At this end of the food chain the priority is to make life as easy, controlled & disciplined as possible because one of your major advantages is flexibility.
How you pick your way from A to B will be heavily dependent on a number of criteria including; personality trait (psychology), preferred style, experience, capital exposure & time allocation.
But that flexibility to manoeuvre in & out of positions more or less at will & flip between & across a multitude of instruments affords you the opportunity to tune into the market rhythm & pulse just as fast & efficiently as the professional community, minus all the heavy lifting involved with their position sizing.
The type of market rhythm presented & discussed here focuses on identifying, filtering & triggering directional biased momentum moves. Some of these moves will last half a day, others half a month or more.
The beauty is, no entry or exit decision needs to be made until the momentum cycle signals you in & out again & to assist with that objective we recommend attention be paid to an instruments average daily/weekly range coverage, the key round numbers/figures, prior session (day/week/month & quarterly) highs & lows + the broker client long/short positional weightings.
Average daily & weekly range info will help to gauge under & over extension of the various pairings you're seeking to take advantage of. The period inputs we've researched & tested that offer the closest consistently accurate application are 1 month (22 days) for the daily & 3 month for the weekly.
Currencies honour these averages pretty consistently throughout the year & the objective when prepping entries is to leg into your bets with as much as them available as possible. Partial/full exits can be planned whenever the daily or weekly averages are extended to their limits & tickbox key levels referred to below.
Prior session levels & round numbers/big figures are premier focal points for currency activity, often harbouring large order tickets, options interest & each-way business, hence the increased volatility often witnessed when they come into play.
Long/short positional weightings are now published live by a good percentage of retail shops. We show how to not only correctly read & interpret this information, but how to incorporate it into whichever style of participation suits your objectives & purpose.
If you're looking for references on support & resistance, moving averages, volume, elliot wave theory, trend lines or any other mass participation eye candy gizmo then you'll need to look elsewhere – it doesn't form any part of the concept presented here.
When seeking to succeed where the majority continue to fail, it would be prudent to avoid the types of activity they spend most of their time engaged in & the information they rely upon to execute their deals.
"pay the ferryman & don't spare the horses!"
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