Good point, I don’t believe P&F were designed to catch the small changes and moves. It would seem risky to try to modify it in a way that it goes against the strength of its methodology, which is a trend following system. You can argue that it’s actually the opposite of what say a day trader would want in terms of useful information that would give you a trading edge.
If the P&F were designed to filter out the noise of consolidating moves of a pair, and you’re using it as an indicator to enter on these price movements, that seems kinda risky. Still I love the idea of P&F, I hope to find someone who really has been able to apply it successfully with Forex. It would seem better on other instruments though.
–Gold Prices Range bound till New Effective Triggers are seen:
–Gold traders now look ahead to next week and movements in gold prices will be taking cues from the FOMC interest rate decision on Wednesday and Q3 GDP data on Friday.
–It is highly unlikely for the Fed to change its QE3 decision in the October 2 day FOMC meeting, which concludes Wednesday.
–Although the central bank is not expected to alter its policy stance, investors will be closely eyeing the accompanying statement for an updated assessment of the domestic economy.
–If the Fed adds concerns about inflation and rising prices, gold prices will remain well supported as investors flock into gold bullion as a traditional hedge against inflationary pressures.
–The Fed may also keep focus on what to do when Operation Twist ends in December.
[Written forexpros]
–The AUD/USD pair initially fell during the week, but found a bit of a bid later on and formed a hammer.
–This is right after to shooting stars, and is in the middle of a massive consolidation area.
–We figure that this pair will be very difficult to trade, although it does look bullish at the moment.
–As for a longer-term point of view, the Reserve Bank of Australia is slated to cut rates at least once if not twice.
–This should weigh upon the Australian dollar going forward, as well as all the global risks out there.
–However, it appears that as far as longer-term trader concerned, we need to break above the 1.06 level to have complete clarity higher.
–If we managed to break down below the 1.0150 level however, we figure that this pair will absolutely crumble.
[Written by fxempire] ↓↓↓ Click to learn more!↓↓↓
