How do the Chinese trade?
Hi,
So I don't know where this thought came from, it just sort of popped into my head while sitting here waiting for the moves which seem to occur rather erratically at the moment. but is struck me as something I should find out. I have heard that ichimoku is particularly effective on JPY pairs because it is a form of analysis that is more popular in Japan. As China continues to grow as a presence in the global business surely it stands to reason that Chinese trading activities will grow and will have an increasing effect on price movements in the FX markets. Therefore doesn't it make sense to find out the preferred analysis methods of Chinese retail traders? I have no answers here, just wondering if anyone did.
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Comment by pixta on August 23, 2012 at 11:46am -
Everything from financial comes thru Hong Kong mainly to other China i guess they trade the same as others in London, FFT, NY, Geneva and so on.
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Comment by Indy on August 23, 2012 at 2:49pm
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Hi Pixta,
Thanks for the input, I also had thought about the Hong Kong factor, that would definately be a factor in favour of western analysis being predominant. I guess it is just that I realised that I didn't really know anything about how the chinese approach technical analysis and an awareness that other cultures do not neccesarily approach these things in the same way, the prime example being the japanese using various different techniques such as ichimoku or heinken ashi etc. Plus with the potential amount of trading that could come from China in the future, whatever the main analysis methods are could influence a lot of things such as the formation of S/R zones etc and also wether these are static or dynamic.
Hopefully they just use the 200 sma and nothing else, that would keep it simple for everyone.
Cheers
Indy
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Hi Lisa,
as far as i'm aware, heiken ashi means 'average bar' in japanese so I guess I just assumed they originated in japan although I have not read anything about thier origins so they could easily be a western invention. That should say something about assumptions or 'just not thinking about it'.
which i think sums up my knowledge of the Chinese approach to technical analysis. Most people, (including myself) have just not thought about it, or we assume it will be the same, but you know what they say about assumption being the cause of most mistakes. (thats the polite version).
Maybe the whole question is unimportant but I have an inquisitive nature, if I realise there is a gap in my knowledge, I like to find an answer, only then can you make an informed decision on wether something is irrelevant or not. Anyway, theres not much feedback so far so maybe i'll have to stay in the dark on this one.
I trust your trading is continuing well this month. MA crosses filtered with candlestick analysis, a fusion of eastern and western analysis? It seems to work well for you.
Cheers
Indy
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China to expand margin availabilty for trading
http://in.reuters.com/article/2012/08/27/china-maring-idINL3E8JQ0C5...
Maybe that influence could come sooner rather than later
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