[Anna-Maria]

I forgot to post this yesterday whilst we were discussing inside/outside bars, and although this thread is geared towards Cable commentary, I wanted to highlight the positives of observing other instruments when looking for specific set ups.

Inside bars have been relatively scarse on Cable of late, but on it's European cousin (Euro), the opp's have been plentiful past couple months.

It's worth noting, many of the better risk opportunities occur as & when price approaches & prints these bars on the Round or Big Figures.

I don't think I need to point out the psychological relevance of these levels, the price activity normally speaks for itself, but good success is consistanly available on & around the Big Numbers.

By drilling down into the smaller timeframes as these Daily bars set up, allows tighter & more manageable risk/stop placements.

They're a pretty cool indication of increasing "stand-off" or hesitation at these levels, & you'll often witness 1 & 4hr neutral bar formations taking place, further assisting in managing an effective entry/pare/exit scenario.

Anyhow, hope it helps to maybe encourage closer focus of the Daily bar prints, especially as price ambles towards these key levels.

[Anna-Maria]

Well, what was turning out to be a dire couple days, sparked into life dramatically on the print of the horrendous Housing Numbers.

That really was a shocker & spooked the short-term ($) longs big style. It brings the focus of reduced Interest Rates back onto the front burner & raised fears the Housing downturn could knock onto the general economy.

I wasn't looking at the Cable as NY hit the desks, preferring to turn my/our attention to the Franc instead. It was cranking back towards our favorite 78.6% Fibo line on the hourlies from the recent 2575-2355 decline.

To be honest, it wasn't such a big deal to get aboard any of the pairs after the numbers printed. They all offered a leisurely entry & simply edged away hansomely.

Hope folks were able to take advantage of the late week bonus!!....cause it's sure been scrappy since Wed.

[torero]

I wasn't expecting the big move either although the base was curling around in the 8855 area so I thought something was up. I pretty ignored the rest though since I dind't even see a pullback to get in comfortably. Next week!

I must say that I've learned more last 2 weeks about forex than I have the entire last year, thanks to Raul's and your insight!

[Anna-Maria]

Glad you're finding the info helpful

There's really nothing much different to trading FX than other instrument classes. James trades the Index Futures via pure price action with the added assistance of market internals - which is a pretty sensible option.

Price action is price action, however you wish to interpret it. Sure, different investment vehicles attract slightly unique behavioural traits & react differently to their own internal market structure. But on the whole, if you possess a good understanding of how price behaves at specific junctures on the technical map, & how the "herd" might interpret that activity, then wrapping a workable strategy or two around the psychological cog of the markets becomes a tad easier.

It's merely a % game at the end of the day. If your strats are sufficiently robust & the risk-size management is well versed, then you have a little breathing space to work from when the market spoofs you every now & again!

I'm certain you, like other index traders on here, won't have too much trouble in adjusting to the ebb & flow of FX. If you can trade one asset class with relative success, it's merely a matter of familiarization & market behaviour awareness when transferring att'n across to another instrument vehicle!

[Anna-Maria]

ok, I'm gonna give your 'chart posting' explanation a whirl & see if I can upload these Swiss charts the way yo advised, to show the reasonings behind our choice to trade them rather than striking via Cable yesterday morning. If I mess up 1st time out, I'll re-post on the next message :rolleyes:

Right, we'll see how that pans out!!

(Hopefully) you'll see why we were paying att'n to Swiss at this level on Friday morning. We've already executed it twice recently as it moseyed back up the ladder towards the 78% decision zone.

Like Cable, we've found Swiss displays pretty consistant behaviour on both intraday momentum plays as well as swing behaviour traits. Swiss has a high correlation to Euro, & stacks up well against Cable. If Cable is playing silly beggers around a scrappy s&r zone, we'll often turn our att'n across to Swiss, especially if it's in the vicinity of one of our 'watch zones' - which this pair was y'day.

Not surprisingly, these types of entry criteria allow good r/r bias & offer decent risk/stop placement in the event of it turning ugly. Both from an intraday standpoint as well as a swing potential move.

This now affords us a two-pronged benefit....decent pare out to book intraday profit + compound positioning for the possibility of continued swing movement in the direction of the prevailing trend!

[Anna-Maria]

Ohh...something didn't quite work out as it should have there?! Maybe James or you torero, can let me know what went wrong on that attempt?

I was thining, maybe we could initiate a fresh weekly thread for these FX ramblings?

It would keep the thread post count within sensible parameters, so that folks wouldn't have to plough thru page after page of continuous info?

Maybe kick each week off on a Sunday. And rather can header it as simply a "Cable" thread, I thought maybe logging each week by it's appropriate week number?....Like next weeks thread: Week 48?

That way, different pairs can be hauled up onto it by folks, & a variety of content can be viewed, keeping it all within one observation area?

Yeah, no??

[Soultrader]

Hi Texxas,

Sounds good to me Texxas. I should build a forum called Texxas

Can you try attaching the chart again? I looked into the attachment permissions of your account and everything seems to be working fine.

James

[Anna-Maria]

Hey James,

I've sussed out what was wrong - they've loaded ok now!

Cheers,

Anna-Maria.