PREDICTING EUR ON CONSUMER CONFIDENCE
EUR is positioned to lift on Consumer Confidence…
[UPDATE] In this case, EUR did not move and even
slightly weakened. No further EUR news until tomorrow
at which time, we would continue to expect EUR to
then rise, with multiple news events.
In other words, News doesn’t always drive the currency,
especially on minor news events
Above, EUR (the green line) can be seen as relatively
weak.
A BUY of EUR/JPY or EUR/CAD would be a fairly
good idea for a medium term hold, based on the data.
hyperscalper
SCALPING ON A BINARY OPTION USING CURRENCY DIVERGENCE
For scalpers, opportunities exist for Scalping a sensitive Binary
here showing CloseOption testing on a live account; by using
Currency Divergence, here anticipating reconvergence of 2
Currencies AUD and JPY to drive movement of the AUD/JPY Pair.
[edit] This could also be used with Nadex Binaries, which
operate in a very different way, but potentially more profitably.
hyperscalper
PREDICTING CAD RETAIL SALES ONE HOUR FROM NOW
This is going to be a difficult decision, but our consensus
would be that CAD will weaken on the Retail News.
This is a difficult decision because CAD is roughly mid-range
in its positioning for the week. So it takes some thinking…
The News is 1 hour away, as I write this, and Selling CAD/CHF
could be a good pairing to choose. There are other pairings,
such as Buy EUR/CAD or GBP/CAD, but I’ve personally
chosen to Sell CAD/CHF using a PUT option on CloseOption
dot com .
These 3 possible Currency Pairings for CAD
appear the most promising… Details to come,
Watch this space ( 12:37 GMT now ) for the News
Event outcome at 13:30 GMT.
We always try to get in BEFORE the event, and never
during the volatility which often occurs…
[UPDATE] 10 minutes before the CAD Retail News…
[ UPDATE 14:00 GMT ] CAD is currently NOT dropping,
probably due to the mixed Retail news where Core
Retail was weaker; but “normal” ?? Retail was stronger ??
Whatever that means… LOL
Well, CAD’s not called “loonie” for nothing !! LOL
Finally, we’re seeing CAD relax… And, don’t forget,
this is a Friday so weirdness rules apply
hyperscalper
PREDICTING USD ON THE FOMC RATE NEWS
Here is the trend of USD ahead of FOMC so we predict
USD will weaken. However, USD does not move readily,
so the weakening may occur more gradually.
Using a Divergence view from 72 hours into the past, we can
see that NZD could be a good secondary Currency to form
a tradable pair, on the expectation that USD will weaken.
NZD/USD is an inverse pair to USD so USD weakening is
associated with a rise in NZD/USD Pair.
[RESULT] Basically USD did almost NOTHING on the
FOMC News. A slight dip and return to same valuation.
Go figger LOL Hey, sometimes nothing happens
hyperscalper
AUD Rate Statement will be our next target, set
for 03:30 Tuesday . (Always think in GMT/UTC instead
of your local time). So here is AUD at this time, noting
that we always look at the Big Picture and then
progressively zoom in:
[update] in 15 minutes, AUD appears set to LIFT on Rate Statement News
[result] AUD/JPY +25 PIPs instantly… pretty much a textbook prediction
[10 minutes in] +45 PIPs AUD/JPY so an unqualified success LOL :)
In pricing terms, for the Currency Pair, it looks like this:
hyperscalper
NZD Employment News is coming Amid NZD Recovery
We have 6-7 hours before NZD News, so we begin by looking at
the bigger picture here using the Standard Chart.
More as we approach the News Event, which will not be
as much impact as a Rate Decision, but nevertheless
Employment is a strong indication of health.
[update] Looking at 12 hour Divergence, we note that
NZD has been elevated, so we may assume it will WEAKEN
on Employment, but we are still at least 5 hours from
the actual News Event.
[update 1 hour away] NZD holding elevated:
[outcome] We were just at rollover, and NZD held high, mainly
because the Employment result was actually good, whereas
the market had planned to drop. So it held, over the Rollover
period, and then eventually weakened just a bit… Not the
greatest trade, but worked out fine:
hyperscalper
USD ADP NON FARM EMPLOYMENT
The Market is looking for weakness in USD but is not seeing it.
