Bit of a slow friday afternoon for me, so I thought I would plough through a bit of research.
It's always wise to keep abreast of things related to your particular field of trading.
Now I have never been a fundamentalist. Figures and numbers leave me cold and numb the old grey matter in minutes. I'm a chartaholic any day of the week. (Well, Sunday evening to Friday evening anyways).
When trading shares and futures, funnymentals have never appealed. By the time any figures are announced and old joe public gets the info it will have, in general, already been factored into the price of the instrument. I much prefer a chart with volume, you can see instantly what the price is doing.
Bit of a problem then when trading forex, because it's such a vast arena it is neigh on impossible to get the volume onto a chart. (The first company which does so will have a big following).
So anyone who has an interest in forex will know that things can go ballistic at the time of certain major economic news announcements and a lot of people advise staying out of the market at those times.
But what moves the dollar the most? Does it have a regular pattern to it? Is it the same figures that move other markets; for instance the dow jones? And is it always the same figures like the
Chicago PMI or the University of Michigan Consumer Confidence?
The answer to the last question is no.
After waiting for those very figures to be announced at around 2 o'clock on friday afternoon (gmt) and seeing very little reaction to them I spoke to Kathy Lien who is Chief Strategist over at FXCM. By pure coincidence she has just recently finished a paper on this very subject and kindly gave me permission to publish the article to these esteemed boards. So thank you Kathy. But rather than publish it. I have decided to post the link to the article. The reason being is that there is other information there that may be of interest to you.
http://www.dailyfx.com/index.php?option=com_content&task=view&id=819&Itemid=46
Now...taking this a little bit further. Is this info tradable, to us, the little retail punters?
Oh yeah.
If you have a quick finger you may be able to get the spurt when it happens. But a better course of action may be to play the pullback. I won't go into datails of how to trade it, that's not for me to say.
Take a look at a daily chart of the eur/usd, (again I am not going to post up a chart with the relevant bits highlighted because this is where you do a bit of work. I think it also has a bit more impact if you see for yourself rather than have it pointed out).
There are some big daily moves at the start of each month (most times) from between the 1st to around the 5th. I've just realised as well that this time has been opportune for medium and major term changes... and this current down trend began at the start of the year. So this time of the month appears to be a regular kicker of about turns for this market. I have only gone back to 2002 but this has developed into an exercise in time and price for me.
I hope you find this interesting... I certainly have.
It's always wise to keep abreast of things related to your particular field of trading.
Now I have never been a fundamentalist. Figures and numbers leave me cold and numb the old grey matter in minutes. I'm a chartaholic any day of the week. (Well, Sunday evening to Friday evening anyways).
When trading shares and futures, funnymentals have never appealed. By the time any figures are announced and old joe public gets the info it will have, in general, already been factored into the price of the instrument. I much prefer a chart with volume, you can see instantly what the price is doing.
Bit of a problem then when trading forex, because it's such a vast arena it is neigh on impossible to get the volume onto a chart. (The first company which does so will have a big following).
So anyone who has an interest in forex will know that things can go ballistic at the time of certain major economic news announcements and a lot of people advise staying out of the market at those times.
But what moves the dollar the most? Does it have a regular pattern to it? Is it the same figures that move other markets; for instance the dow jones? And is it always the same figures like the
Chicago PMI or the University of Michigan Consumer Confidence?
The answer to the last question is no.
After waiting for those very figures to be announced at around 2 o'clock on friday afternoon (gmt) and seeing very little reaction to them I spoke to Kathy Lien who is Chief Strategist over at FXCM. By pure coincidence she has just recently finished a paper on this very subject and kindly gave me permission to publish the article to these esteemed boards. So thank you Kathy. But rather than publish it. I have decided to post the link to the article. The reason being is that there is other information there that may be of interest to you.
http://www.dailyfx.com/index.php?option=com_content&task=view&id=819&Itemid=46
Now...taking this a little bit further. Is this info tradable, to us, the little retail punters?
Oh yeah.
If you have a quick finger you may be able to get the spurt when it happens. But a better course of action may be to play the pullback. I won't go into datails of how to trade it, that's not for me to say.
Take a look at a daily chart of the eur/usd, (again I am not going to post up a chart with the relevant bits highlighted because this is where you do a bit of work. I think it also has a bit more impact if you see for yourself rather than have it pointed out).
There are some big daily moves at the start of each month (most times) from between the 1st to around the 5th. I've just realised as well that this time has been opportune for medium and major term changes... and this current down trend began at the start of the year. So this time of the month appears to be a regular kicker of about turns for this market. I have only gone back to 2002 but this has developed into an exercise in time and price for me.
I hope you find this interesting... I certainly have.
