Busy Day Tomorrow

[cowpip]

Hey Sledge... you should be patted on the back for your questions. You aren't only learning yourself, but you're allowing a whole lot of other people to learn as well. That's a big deal. No serious question is too silly or dumb to ask. None.

[Sledge]

Ha Ha Ok ok, I need to expand my horizons, I get it

Well I may be at a great place to do just that. I have been utilizing the GBP/USD as my currency pair of choice almost exclusively for about 6 months. Maybe it is time to see what else is out there- beyond this 2 star town.

Cowpip:
Thanks, as I have been always told- the only stupid question is the one not asked! Thanks for the support!

Aaron

[torero]

Hi sledge,

It's good to concentrate on one to get a feel for it, that's how I started with GBPUSD. Little by little I started studying a few others, but I limit myself to 3-4 for now, anymore might be overkill for one trader. But I monitor up to 8 pairs to see if the moves are legit (support from other pairs).

[cowpip]

	Quote:	torero
	Hi sledge, It's good to concentrate on one to get a feel for it, that's how I started with GBPUSD. Little by little I started studying a few others, but I limit myself to 3-4 for now, anymore might be overkill for one trader. But I monitor up to 8 pairs to see if the moves are legit (support from other pairs).

Focusing on one pair - preferably a major (especially when you first get started in forex) is a good idea. I too focused on cable when I first started. I believe once you know one pairs' personality, it's generally not as difficult to learn the personality of others.

There are a lot of ponds to fish in. There's almost always one or two pairs that provide decent setups during the course of a week (depending on your strat and the time-frame you play). No sense over stressing your brain, or your account.

[Sledge]

	Quote:	torero
	Hi sledge, It's good to concentrate on one to get a feel for it, that's how I started with GBP/USD. Little by little I started studying a few others, but I limit myself to 3-4 for now, anymore might be overkill for one trader. But I monitor up to 8 pairs to see if the moves are legit (support from other pairs).

Torero-
Yes sir, this is why I concentrate on the one pair. When I started in this currency trading world, I tried to trade everything and anything (but I was also trying to scalp 20-25 times a day too) And you know what- this will test my patience to see if I can just stay put unless I see what I need to see.

Speaking of this AM, I saw a very nice low volume test on a 30 min chart, closed on the high, utilized that as my entry. Not a huge play, but went Long at 1.9696 and at last ticker check- it was sitting at 1.9721. When I get home from the day JOB I'll give it a nice analysis and see where we sit.

Sledge

[Sledge]

A Few more questions if I may pose to the group: Obviously I tend to focus on one pair (for now ) but hopefully the questions are broad enough to encompass all currency pairs or other instruments:

1. Right now we see the GBP/USD break out a bit to the downside. At least it broke out of the wedge that it was forming. But it isn't with much conviction. As an example last night (Say 10:00 EST) looking into the background you saw this phenomenon of testing bars, you then saw it creep up with waning volume and little "upthrusts" (bars peaking up and closing on the low) it was a fairly strong sign of more downside to come, but my question is that about 50 pips prior on the downside signals you saw BUYING bars (Bars testing and closing on the middle or highs.)

So the question is this- any way to tell a difference between a concerted "markdown" by big money vs. a true breakout? This last evening scenario is playing out to be a markdown, but with obvious signs of buying and selling- it is into gray area once again as to whether this pair is prick-teasing the possibility of heading north again OR going to the basement as the retail trader world seems to be touting (which I think is a load of crap personally)

Thanks all!
Sledge

[milliard]

As far as Cable goes, I wouldn’t pay a whole lot of attention to activity at 10.00pm EST if I were you. Most of the serious business on that instrument is transacted during London & New York. Tokyo desks might bat it around a little if the cross (GBPJPY) is attracting heat, but any price analysis based around that shifts activity is a waste of time.

Again, as far as your specific price radar goes (vsa or volume prints etc) I guess you’re simply going to have to act according to the rules & regulations of your chosen price aids & what they tell you.

We don’t recognize it or trade according to that stuff, nor subscribe to volume on the cash – so it’s off our radar.

Anna-Maria mentioned in a recent post on here she was waiting for either 9960 to the topside or 9600 to the downside to creak before she climbed aboard that horse, & that’s what she did y’day morning (courtesy of the pullback opp).

If you were looking at it via the intradays, then I guess you got a lead in around 9625-30 off the 15m graph on Wednesday morning (London).

Whether it chooses to truck on down to next line support at the 9400 will depend on the strength of the participation. Big money, smart money or any other kind of money is irrelevant. If Sterling fundamentals dictate sufficient supply exists, it’ll pump. If not, trailing stops will take care of business.

Sterling weakness has reared up again (check your Sterling pairs), therefore the value is to the short side on Cable if you’re touting it.

Until it spins out or tells her otherwise, she’ll look to aggressively compound the short side of Sterling.

[Sledge]

Milliard-
Thanks again for your insight. I keep forgetting to let that "NY Close to European Session Open" timeframe carry less weight than the NY or London session tallies. Something I must begin to work on and remember.

Most appreciated!
Aaron

[Sledge]

Milliard-
Question on Futures (taking your advice on looking at them vs. spot)

What is the difference between:
British Pound (E) (B6M8)
British Pound (BPM8)

Or Say:
Euro FX (ECM8)
Euro FX (E) (E6M8)

Thanks!
Aaron

[Anna-Maria]

They're all out the door & headed for the beer garden Aaron on this (rare) spell of hot & sunny & British weather!!

I think you'll find those pre-fixes simply relate to the month of the specific contract; ie....BPM8 signifies the June contract on the Pound, B6U8 the forward Sept contract.

Same on EU: E6M8, the June & E6U8 the Sept contract.

We don't trade the Futures, so any in-depth info regards that side of the fence will have to come from other members who maybe trade them?!