The ADP Non-Farm Employment was very strong so the USD
remained in a strengthening trend.
BUT the market was clearly looking for any weakness as an
excuse to drop the USD But, it just hasn’t found it yet ! …
Above, you can see they were ready to drop USD but the News was
just too good. And, below, we can see that in the bigger picture
using our Standard View, that USD is making a double top so,
once again, we are looking for an excuse to drop USD but just
haven’t found one yet…
Understanding what’s being expected is as important as
trading for the big wins !! LOL
hyperscalper
USD ON NON FARM EMPLOYMENT
Our prediction would be some weakening in USD on NFP
based on 6 hours Divergence just 10 minutes from the event:
[results]
USD sagged very slightly, due to its elevation; in the face of Good NFP Jobs report.
(Also, we see CAD spiked upwards on its good news as well… but we didn’t have
a prediction for CAD)
NOTE: also this is a Friday so volume is lower.
[finally] Our directionality was correct, though the move was muted:
hyperscalper
@HyperScalper, would any of the app crap from the Iowa caucus effect or become the “reason” to take the dollar lower? Or would that be considered small potatoes compared to NFP report.
KC
Yeah, good question. First of all, the SNAFU in politics is not so much
a focal event but also I doubt very much it would affect USD. An
election later this year might do so…
It’s important to note what we’re trying to do here. Instead of listening
to pundits predictions on fundamentals; we are trying to watch
where Market Makers are putting their investments, by watching
CURRENCY trend valuations instead.
So, as I’ve said before, we’re looking for local bubbles in valuations
from the perspective of pure Trading in the Forex markets, as
the key to our trend reversal predictions.
I wish more would ask questions; since this is a valuable approach.
hyperscalper
WHAT WE CALL TRADING THE FIVES
This is an informal label for Standard Chart entries which exceed
the somewhat arbitrary levels of +5 and -5 as seen here. Consider
that Trading the Fives here would have yielded +160 PIPs in just
a few days:
Above is the fives data suggesting BUY AUD/CHF at close on Friday.
Here is the Price result for the AUD/CHF pair:
Impressive, right ?? This is not News Event trading but a different way
of using CURRENCY TREND data…
[comment] Here we might conceptualize the end of a week as something
of a reversal ‘news’ event ; one which happens every week ! LOL
hyperscalper
Your process and analysis reminds me of stock analyst from decades ago. Richard Ney. He really blew the lid off of how the stock market was being manipulated by the market makers. What’s sad is the government really didn’t want to deal with it. That may speak to the power of big money.
He wrote two books on the subject, The Wall Street Jungle and The Wall Street Gang. Both are great reads despite their age.
He was an incredible chart reader like yourself and understood how to read and recognize the tell tale signs of what was on the horizon.
Thanks for this thread! It is invaluable, I just have to become better at reading it!!
tx,
KC
THE CURRENCY ANALYTICS DATA IS THE KEY
I run a full time dedicated Linux machine to crank out this
data, which is fundamental to this approach.
Once you have the data, and can see what other
traders can’t see… then the predictions become much
easier.
Forex traders who traditionally focus on Currency Pair
movements, just can’t see the individual Currencies
as they are being positioned.
So, the approach in Forex which most traders use, is
very confusing, in my view. That’s why I’m taking some
time to put this method forward. Unfortunately, Forex
traders don’t have a standard way of getting such
information, even though Currency Meters so-called
have been around for decades…
hyperscalper
to put it in Laymans terms alot of successful Traders go with the original Trends strength and buy at the dip
Could you clarify your point?
nothing to really explain, just see the dip or peak an opportunity to buy or sell during a strong trend, though as you know nothing is black and white
When you say “trend”; the trend of what?
This thread is focussed on CURRENCY trend reversal on
News Events; and not on Currency Pair trending.
And that is CURRENCY trend reversal; as opposed to
continuation.
hyperscalper
WONDERING WHAT USD IS DOING ?
Is the Market finally looking to find weakness in USD and SELL
it in the near future ?? A 6 week Currency Trend upward may need
some pullbacks ??
hyperscalper
1 Like
@HyperScalper,
I am short USD. May have gotten in too early.
KC
point taken good luck with your theories