Is it a good idea to do hedging? I found stuck most of the time since when the price went to one side, it's take a long time for it to swing back to the other side to close both. Where, or at what price point should I enter a hedging pair?

Please give me your advice.

Thanks.

Hi Kathy & Boris,

QUESTION 1

What do the terms "under or over sold etc" mean?

For example, yesterday when the US New Home Sales data came in weaker than expected, EUR/USD & GBP/USD both rebounded substantially after big declines during the earlier European session, as would seem logical. However, in a later report posted by one of your analysts on the Daily FX website, he said that given that the USD was so oversold the USD would likely re-assert itself later.

Given that the interest rate differentials and/or expectations for the EUR & GBP look supportive against the USD with falling bond yields etc, it seems counter intuitive for your analyst to say that USD strength will re-assert because it's over sold.

I don't think I know what being technically under or over sold means, as opposed to too fundamentally too cheap or too expensive. Please explain?


QUESTION 2

Please could you explain the relationship if any, between the USD and the carry trade? During the current bout of carry trade liquidation, the USD seems to have been a beneficiary as it has risen against all the majors except the JPY, against which it has fallen. A theory to explain this, using the AUD/JPY carry trade as an example goes like this:

Most traders around the world hold their margin accounts mostly in USD, so if the traders sell AUD/JPY, most of the JPY proceeds must go back into USD margin accounts (thus buying USD with JPY). The reason that USD doesn't do better against JPY is that some of the margin accounts are held in other currencies including JPY.

Is this plausible?

Thank you very much

hi i want to know what are the reasons for the sharp drop in the AUD today

hi have a read in the currency section aud and all is explained also read Kathy Lien http://www.dailyfx.com/story/bio1/Do...485282500.html

hope this helps

__________________
Disclaimer:

Aim for success, not perfection.

Hi Everyone,

Here is the link to the Q&A session for Friday! Please continue posting and we will answer your Q next week

http://forex.acrobat.com/p78156840/

Q1:Could you explain this quote on one of your reports. Yen crosses do not include USD, how do these depend on the US stock market? Thanks.

"A rebound in the Yen crosses will however be contingent upon whether we see any follow through selling in the US stock market."

Q2:On KEY TECHNICAL LEVELS table, could you explain the terms "Spot" under
CLASSIC SUPPORT AND RESISTANCE and INTRA-DAY PROBABILITY BANDS. Also the term "Pivot" under INTRA-DAY PIVOT POINTS.
Thanks
Lawrence
==========================

Hi Boris and Kathy,

Firstly I must say that I enjoyed the research material here very much. Although I am a newbie, I learnt quite a bit the last few weeks. Anyway, there is one thing that i am confused. Sometimes there are interesting research made where it is recommended to go long on a pair because of its technicals. However, this is contradictory to the sentiment analysis posted earlier. How do you reconcile that?

Regards;

Rambo60

Hi Kathy & Boris,

I have a couple of questions regarding Fibonnacci retracements.

I'm using the Powercharts free charts from dailyfx.com which I find very useful.

Question 1
When linking significant peaks to significant valleys or troughs, what is the difference between using "Hi/Low" or just "Close" values? In your opinion what works best?

Question 2
Do Fibonaccis work as effectively on all time frames? It seems that they would probably be less reliable on the smaller time frames, what do you think?

Question 3 (not fibos)
In your book Boris (Technical Analysis of the Currency Market), there is a section on using Bollinger Band bands, set at 2 and 1 standard deviations. I've done a couple of experiments on my demo account using this method and it works very well although it generates a lot of heat when prices are in the no man's land area. Is this an unconventional use of the Bollonger Bands?

Thanks for your time answering these questions

my friend approached me cuz they know i trade FX and asked about the iraqi dinar. i told them ive never heard of this currency. they directed me to **** and it seems like a good investment. but i then think, this is a country with virtually all exports so why would the currency appreciate a great amount?like jpy to usd 1:117. but even then i still think that thiscould be a decent investment. any ideas? do you see the dinar appreciating, also is there any chance that fxcm would add this to there currency pairs .

Dear Boris and Kathy,
Thanks for answering my question few weeks ago. This time i have 2 most important question in my mind.

1. Automatic Trading
a. Do you believe in automatic trading ? have you seen a successful one ?
b. I learning some few programming to create an automated algorithm in my trading platform. But i found out that is quiet hard to get tick/backtest data on my broker.. do you know why ? because i think this option give client to do research on their own, testing their strategy... do they 'afraid' if their customer become to successful.. especially when do it automatically ?
c. is it true that most commercial trader program many automated software to analyze many currency pair for their trade ?

2. Trade Management
In a seminar i was told on how important a Trade Management is more than a trading setup, so sometimes a trader don't have to use Stop loss, instead do some trade management like pyramiding, averaging, hedging, grid system, position sizing, use cycle, and etc. I found it hard to find those material, do you have any reference to study for?

have you ever heard partial trading management ? people said its more safe than use martingale system.

Thank you so much, can't wait to see your new book.

Best Regards.

Hi Everyone,

Here is the link to the Q&A session for Thursday! Please continue posting and we will answer your Q next week

http://forex.acrobat.com/p20506302/

Hi Everyone,

We recently updated the calendar on the DailyFX.com website and I know there have been some questions as to whether we have it available in Excel or PDF Adobe Acrobat format. We are still working on getting those live in the upcoming days but for this upcoming week I have the PDF file attached if anyone would like to view it.

DailyFX Forum

Attached Files

Updated Calendar_08-03-2007.pdf (53.0 KB, 162 views)

To FX Stratergists

I have a problem with some of the reporting given on the Daily FX site.

Lets start with the following example:

In the the artical: Friday, 03 August 2007 12:39:06 GMT Instant Insight: Payrolls Fall Below 100k to 92k, Kathy writes:

"Today's news should be negative for both the US dollar and the US stock market".

Contrasting this included in the charts for the writeup British Pound to 2.0400 Before Reversing Lower THURSDAY, 02 AUGUST 2007 11:47:49 GMT, the writeup says the pair is expected:

"to reach 2.0400/73, then flip short".

We which is it - the former is dollar weakness, the latter is dollar strength(?).

Of course the whole lot is "clouded" against a background of no time span indication - which is a great getout clause - in any event, it can't be both guys. There are many examples of this sort of confusing/conflicting info.

Many Thanx

Nick

Today cable fell from 2.0450 levels like a dead duck. I could not see any indication of such a fall in the charts. Is it solely due to stop trigerred or anyother reason? Pl guide me.

Hi Kathy and Boris,

Its me again. I am refering to the Monday article titled:- British Pound Bear Wave Underway - Short Term Targets Near 2.0000. In this article, the JRtrendLT and JRtrendST both says bullish for cable dollar. However, in the analysis below, it seems to say that it is bearish for cable dollar. I am confused. Can you please help.

regards;

Rambo60