Let’s see how it’s rolling out today.
- USD took the session +1.74%.
- NZD lost the session -4.24%.
- Negative session -8.32%.
Well, we got some movement happening during London’s morning time. Even though the USD was the most bid this session, I kind of think the attention went to the GBP. They were bid by 1.46%. It is their session don’t forget. Plus all of the stuff that’s flying lately with them. Should be of no surprise with that. But, I do have to say, what a turn around from yesterday’s lows they hit. Man…you don’t see it here with these points in time, but they about crashed it yesterday. Only to do a real good about face. So, it’s interesting. And also makes the point, again, that the end of day numbers are more telling than what happens intraday. In the long run.
So. Changes. Well, I find it interesting how not only how they climbed…but how both the NZD, AUD, dropped a good bit, with the CAD climbing more. You know, I guess it is important to know in which session you are in. There is a bias in the market. Not all currencies are treated as equal. It does depend on who’s awake or not. Therefore, I think it’s important to remember that dynamic. And when you think about it, the USD should be the one currency that might span across all sessions. Cause they are the world’s currency. Right? The others will tend to be more in focus during their respective sessions.
Look. This is a dynamic. And I guess I need to make things clear in here.
This thread is called Complete Currency Dynamics. This is NOT a thread that is strategy focused. You’re not going to find how to trade, where you should get in at, where a stop loss should be, risk management talk, position sizing or any of that nonsense. That’s all up to the trader to figure out. Everybody should find their own way of trading. And guess what? Everybody should have a different way…unless you have a twin that trades, also.
All I’m doing in here is making sense of the market. There are many things going on with this beast. Many assets are moving. And guess what? They relate to each other. This is especially important when the nature of trading the forex market has to do with trading 2 currencies at the same time. There are many, many different dynamics at play here. All I’m doing is pointing out some of the dynamics that tend to be predictive. Like who’s most in demand, most sold. It does happen to follow patterns. Just look at the line up. Over a course of a month, you don’t see all 8 of them in any kind of disorder. There is order. The strongest will tend to stay that way for a length of time. Same with the weakest.
If it were completely random, it would look soooo much different. See, money, knows what it’s doing. There is intelligence behind where the money wants to go. It’s not by accident. And when the majority agrees where it wants to go, then you’ll surely see, it over time.
So, what are we supposed to do? Be ignorant of what’s taking place? Or are you short sighted enough that you don’t care what’s actually taking place. You don’t care about anything else but having someone tell you that you should get in here, and get out here.
How about this question. What tells you which currency pair you should trade? So and so told me…I’m from here and it’s the most popular…It’s the most liquid…This pair moves the most…It’s everybody’s favorite (coughEUR/USDcough)…Well, in here, it happens to be the most in demand against the most sold. And how do I know that answer? I keep track of them all. On a monthly basis. And I can see, with my own eyes, when the changes take place. It’s on not too small of a time frame, it’s on not too big of a time frame, is mostly on by a session by session basis. Also on a daily time frame basis.
And that leads me to want to know how they are all relating to one another. Why? For some kind of sense of the future. Because that’s the business we are in. In fact, every single trade that is made in the world has a sentiment behind where it wants to go in the future. Called direction. Everybody has a wish of what the direction they want it to go in.
So, the biggest question I will always have, and I do ask that every single day in here, is what’s happening? How are they relating to one another? It’s all found out in knowing what the dynamics are. Look up that word. It’ll make sense. I’m not guessing in here. I’m not speculating in here. I’m just throwing out a perspective. And if you can’t see any kind of patterns throughout this system, then you need to figure out another way.
This is all but a diagnosis of this market. I’m not going any further. This is the best way I know how to know what’s going on. And btw…this doesn’t compare to the standard heat maps that are out there. Are they broken up into bigger time spans? They don’t unfold. All they are is snap shots of what’s happening in one day. Well, what about yesterday? And last week? Last month? Last quarter? And so on.
Well, I’m collecting all of this context. And as this rolls out, I can promise you that I will be able to contextualize it all and show patterns that have taken place. I will be able to possibly see what’s up ahead in the future, moreso than just as a hope.
Alright. I’m done talking.
MY DAILY’S.xlsx (134.9 KB)