Technical and fundamental

Trading Discussion
21

EXACTLY – the whippyness of the markets recently is caused by a tremendous influx of traders from the normal stock exchanges who cant do efficient STOCK trading because of current conditions, therefore they daytrade the indexes and have “discovered” forex.

having come over to our side, they have thrown away the fibs, instead depending on support and resistance AND the technical indicators as used in equities, and MANY are trading the 15 and 30 second charts, making even a ONE minute chart move take 5 minutes — imagine how long it takes a 15 min chart to come home ? (actually, by the end of one hour and a half period, it does !)

the H1 is STILL excellent, but doesnt move till overnite (europe and the other side of the world trading) but can return some fabulous profits ! the H4 needs overnite and most of the rest of the next day to come home !

fundamentals still MOVE the market off its trend, but one can certainly expect any great UPMOVE to be greeted by an almost equal DOWN MOVE, as the longs become shorts and all that normal daytrading !

and since EVERYONE is looking at the technicals, the prophecy fullfills as everyone is TRADING by them.

anyway, with all the hoopla about fundamentals, the technicals read whats happening and its just as easy to hop on a trend that “might” be generated by fundamentals because the technicals simply tell you to get moving — anyone who trades by fundamentals is doing a great disservice to themselves if they dont use some indicators to VERIFY what they believe “should” happen !

enjoy and trade well

mp

[B][I]Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !

As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence – BUT I KNOW WHERE THEY HID THE KEY !![/I][/B]

22

for sure, and because they�ve realized trading in shorter time frames is profitable and longer may be too risky. On the other hand, because markets show a high volatility, scalping may be attractive but I guess traders must use especially technical analysis and own several strategies. Adrian

23

Scalping can be profitable, but trading longer time frames also can, it is a matter of strategies I guess, though I must admit that scalpers have the opportunity to make some good pips these days.

24

given equal abilities, the scalper makes far more than the position or swing trader, simply because they play the existing trends up and down cycles !

those who take a single position and hold will be subject to the “drawdowns” we are all familiar with, but the scalper is working the “drawdowns” or retraces or dips, just as well as the upside moves.

enjoy and trade well

mp

25

Risk is equaly present on both positions. What makes it more or less risky is your strategy, If you decide to adopt a long position, be prepared for anything even your trade turning against you.

26

That is why I decided to concentrate on the technical analysis during these days because there are not really important news affecting the market for now, I checked the calendars and the levels of them are low. By the way I�m learning from about volatility. :o

27

hey, I just agree with you if you say that there are few important news because of the holidays but for me, it seems there are lots of news daily that may affect this market. keep in mind we are in crisis times then lots of events are affecting markets every time. Adelin

28

Well my friend you better get used to volatility because you may be facing it during your trades. You can maybe try some price action and pattern recognition.

29

Although I don�t agree with the technical analysis only strategy, I have to admit these days have been pretty mellow

30

Ok, thanks guys for the suggestions so Ill take advantage and get in use with this crazy volatility, maybe it is the right moment to face it, Thanks.

31

I am here to wish you all a happy new year; I guess we’ll meet here next year to share our experiences with markets on 2009. Hopefully we get to see an improvement.

32

Hey thanks for your wishes, I hope to see the improvement during this new year too, good luck with your pipping.:slight_smile:

33

why this thread stopped last year? Especially at the beginning of this year there are many facts and events affecting the economy in the world. Then, volatile markets are usual� I keep my point of view, fundamental always give us good tips to trade with

34

Hey Adrian76, what about Obama�s new plan and the decreasing unemployment percentage, it is suppose this year the situation will be controlled and almost solved it. What is your opinion about this new in relation with the Forex market?. I don�t know how to combine predict the market based on the fundamentals. :slight_smile:

35

obama will try, but recover the economy may require more time than his mandate. I read about more loans, cutting taxes and relating it to currency performances is traders challenge.