Saturday, June 17, 2006

A Volatile week comes to a close

Very little trading done this week. Those of you following the markets this week will have noticed the charts varying wildly from one moment to the next. Each day seemed to bring ever more random and extreme variations in the currency pairs. Of course this was due to the multitude of news releases issued during the course of the week. As I have mentioned before, I don’t usually trade the news. I normally sit and wait out any volatility during the newsbreak until the markets are again giving me some clear indication of direction. But, this week the markets never seemed to settle. The result this week was that I didn’t trade a single day with the exception of Friday, when I traded a brief eur/usd bounce See pics below.

There are people who do nothing but trade the news. If you are so inclined there is a course called MMTS forex trading system, which can help with timing trades during news releases. They have two main systems, one is the "London open system". They claim it is useable on any currency pair. As the name suggests it uses the news releases on the London session in conjuntion with mathematics to work out entry and exit strategies.

Lets hope the coming week brings some clarity and stability.

Here's the eur/usd trade.
Noticed a possible support forming at our yellow line, seeing a bullish candle forming, I entered a buy order. (notice how the slippage puts my order much higher than normal) I enter an automatic take profit at the blue line above, which I guess is the next point of resistance.
I get admittedly a little lucky and our trade touches our closeout price. But, I'll take it!

Want to learn more about pivot points? Check out

This is without doubt the best course available at the moment on trading Pivot Points

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  • 2 Comments:

    At 12:31 PM, Blogger Money Maker said...

    Peter's course is popular and I guess doesn't uses the common indicators the market uses. However its really very costly I feel..and its not clear whether the ROI is great..What do you think?

    Thanks,
    -Rahul
    http://the-forex-trading.blogspot.com

     
    At 12:38 PM, Blogger The Cashmaster said...

    Return on investment is totally down to the individual trader. Using Pivots taught in Peters system helps - But it also depends how you use the techniques and what you use for re-inforcing the decision.

     

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