters?

7. Please pay attention to the following in The Financial Times: "Of all However, the views are available. According to Justin Trenner, the current volume of online trading turnover is U.S. $ 100 billion is equivalent to the strong daily growth observed. "The Financial Times which is to recognize his complete inability to track not only cash flows FOREX, but also of trade volumes on those platforms.

The main difference between stocks and FOREX, of course, evident from the above. These, in writing about similar Fundamental Methods technical analysis for both the market or are ignorant of fundamental difference of these markets, or are deliberately ripping off millions of merchants.

Noting that, in addition to the above Consortium Banks, other electronic means that address (eg Electronic Service Broker, Reuters Dealing 2000-2, etc), N. Larina has overlooked interrelationships appearance. And there are plenty of questions: how and why there is a coincidence of trends, corrections, maximum historical and lows in the course of a day, etc.

And what is the way to reconcile the statement of derivation of EBS and Reuters Dealing with information facilities that Citibank, JP Morgan Chase and Deutsche Bank, together with Reuters Group Plc have been unable to withstand the competition? Is it attributable to the fact that the Consortium has actually acquired Reuters, the maintenance of formal sovereignty in order for the merchants' view that the FOREX market is free and independent? If so, then it's pretty clear why the Consortium was not afraid to buy euros in its dip from 1.36 to 1.1860, because there is nothing to be afraid own knowledge of the tip, below which the rate will not be lowered, and point to the euro rally stage for several months with no one to interfere with his doing so.

Hopefully, now it is understandable that swivels trends in FOREX! world's largest banks Consortium has the power to reverse the charges, wherever Concerned, the overthrow of the fundamental laws, press releases, trends and common sense, as we have witnessed 01.04.2005 graphics. But it is not absolute, the merchants, as Williams says.

That's why there is obvious inefficiency of the market index Facilitation Williams (MFI), based on fluctuations in trading volumes, to be precise, sometimes the indicator tells the truth, while sometimes found in a blatant form.

The reasons expressed above: pushes banks consortium fees where necessary, but not for traders to enter bids, thus accumulating volumes, indicated on the screen. That's why traders turn losers to make use of the indicator MFI Williams.

Full text of this article and photos of examples http://www.masterforex-v.su/

About the Author

Vyacheslav Vasilevich (Masterforex-V)

Professional Trader from 2000 year.

President of Masterforex-V Trading Academy.

Author of Books:

1. Trade secrets by a professional trader or what B. Williams, A. Elder and J. Schwager not told about Forex to traders.

2. Technical analyses in Trading System MasterForex-V.

3. Entry and Exit Points at Forex Market

Books web site http://www.masterforex-v.su/

EASYMAG from US Cavalry

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