Quote:
Originally Posted by aegis
There is often no rhyme or reason why a certain currency pair rises and falls. This market changes its pace very quickly and it's difficult to turn a profit on a consistent basis.
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There is always reason. That is 100% a fact. The "rhyme" is completely up to you.
The one thing thing to keep in mind is that the Fx market is like a coiling snake. It takes some time to coil itself, writhering back and forth in doing so, but eventually, and often catching the unweary off guard, it will spring out and attack.
Much of the day to day movement is market noise generated by trader sentiment. When you consider the depth of the Fx market, the movements are fairly tame considering the amount they could really move.
Many stocks can lose or gain 2-4% a week...in comparison, currency pairs move fractionaly within weeks. The last two weeks have been just a small correction for many of the pairs, which is inevitable; but still fractional when compared to corrections in other markets.
Ragingbulls method may be profittable for him as he's adapted himself to seeing the market in that way....that doesn't mean it would be profittable for anyone else unless you're sharing the same brain.
If I trade with only two MA's and how price acts around them, how vague is that?! Pretty damn so. But it's the way I've developed my mind to see the market and for me, it is profittable.
Sharing methods is sometimes dangerous as those with no method often try to leach the method in it's entirety and when they fail, they hold resentiment against the author as some type of fraud. When in reality, it's their own lack of market understanding that is the root of the failure.
Like I've said 1000 times,
it's the trader not the system that generates the profits. If you rely on a strict system without discretion based firmly in market understanding, you will eventually fail.
I would encourage you to break away from subscribing to paradigms like the one you stated in the previous post and convince yourself the complete opposite. Perception is reality.