The Principle of 'Drifting'

[fxscalper90]

For expert and long term traders:

Check this out...

Starting with forex moves based on big news stories such as International Trade numbers or NFP #s where the market may have a decisive, definitive move (well, perhaps only to later retrace but that's not the point).

Second is the situation where a 'trend' may set in moving the market 300, 400 or more points based on specific numbers or macro economic/political situations most traders are making trades on.

OK, along that line is the next theory... a Drifting market.

How powerful is this phenomena?

Can it / should it be figured into a profitable trading system?

This is where the market (or a pair, or a single currency) just drifts (for) no apparent reason, yet sustains moves in excess of 300 to 400 points. In more extreme cases maybe even 500 to 600 points.

In fact, the Drifting Principle may account for some decent profits being made even within the 1 cent range on individual pairs.

I'm beginning to like the DP so much I'm thinking of building a complete trading structure based on it.

Any thoughts on the specter of drifting?

fx

[fxscalper90]

Ghost moves.

Another name for drifting either in the market, a pair or a single currency.

Do 'ghost moves' exist?

Can ghost moves be profitable?

You can't see them in the light of indicators, but they may have enough influence and impact to consider in the forex trading environment.

fxs

[Trevman]

a picture of a 'drifting' market may help, for the minute i'm just seeing a trending market or a neutral market (little up/down movement), i can't help but think a drifitng market IS a trending market.

[Trevman]

ghost moves?.... ok start posting pics of these so we can see what your talking about, i'm fairly sure your just making things up

[fxscalper90]

Originally Posted by Trevman

a picture of a 'drifting' market may help, for the minute i'm just seeing a trending market or a neutral market (little up/down movement), i can't help but think a drifitng market IS a trending market.

"I can't help but think a drifitng market IS a trending market."

EXACTLY! But this is the main distinction.

To Drift is one thing. To 'Trend' is something entirely different.

Perhaps it is the equation that may make more sense if realized. That there IS something beyond 'trending,' a 'trend' or a definitive move based on a specific instance(s).

Ghost moves.



fx

[fxscalper90]

Originally Posted by Trevman

ghost moves?.... ok start posting pics of these so we can see what your talking about, i'm fairly sure your just making things up

Trevman, that's exactly the thing, no pictures can be taken of a ghost move!

They are invisible. You either believe in them... or you don't.

But, if they exist, you may be able to profit from them.

The concept is quite breathtaking. Or horrifying, if they are the reason for your losing X-amount of money in a trade(s). In which case they could also be called "demon moves."

A ghost move or 'demon move' can last 15 minutes, or 4 hours, or 4 hours then break then continue another 4 hours and so on, moving a currency, a pair, or the market 10s of points or 100s of points - all depends on the strength(s) of the 'drift,' the 'ghost' or 'demon.'

fx

[ERA]

fx 90,

Send me some of that stuff you have been smoking?

If these 'drifting moves' are 'invisable' how can you trade them, you can't trade something you can't see. Sounds like these so called 'drift moves' are nothing move than trending markets that have no clear explanation for doing so, which would be the majority of the time.

Anyway I look forward to the unvailing of your 'complete trading structure' with anticipation.

good luck

[fxscalper90]

OK, my live acct, just happened today, EUR/USD long trade.

This is what I'd refer to as a 'ghost move' or 'market drift'.

Maybe there are traders who can give input on this using other indicators that would have predicted it and so forth, but, to me, nothing would explain this particular upward draft except a ghost move.

Explanation of chart:

I bought EUR/USD, price drifted upward, I closed the position at a profit / opened another long, price drifted upward, I closed the position at a profit / opened another long, and so on, resulting in 4 continuous open/close/re-enter trades for a total of 62 points solid profit, no losses.

Again, not bragging, just pointing out a live example of the profitability of trapping a ghost move trade.

The two snapshots are the same two charts same move: one on a 30-minute chart, one on a 1-minute chart.

The white ghostly-looking blob-circles are the ghost moves. Red arrows point to the trade closures/profit-taking and re-entries; In the 1-minute chart you can see the same maneuver done above 1.3417.

fx