How do you trade on a day like this? (BB and the drug addicts!)

Beginner Questions
1

Hi everyone!

I was wondering what you people do on a day like this?
I mean, I think all of us are waiting for the great man to talk tonight and I think it would be quite foolish to take any bet on what will happen? I mean whatever happends, I think the USD will move strongly in one direction or an other, and that this is a 50%-50% gamble game to trade on this. Our dear BB will let know all the equity traders and QE addicts tonights if they still can get free shots for the coming years… And it could end up very badly if not!

Do you have any view on what will happen and trade on it? Or do you trade pairs not involving the USD?

Personnaly I am just short EUR/GBP given the current level which is a strong resistance, but otherwise market seem very calm today!

2

OK I tell you what I am doing

[B]First part of the day[/B]

Small scalps (20 pips here and there) because the day is calm ahead of a possible storm

[B]Second part of the day[/B]

I build a position depending on my analysis. I am first looking at currencies and second at currency pairs. I search for patterns that I can validate into my global system. I mean patterns such as Elliott, Tom Demark, Wyckoff or Harmonic (a pin bar, a hammer , etc … are additional signs not the main thing). My position is made with multiple orders (active and pending). If I have nothing with high probability, I will just trade the post event or “second guess”. I don’t use any SL. My positions will be covered if needed or the price averaged depending on risk exposure.

3

Hi Funtim,

I am not going to second guess anything this week. Not trading as the Bernanke situation is coming to fruition this week and we also have a G-8 Summit occuring this week.

Sharron

4

I just have faith in my analysis, set my stop, and run around the field for a week to 2 months at most.

Oh yeah and in between that I find time to try and give people some realities to people who seem to only see what they want to.

:wink: you know who you are.

5

Just watch his eyes carefully while he speaks. If he winks at the camera during any point, you know what to do, buy USD!

6

Lol are you trying to scare that person? You need to worked on your sarcasm better… Silly.

What if he wink because there is something in his eyes… Maybe falling eye lashes? Lol

7

That’s why you watch for the 2 winks and maybe some tongue too.

8

I’m confused what if he closes his wears sunglasses and gives us the raspberry?

9

Uncle Ben won’t do such a thing especially in a national television
.if he will, eww gross!..I will then just read my news feed so I won’t get any nightmares!

10

What you talkin about Willis?

:18:

11

Any hints of an earlier or larger than expected reduction from Ben would no doubt be harmful to the rally in equities, and likely push the US$ higher, however In my opinion the Fed will not announce a reduction in the pace of purchases at this point, but will state that it will decide going forward based on the health of the economic data as it comes in. If so, I reckon it’s possible that equities resume their uptrend.

There was a large spike in volume today at one stage on the equity markets, this may have been positioning ahead of the FED, the spike in volume didn’t last long before going flat again. Technicals do point to higher prices on the equities and it is very possible that last Fridays low was the actual low of the correction as its built on very large volume buying, but the question is will they sustain the moves and build on them or falter at the last hurdle.

Personally I’m looking higher prices on the equity markets and think that the FED’s comments/plans will play on the positive side.

As a DAX trader, tonight or tomorrow I would like to see the 8110/20 support zone tested and held, this would be the ideal buying zone on a dip and bounce from here for a move to the 8330/40 resistance through to the 8360 resistance level followed by higher prices in coming sessions.

[B]Supports to watch - 8110/20 & 8162/69

Resistance to watch - 8264/74 & 8330/40[/B]

The black arrow on the chart represents the ideal level to buy from on a test and bounce (8110/20) for a push to 8330/40.

However, not so positive comments from the FED will likely see a sharp fall to and through 8110/20 for a test of Fridays low…

My technical bias is UP and my fundamental bias is also UP. I will await the correct levels to be tested and held/bounce before entering a position should the situation occur.

Germany 30 (DFB).jpg700×525 71.3 KB

Catch you tomorrow!

12

[QUOTE=“DarrenPoulterDayTrading;501803”]Any hints of an earlier or larger than expected reduction from Ben would no doubt be harmful to the rally in equities, and likely push the US$ higher, however In my opinion the Fed will not announce a reduction in the pace of purchases at this point, but will state that it will decide going forward based on the health of the economic data as it comes in. If so, I reckon it’s possible that equities resume their uptrend.

There was a large spike in volume today at one stage on the equity markets, this may have been positioning ahead of the FED, the spike in volume didn’t last long before going flat again. Technicals do point to higher prices on the equities and it is very possible that last Fridays low was the actual low of the correction as its built on very large volume buying, but the question is will they sustain the moves and build on them or falter at the last hurdle.

Personally I’m looking higher prices on the equity markets and think that the FED’s comments/plans will play on the positive side.

As a DAX trader, tonight or tomorrow I would like to see the 8110/20 support zone tested and held, this would be the ideal buying zone on a dip and bounce from here for a move to the 8330/40 resistance through to the 8360 resistance level followed by higher prices in coming sessions.

Supports to watch - 8110/20 & 8162/69

Resistance to watch - 8264/74 & 8330/40

The black arrow on the chart represents the ideal level to buy from on a test and bounce (8110/20) for a push to 8330/40.

However, not so positive comments from the FED will likely see a sharp fall to and through 8110/20 for a test of Fridays low…

My technical bias is UP and my fundamental bias is also UP. I will await the correct levels to be tested and held/bounce before entering a position should the situation occur.

<img src=“301 Moved Permanently”/>

Catch you tomorrow![/QUOTE]

Are you going to call some live trades?

13

Ok so at least now we know the trend of the dollar for this summer! Buy buy buy my friends!!! :wink: