Thread: Closed: Discuss EUR/USD News with a DailyFX Analyst

2620 to 2800 in a couple of hours...

Anyone care to comment on what the driver for that was???

I did quite nicely out of it but I prefer to understand what's going on :-)

Maybe a third wave is under way on the daily after all... bit early to say that but...

Originally Posted by Gregory McLeod

Hey guys

I try not to let my trade go to the full 40 pips. I usually scalp in the direction of the 30-minute trend and the ATR is usually around 40 pips. For example, during my live Active Trader trading session, I scalped 5 trades in a row for 50 pips on GBP/JPY in 12 minutes but gave back over half on two trades for 36 pip loss or around 18 pips per position. One of the two lots was up 9.9 pips . So I walked away with 11.8 pips out of 50 which is better than a "sharp stick in the eye" as one of my friends on the desk likes to say.

I usually have a high win percentage which offsets the occasional wide stop. Ideally, I would like a floating stop that adjusts with the distance price is trading from a 30-minute trend line. So if price gets below that 30-minute trend while I'm scalping long, I can be SAR (stopped and reversed) in the new trade direction. When price is bouncing from the 30-minute trend line, my stop can be very tight, but as price moves from this line, the stop can be widened accordingly. I don't have the language ability to program this so I make do with a 40 pip drop dead stop which I can close out my trade before hand at my discretion. Because I enter and exit trades so fast, I don't have time to go back and adjust the risk and reward for every trade. Typically, I may take 20-30 trades a day in 3-4 hour period.

Thanks for the reply, Greg.

Your floating stop indicator is giving me ideas -- I think I'll try throwing together an MT4 custom indicator to do that... :-)

KUTERO!

I wanted to ask about MOSTL. As it is made by a Turkish programmer and I suppose there is no chance to put that indicator to our own charts on our platforms then do I understand correctly that if I use EMA 5 and EMA 9 it will be quite close to MOSTL?

Also, does this work only with EUR/USD or any currency pair?

Thx.

Just the nature of the market. It never moves in a straight line. EUR/USD has fallen quite a bit in the month of August. A little bounce is certainly to be expected. Take a look at the daily chart over the last few years and you will see what I mean. Note that the 200/100 day MA are heading down like missiles. Short the rallies and you will be OK for now.

Dear Donn,

Yes, there is no chance and quite close to EMA's.
It is working with all pairs, dji, s+p etc..

yyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy

got entangled on the swissy again... can use a lil prayer here..
Euro picture perfect.............


GL...

Good Morning Traders. 234 pips with 30 wins and 8 losses - I was using TSII platform and took advantage of the positive US Stock Market Futures and renewed appetite for risk to trade GBP/JPY, GBP/USD, EUR/CHF, etc to the long side. The early morning trading before the ADP employment report was resulted in the 8 losses as the markets were not willing to commit to a specific direction.

The Active Trader Pricing Model can be applied to the TSII platform. Contact your Active Trader specialist for more details.

Originally Posted by Renegade

Just the nature of the market. It never moves in a straight line. EUR/USD has fallen quite a bit in the month of August. A little bounce is certainly to be expected. Take a look at the daily chart over the last few years and you will see what I mean. Note that the 200/100 day MA are heading down like missiles. Short the rallies and you will be OK for now.

Are we looking at the same currency pair? The long term trend in EUR/USD has been sideways to up since well before 1999 when EUR came into existence as a conglomerated currency. The all time high was in 2008... I don't call that a little bounce. Now yes, we are well off that high, both time wise and price wise, but I'm struggling to see the rally out of June 2010 as corrective, and if it is, I really can't see it as a completed correction. How do you count it?

Originally Posted by mark27q1

Thanks for the reply, Greg.

Your floating stop indicator is giving me ideas -- I think I'll try throwing together an MT4 custom indicator to do that... :-)

Hey Mark! You are very welcome! I would appreciate it if you could share it with me when you get it done!
gmcleod@dailyfx.com

Originally Posted by mark27q1

2620 to 2800 in a couple of hours...

Anyone care to comment on what the driver for that was???

I did quite nicely out of it but I prefer to understand what's going on :-)

Maybe a third wave is under way on the daily after all... bit early to say that but...

