Ah. You are talking about this form of news. Yeah I get it. I thought you are asking about intraday news. In my book, specifically I don’t call this news. More of like political related moves that will affect the market; known intentions of central banks. Yes, this is important.
So ok, yes I agree with your perspective in this instance. I do see this as well as historically BOJ has been known to perform interventions and plan advanced moves to weaken JPY.
True… It’s more of a macro event here… But details of stuff like this unfold bits and pieces at a time at the intraday level. So it’s hard to segregate the two until the macro event is fairly unfolded.
Yup. To be fair, it is important to keep tabs on what central banks are doing. Especially if you live specific region, it helps you better to get the feel of things. Those bits and pieces unfolding from the intraday level onto the macro scale will make better sense to you (see below regarding MAS). Learning how to gather and discern the reports/releases is something not quantifiable, although the reponses and actual outcome are quantifiable. So quant systems can go so far; you and I did talk about the ‘left side vs right side of the chart’.
Reading the value of specific currency in view to project what a central bank might want to do is quantifiable to an extent thou. Classical example are of coz BOJ (see both EURJPY and USDJPY; both are near their all time lows on a monthly chart) and SNB (see EURCHF declared 1.2 floor).
MAS (see USDSGD undeclared 1.2 floor; its less obvious, but its there) does interventions too. I live in Singapore, so its easier to keep track of things, using them as a proxy to see what’s happening to the world.
These central banks need to reason out their moves since it will affect the macro scale, so its helps if one can ‘measure specific currency strength’. e.g. my JPYxxx chart also shows all time lows, so its more likely BOJ will do something to increase its participation. The only issue left is ‘when’. Its not the all in all, just an aid to read them faster.
Here ya go… up 14.4% today from day starting balance, and up 31% since 12/28/12
This snap shot is of my last 52 trades, hitting 96%
Today, up 14.4%-- 22 trades, 1 loss and that 1 loss was because it hit a limit buy I had open, and stopped out the short, then swung low, would of been a win, but thats how the game goes sometimes… And, to be honest, the other loss, was the same exact senerio…