Here’s little more market Monday.
- GBP (blue) most bid that session +.97%.
- CHF (pink) most sold that session -.68%.
- Positive flow 1.52%.
Ok. Well, the GBP bounced back. Interesting to see that those 2 currencies are the polar ones (most bought and sold for this quarter running). I don’t know…I don’t think much of that. It really is a crap shoot about who takes a session and losses. We just really never know how it’s gonna turn out. But at least it’s nice to see this every now and then.
Today is a typical Monday, slow moving market. Up to this point anyway. And let’s just remember, that all this is giving us a sense of what happened. And, in this case, it shows us how much of the money has been going where.
This subject actually reminded me of a conversation I had with a trader, last Thursday (I meet once a month, first Thursday of every month, with other Forex traders around this area, a bit of a club). Anyway, this guy was asking what I thought about volume. And it was funny that I was just thinking about that factor earlier in the day.
And I told him my thoughts on it. It is a good indication of things. It tells us how much money is moving. We actually don’t know particularly in which way, but it does tell us that money is coming in, one way or the other. That is a good thing to be aware of, no doubt.
So, after much thought on how I am viewing the market, I believe this whole method of tracking how much the currencies are increasing or decreasing is pretty dog-gone close to the volume indicator. How, you ask?
Well, think about it. All we’re doing here is finding how much of a particular currency is being bought, consecutively, over a period of time. In fact, on a monthly basis (beginning and ending with the month’s calendar). Also since the beginning of the year’s calendar. Also…for a quarter.
I kind of think of it as a longer term volume indication. Cause if money continues one way or the other, and the percentages are getting bigger or smaller, then isn’t that telling us whether one currency is favored than another?
We also can’t forget that everything is relative. It all depends on what time period we are talking about. And I’ve said it before. Our trades should stay within the confines of our analysis’, time wise. I mean, that only makes sense. Needless to say, the time frames that we are looking at should be the right ones. And we all know that there are many of them!
Sorry 'bout that …
(You know what I’m gonna say)
Alright. Make it a good day today. Let’s give it the best we got. And keep on learning.
MY DAILY’S.xlsx (427.4 KB)