The pop in the Euro seems to be a sympathy move with the blockbuster Aussie GDP number that was released earlier which has carried over to the European and US trading sessions.

Upside in the Euro maybe capped at the 1.3055-1.3181 area before possibly moving lower.

I'd like to see the Euro take out the August 6th high of 13332 before I put my bull hat back on.

Originally Posted by kosmas1212

Banks’ shift pushes FX trading to $4,000bn a day

By Peter Garnham and Jennifer Hughes

Published: September 1 2010 00:04 | Last updated: September 1 2010 00:04

Currency trading has surged to record levels in 2010, even as the foreign exchange market becomes increasingly concentrated among a smaller number of banks and trading centres.

According to the Bank for International Settlements, an average $4,000bn is being traded daily, up from $3,300bn in 2007, when the BIS last surveyed the market.
EDITOR’S CHOICE
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Icap to launch rates platform next week - Aug-31
Backlash prompts rethink on forex leverage - Aug-31
Renminbi deposits jump at HK banks - Aug-31
Swiss franc jumps to high against euro - Aug-31

Bank executives have become increasingly interested in foreign exchange, or FX, as part of their search for less risky sources of profits following the financial crisis.

FX trading is a so-called “flow” business in which profits are made from trading commissions rather than risking increasingly expensive bank capital.

The rise in turnover has been driven by a near-50 per cent jump in “spot” FX – currencies traded for immediate delivery – to $1,500bn a day.

The BIS report also showed that London has increased its dominance of the currency world, accounting for 36.7 per cent of global turnover, up from 34.6 per cent in 2007.

The US was second, with 17.9 per cent, compared with 17.4 per cent last time, while Japan retook third place from Switzerland, with a 6.2 per cent share.

Simultaneous data from the Bank of England on Tuesday highlighted the increasing concentration of FX among a handful of banks. According to the Bank’s report, the 10 banks with the highest FX turnover increased their market share to 77 per cent from 70 per cent in 2007. The top 20 accounted for 93 per cent of the market.

The biggest banks in the FX market are Deutsche Bank and Citigroup. Other top players include UBS, JPMorgan and HSBC.

According to the BIS, the higher market turnover reflects increased trading activity by “other financial institutions”, a group that includes hedge funds and other non-bank counterparties such as pension funds and mutual funds.

Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

This is an astounding figure! I remember when FX was trading only $1 Trillion per day several years ago. Thanks for posting that kosmas

Originally Posted by Gregory McLeod

Good Morning Traders. 234 pips with 30 wins and 8 losses - I was using TSII platform and took advantage of the positive US Stock Market Futures and renewed appetite for risk to trade GBP/JPY, GBP/USD, EUR/CHF, etc to the long side. The early morning trading before the ADP employment report was resulted in the 8 losses as the markets were not willing to commit to a specific direction.

The Active Trader Pricing Model can be applied to the TSII platform. Contact your Active Trader specialist for more details.

Hi, Good morning. Mr.Greg

How could I get The Active Trader Pricing Model ?

Thanks

Eur/Usd:

Greetings All

I am currently taking a back seat and away from the "populus" to focus and concentrate on what I believe in rather than being privvy to an array of thought.

Whilst some are wondering about the drivers and the next move, the Twin-Speed RSI's continue to perform showing when to enter and when to exit each position over any given time frame ( albeit on a 1 minute TF that is more difficult to determine ).

Here is the 1 hr chart showing the situation as clearly as I can produce it.

Best wishes to all.

Colly
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Attaching Eur/Usd 1 hr chart

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Originally Posted by Gregory McLeod

Good Morning Traders. 234 pips with 30 wins and 8 losses - I was using TSII platform and took advantage of the positive US Stock Market Futures and renewed appetite for risk to trade GBP/JPY, GBP/USD, EUR/CHF, etc to the long side. The early morning trading before the ADP employment report was resulted in the 8 losses as the markets were not willing to commit to a specific direction.

The Active Trader Pricing Model can be applied to the TSII platform. Contact your Active Trader specialist for more details.

Man how that looks good, sent you an email Gregory