Trading with point and figure

[Dentalfloss]

DAX into the open

 

[Dentalfloss]

Levels today but its the BoE that has the limelight

SPOT ON...:smart::smart::smart::smart::smart:
that is all you need for premarket preparation
chart is virtually the same as mine
excellent

 

[Moneylender]

SPOT ON...:smart::smart::smart::smart::smart:
that is all you need for premarket preparation
chart is virtually the same as mine
excellent

Thank you kind sir.

 

[Dentalfloss]

SPOT ON...:smart::smart::smart::smart::smart:
that is all you need for premarket preparation
chart is virtually the same as mine
excellent

then mark the levels on the chart
you might need a close up of say 1 min to get a few more levels...sometimes necessary,,,sometimes not

the main thing...you have isolated ONE TREND

 

[Dentalfloss]

premarket preparation...that is all you can do
mark the areas ..so you know where to expect signals

A basic p/f buy signal occurs when a column of "X"s rise above a previous column of "X"s

A basic p/f sell signal occurs when a column of "O"s falls below the previous column of "O"s

then filter the signals

 

[Dentalfloss]

1 min candle always shows breakout areas
price all most always pullsback before breakout..it is within that pullback where you want to take positions

 

[Dentalfloss]

1 min candle always shows breakout areas
price all most always pullsback before breakout..it is within that pullback where you want to take positions

there we are not reliant on levels

 

[Dentalfloss]

breakout area show up nicely..no need for p/f

 

[MichaelJohnFX]

Morning all.

Looks like dax wants to pop to the 10300s

 

[Dentalfloss]

ftse for swissy

 

[Dentalfloss]

1 min candle always shows breakout areas
price all most always pullsback before breakout..it is within that pullback where you want to take positions

its within the pullback is where you do the work

on pullback...there is always a minor trend..which is against the main trend
wait for that to blow off
price starts to reverse and then consecutive signals...you can pick that up with a sloping trendline...which goes with the main trend
then...you are watching hard for continuation
minor supp/rez should hold to maintain the trend
that is all you can do
you want to get in on the deepest part of the pullback..that keeps the stops tight and potential higher reward

 

[Moneylender]

its within the pullback is where you do the work

on pullback...there is always a minor trend..which is against the main trend
wait for that to blow off
price starts to reverse and then consecutive signals...you can pick that up with a sloping trendline...which goes with the main trend
then...you are watching hard for continuation
minor supp/rez should hold to maintain the trend
that is all you can do
you want to get in on the deepest part of the pullback..that keeps the stops tight and potential higher reward

Excellent stuff, all good advice.

 

[Dentalfloss]

ftse in a pivot area

 

[Moneylender]

Got a quickie there from 10221 and out with 15.

 

[Dentalfloss]

** EVENTS PREVIEW **
********************

Today belongs to the Bank of England's MPC policy decision and Q3 Inflation report. The rest of the statistical and event schedule is at best minimalist, featuring the overnight Australia Retail Sales ahead of US weekly jobless claims and Factory Orders, while the Czech National Bank is seen keeping policy settings on hold, there is some more Fed speak from Mr Kaplan, the ECB publishes its Economic Bulletin, and France and Spain hold their last govt bond auctions before the summer holiday break.

** U.K. - MPC meeting / Q3 Inflation Report **
- Weale's volte face following the PMIs (doubtless exacerbated by the GfK Consumer Confidence) has markets fully discounting a 25 bps rate cut today, as can be seen in the attached table. Unsurprisingly this is also the survey consensus, with one call for unchanged and a few forecasters seeing a larger cut to 0.1% or 0.0%. As for QE, the majority expect no change at this meeting, though there are sizeable minorities calling for a £50 Bln or even £75 Bln increase. For all the hyperbole surrounding the PMIs and how they supposedly make a clear case for easing, this is incorrect. They are a) inherently volatile, and have frequently given an incorrect steer on the UK economy; b) they are diffusion indices, and as such overstate shifts in sentiment; c) they are unsurprisingly weak given the fact that none of the political actors on either side of the debate ever had any contingency plans for what to do in the event of Brexit, which can only be described as the very peak of irresponsible fecklessness. But just as in July, and above all in the context of the BoE's own regional agents reports, there is little for the MPC to make a proper assessment of the economic fall-out, and it will take a few months for this to become a little clearer. In terms of the benefits to the real economy of a rate cut of 25 bps or even 50 bps these are likely to be minimal, other than creating a likely modest amount of demand destruction among savers, though nothing on the scale of Germany/ Eurozone, let alone Japan. It should be self-evident that the monetary policy transmission mechanism in the developed world has long broken down. A cut to the zero bound would more than likely do a lot of damage to 'challenger banks' and smaller building societies, which hardly seems a price worth paying when the larger UK banks hardly came out smelling of roses in last week's EBA stress tests. However Mr Carney, Mr Haldane and the July MPC minutes have painted the BoE into corner with regard to taking action at this meeting, and with a 25 bps move fully discounted, no rate cut would be a severe jolt to the UK rate curve, which would amount to adding insult to injury. As for some variation on a targeted FLS scheme, which would (as before) likely be far more effective than more QE, which would be poison for the Gilt market, and above all pension funds, there is clearly insufficient evidence as to where it should be directed. It is all very well for Mr Haldane to talk about hitting a nut with a sledgehammer, but if it is unclear which but needs to be hit, then one is indulging in a game of blindman's buff. In terms of the BoE's forecast update, it will be interesting to see what comes up with, though the caveat is very clearly that the BoE's forecasting record is very poor, though in central bank and IMF terms, membership of the club is anything but exclusive. In terms of Gilt and/or Corporate bond QE, a) given the diabolical state of liquidity in the Gilt market, and Mr Hammond's assertion that fiscal policy can or will be reset at the Autumn Statement, it would be better to wait until these plans much clearer. Eminently this would obviously amount to nothing more than outright monetary financing, but markets and central banks have long moved into this territory, whatever their protestations. b) The GBP corporate bond market may be somewhat larger than at the time of the last BoE corporate bond buying fiasco, but it is anything but liquid, and again the real benefits, outside of the beleaguered property fund sector (cf. aforementioned moral hazard), look to be very debatable, at best, and all it would likely achieve is further income destruction, and bubble like conditions in credit markets.

I still stand by the comments I made in this interview ahead of the last MPC meeting -" Rationale for BOE rate cut is lacking, more QE would be a poison" https://www.youtube.com/watch?v=1x805Q7cgIo&feature=youtu.be

from Marc Ostwald

 

[Dentalfloss]

decent break from 10220 area
10230 held as supp
excellent

 

[Dentalfloss]

our pivot area held on ftse..for swissy

 

[Dentalfloss]

dow updated
our supp area held/aqua and we bounced
now in rez
lets see how it gets handled

 

[Dentalfloss]

18360-18400
is rez area
red and purple lines
watch the p/b..bulls will want to keep it above 18300

 

[Dentalfloss]

cable
testing a pivot

needs to stay above 1.3200/green trendline