Jayson, you are not alone!

Retail traders are getting the short end of it in the whipsaw trading over the past many days.

My suggestion is, use my GRAY algorithm (Greedy and Risk Averse Yet). Use 1 pip stop loss (or something very tight). If you catch a breakout then let the profit run for 100 pips. Else, it is ok even if you lose 80% of the trades (which is usual in forex trading). Reduce the risk! That is the key.

Please, visit my blog at GLOBAL TRADER INDICATOR thanks!

GLOBAL TRADER INDICATOR
Reading between the lines- Today markets gave us a lot of new information. Lets read it, line by line:


Today markets gave us a lot of new information. Lets read it, line by line:
1. Ted spread higher in year:
This spread measures the difference between 3 months libor and 3 month t-bills. In last days (and in previous crises) this spread rised because of the higher libor. This was the result of higher risk aversion, with banks demanding higher premiums to loan money. Yesterday we saw this, but today a libor decreased. The new stuff was that the ted spread skyrocketed because the yield on 3 month t-bill went south to almost zero. The only way to read this is that everyone lost the confidence on financial institutions. The only secure place to put your money is on short-term t-bills, or bellow your bed...

2. US dolar falls:
When compared to a basket of the main world currencies the US dolar lost value today. There is no free lunch, so what happen when fed uses more and more dollars to bail-out financial institutions? For small bailouts, fed reserves are enougth, but when the amount starts to be high, the fed needs to print more money. With more money and the same wealth... We get a lower dollar value.

3. Euro is also weak... JPY is weak too!
This time, the financial turmoil is global. The globalization spread problems around the world so we shall expect same problems worlwide. This is why forex exchanges are relatively flat (when compared to gold...)

4. Gold rises most since 1999:
When people can not find secure places to deposit money and cannot find safe currencies... Gold is the safest place to be.

5. VIX reaches 36:
In the last year crises this was a signal of a bottom of the equity markets. I think that this time we are in the eye of the storm, and we will probably face a major movement. Looking for history we can see that in some important crashes vix went above 40! I believe that we will meet such a vix this time, so i will not be surprised to attend a big crash this week.

6. Recovery will be slow:
This kind of financial crises lasts on average 3 years. We are in the second year... Is this time less problematic than the average crisis? I suspect it isn't. Don't be affraid to lose some rally... Markets will not rally so fast and furious as most of us would like.


CONCLUSIONS: short currencies/ long gold.
first published at myblog

You cracky me uppy!!!

I'm looking for a pullback to 4200 to go long, BUT I rarely, if ever, open a position during this time period. At least sometime after 8 PM Eastern, after I have had time to make some calculations and reassess where the support and resistance falls.

I get long now at 1.4309, in case Asian push it higher directly from above 1.4300. SL 1.4270

Will move sl soon I get a chance.

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I went short at 4331. I believe there will be a retracement till late Thursday, New York time, then an upmove will resume.

you are right, specially these days... I am using 10-20 pips SL, moving it to BE as soon as possible.. then, if market moves in my direction great, if not, I get out with 1 or 2 pips profit... one dollar is one dollar... current market conditions are not "normal"... ok, a lot of things are not "normal" on these days...

best,

A.

We all need a little humor

No sure if Asian traders can push it through 1.4400 soon.

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Looks like you may be right, but I still want in lower. I may not get in, but that is ok, too. Currently looking to get in if it retraces at 4267. If not, will re-evaluate my position potential at the beginning of London. It would be nice if there were some volume, and a little less volatility out there.

I guess misery needs company.

hello to every members here!
i have been reading this forum post for sometimes and what i would to you guys are braves. this's an ultimates newbies forex lab. i' have burned several times trying to short EUR/USD down to 1.300 area. now i switched to short time frame. 10min ,15min offer some good opportunities. now stochastics and sms's crosses. so what kind of software can i use to alarm me when my signal hits my pre determinated entries? any idea i cant watch multiple currencies pairs 24 hours. any recomandation?

I dont get you guys... an ascending triangle usually explodes bull... and the US data from today was so crappy that London will have to adjust in 3h... am I wrong?

Hi,

Pls qoute good analysis on the relations between the 2 currencies here, and what this will lead to other industries, such as real estate market, oil market, gold market...