Almost every type of trader looks at charts, at least some of the time. Plenty of retail traders, high net worth traders, hedge fund managers, macro traders look at charts. Everyone looks at charts. Even George Soros and Paul Tudor Jones. When Paul Tudor Jones saw the stock market crash in 1987 and 2008 he …
Originally posted at forexfactory on April 6, 2011: Well, you need to ask yourself does the market move 5-7 pips in your favor mean that you need to move your stop (physical or mental) to breakeven or closer to your entry point? Does your system tell you that if the market moves 5-7 pips, you …
There is a common held belief among many investors that diversification is good. It may have been taught to them in school. It may have been taught to them by their parents. It may have been taught to them by many financial advisors. And to many people, it makes logical sense. Most people are risk …
Originally posted at forexfactory on April 2, 2011: Want to short gold at these levels? I will gladly take the other side and go long. My sense tells me the fundamental value is a bit higher than current levels Click Here To Get The Free Report
If you have watched USD/JPY at all, it has usually been making these weird spikes upwards sometimes for 50 pips, other times for 100 pips that usually get corrected within minutes. Since the August 4th, 2011 intervention by the Bank of Japan, I count the market as making six of these spikes up. All of …
Originally posted at forexfactory on April 2, 2011: I specialize in foreign exchange order flow, the money flow between nations, global macro of currency (to the extent that it affects the markets). I always ask myself. Where is the money flowing? Why is the money flowing? What expectations are attached to this money? What are …
One of the many misconceptions about order flow trading is that it is only tape reading. Many people believe that you can only trade order flow if you do tape reading, or ultra short scalping, or some form of statistical arbitrage, or high frequency trading. Tape reading can definitely be one form of order flow trading. You …
Originally posted at forexfactory on April 1, 2011 Ok, here is the response I promised you guys. I will introduce sentiment order flow and fundamental order flow into the equation. Sentiment – Can provide a bias for a certain period of time. My experience has taught me there are different types of sentiments. There can …
You need to be very careful about currency correlations, or currency pair correlations with some other market like the stock markets or a commodity like crude oil or gold. There can be correlations between currency pairs and some equity index and commodity. Many traders can link both trades together. For example, someone could potentially go …
Originally posted at forexfactory on March 22, 2011: Whether someone has placed an “order flow” trade or not kind of depends on the reasons for why you believe the trade went in your favor. Every time the market makes a 50 pip move, 100 pip move, 500 pip move, 1000 pip move, chances are there …