Crazy Price Action This Session...


Wow! Price action has been crazy this session so far. That tells me the market may be illiquid until the rate announcement from the U.S. Wednesday morning and GBP MPC minutes are released later this session.

Comments

Post a Comment

Popular posts from this blog

RSI(14): The Way to Success...

Image
In earlier posts I've shown a strategy of using the RSI(14) as a trigger to enter trades when it reaches extremes of 30/70. What I didn't realize until reading an old article by J. Welles Wilder, the creator of the RSI indicator, was that it was developed by him as a divergence indication of price and strength of RSI signal. I have been trading this signal with 5-min charts on EUR/JPY and GBP/JPY and it has been incredible. The idea is that you have to combine the divergent RSI with another solid support or resistance level such as monthly/weekly/daily high/low, daily pivot, S/R pivots, round number or fib level. Here are a couple of examples:
Read more

Cable to the Rescue...

Image
During an incredibly slow Asian session I was fortunate enough to find this little nugget. A nice short entry off a lower high at the weekly high. Inside bar on the 5m chart was my signal. Price sat there not moving for nearly three minutes then dropped very quickly.
Read more

Hedge Fund Currency Trader Tips For Finding Trades

Tips from Art K. Hedge fund currency trader trader gives some tips on how he goes about finding high value / lower risk trades. (circa 2008)  Here are some ideas from Art K. as to how to go about preparing to find a good, high probability entry. He's a serious hedge fund pro.: One of my regular (technical) port of calls is to the Dollar Index to see what that’s up to. It’ll offer a snapshot of $ weakness v/s strength. You might then choose to cherry pick your candidate of choice if it's playing ball & quickly then proceed to leaf through the appropriate pairs to adjudge a likely opportunity. For instance, if the buck is weak v/s the basket, I’d want to be homing in on the candidate which is displaying the dominant & aggressive behavior patterns.  If it’s the Pound, then I’ll trail through the cross instruments associated with the Pound to locate whether it’s also a Pound story (of strength) or exclusive to the buck. I’m always on the hunt for value v/s ...
Read more