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Market Manipulation - Big Banks

 
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lukemaney

Market Manipulation - Big Banks

I'd like to share a little gem that I've found. I've been listening to this youtube channel for a while and the info on here will help you guys and gals.

Please take notes

This video is on the Biggest Banks manipulating Forex market price.

https://www.youtube.com/watch?v=Lvq0t0eQOG4

I highly recommend watching EVERY video on this youtube channel.

GORGE YOURSELF!

Comment on what you have learned from this.

Have an awesome day!

Thu, 11/29/2018 - 8:59pm
 
george_4

I found this, it is two years old...

Top 10 currency traders [62]
% of overall volume, May 2016
Rank Name Market share
1 United States Citi 12.9 %
2 United States JP Morgan 8.8%
3 Switzerland UBS 8.8%
4 Germany Deutsche Bank 7.9%
5 United States Bank of America Merrill Lynch 6.4%
6 United Kingdom Barclays 5.7%
7 United States Goldman Sachs 4.7%
8 United Kingdom HSBC 4.6%
9 United Kingdom XTX Markets 3.9%
10 United States Morgan Stanley 3.2%

 
MISTER PIP'S

Hello, I must say this info is quite interesting, although fresh data is preferred, as it has the most use. In terms of FX, there are a lot of Geo-Political situations under the sign of "Acts of War", which have a lot to do with the VIX, wouldn't you agree?

 
burton

mister pip, if you are wanting something fresher...study the "imf" and the "central banks". let google be your guide.

 
burton

lukemaney, thank you for sharing this vid.

 
lukemaney

Thank you george_4, burton. MisterPip, I have not heard of VIX or an Acts of War sign.

After 4 years trading Forex, I can say that what has not worked for me is:

Fundamental analysis
Trading The News
Support and Resistance
Fibonacci
Trend Lines
Moving Averages
RSI
MACD
SuperTrend
Stochastics
CCI
Hull MA
Momentum Indicator
Accumulation/Distribution
Fractals
Ichimoku Hinko Hyo
Renko Bars
Heikin Aski Candles

What has been working is:

Looking at which pairs have the highest difference of retail trading going long vs short.
That is if 67% of retail traders are short on USD/CHF and 32% are long, I will look to trade long and locate where the Banks have STOP HUNTED both long and short traders. Then I'll pick a price level that I think the Banks will not want to return to, where they have already performed a stop hunt procedure, I'll place my stop on the other side of that.

 
lukemaney

After watching The Banks video, here are two more that you guys should watch.

The Dirty Dozen
https://www.youtube.com/watch?v=3c6o4O8goAo&t=312s

Fundamental Analysis
https://www.youtube.com/watch?v=X1CwjQ7wqy4&t=57s

Fibonacci Video
https://www.youtube.com/watch?v=cBSod8lWMP8&t=3s

The guy that puts these videos together is sharp, funny well worth listening too and testing what he teaches. ;)

 
n1jrm

If you want to know about the big banks watch this
https://www.youtube.com/watch?v=Lvq0t0eQOG4&index=3&list=PLPqWQo6-TXfHyC...
then you will understand why we get screwed so often

 
lukemaney

Thanks n1jrm

 
Dean053

Luke, how do you know where retailers are long and short? Is there an indicator for that?

 
TurtleDove.2K

Thanks Luke, I will definitely check out some of these videos. Do you know if the banks use computer generated trades?

 
gapfiller

Cool stuff. Thank you. I always wondered how they do it.

Have not watched the videos yet but I cant imagine that SMAs are not useful for you. In my opinion it is a (if not THE) very powerful tool to get a visualization of the trend, which is your friend, right? ;)
And any other tool is kind of a derivation from the SMA.

I think with Algo-trading becoming (if not already) in the near future of a banks repertoire when trading. SMAs should play a more vital role, which one can (ab)use.

 
Specularix

re: Looking at which pairs have the highest difference of retail trading going long vs short.

thanks Luke,

yes, that got my notice recently as well, when searching, I found an indicator that is monitoring this retail/big money ratio using

data feed from a mixture of various brokers; it's running on cTrader, a platform of Aussie broker ICMarkets; only trouble: it's an add-on

and costs $499; need some paychecks!

 
Rookie

@Specularix, what tool is that?

 
tsphillis

Luke,
I'd like to bump the thread by re-asking Dean's question: where are you getting your info? The only thing I can imagine would be a commitment of traders report from a well connected source. Forex is a decentralized market, so it would need to be a bank or other institution that serves a lot of them, or at least the big ones.

Thanks!
Tyler

 
tsphillis

OK, I think I know what Luke is talking about: IG Client Sentiment. I investigated this some time ago and dropped it due to some other distractions. It is recommended by the publisher of the videos he recommended in this thread. If anyone else has any details or uses this I'm curious about where you are getting your information.

As a warning regarding the No Nonsense Forex YouTube videos: his video about fundamental analysis is a big straw-man argument. What he describes as fundamental analysis is not what it is. Fundamental currency analysis involves two distinct phases: first is the endogenous analysis, which is the evaluation and objective scoring of economic data to determine how productive the people are who use a particular currency, and how responsible the authorities are who control its supply. Endogenous analysis is done in absolution, meaning external influences like import/export trade, etc., are not considered. Second, an exogenous comparison between two currencies, including any influences caused by international markets, import/export, etc. The end goal is to establish a predisposition, or bias, regarding the intermediate and long term direction of currency exchange rates, equities and bond values, etc. Look up Global Macro Economic Theory. The principle founder was John Maynard Keynes.

The guy at No Nonsense Forex is right about it being a daunting, tedious and boring task; that's why hedge funds and large bank prop funds have research departments dedicated to this kind of analysis. They are often way ahead of the curve on major economic trends. I know something about the process, but I do not do the analysis due to being a one man show. For those of us scalping for 10, 20 or 50 pips per trade its not necessary. If you're shooting for more than a few hundred pips per trade you would be better off
if you at least familiarized yourself with the process so you can know what the big boys are looking at, and how they react to what they're seeing. I disagree with some of the conclusions they draw about fiscal policy, but it doesn't matter whether or not I agree...they conduct the research and they make money with it.

I have a short-cut, but I'm looking to verify that it indeed is a valid short-cut. I think a commitment of traders report might do that, but is probably not available...at least, not in a form you would find in stock or futures trading. I know that a complete fundamental analysis of all 8 currencies would provide that verification, but the task without some kind of software support is impossible for one person. This thingy Luke is talking about sounds intriguing...

 
Dean053

I watched most of his videos and then gave up on it. He doesn't reveal how much he actually makes and I doubt it's anything like the guys at Apiary make. He obviously gave up too soon on indicators and support/resistance etc and so he's convinced himself they don't work, but we see every time they live trade here on the Apiary Fund that they do work. On one video he mentions how it's impressive that he is still a funded trader; that doesn't exactly inspire confidence. I'm sure if one goes through and backtests a million different indicators and uses his six point "algorithm" that it would provide good entries, but I also doubt it's the most efficient way of learning how to trade.

 
amllagroup

I have to credit Raghee Horner for sharing this website:

https://finviz.com/forex_performance.ashx?v=2

I also credit BK Forex for facillitating the webinar but I now use this cheap & quick visual as an additional filter for all my trades.

Capture1_8-27-19.PNG