[Anna-Maria]

Wouldn't disagree with that comment torero. Not that I trade any other instruments apart from currencies, but patience sure ranks high on the pre-requisites when trading these things!

That + finding a couple key (repetative) behavioural assistors

Same old, same old huh?

[torero]

I have a question, it looks like Cable is stalling below 9000. It still shows higher lows but the Euro is showing lower highs, divergence. In your experience, do Cable and EURUSD correlate well or not?

[Anna-Maria]

They generally move in tandem to one another, as the attached correlation graph highlights.

Occasionally, if one is experiencing some flak at a keen technical level or maybe awaiting an item of (specific) Fundamental importance, it will step out of line.

But in the main, they're pretty much bosom buddies as far as directional bias is concerned.

Again, from an intraday perspective, Cable is the 'sprinter' as far as range extension goes, with Euro playing catch-up....but then, that's no surprise given it's volatility attraction.

[Anna-Maria]

Our brother usually keeps tabs on the intra-session/week/month volatility numbers, but to be honest most of the info can be derived by careful (daily) record keeping.

However, again it highlights the % balance between the majors & one of the methods we use to re-configer our intraday R1-2 & S1-2 levels.

Usually, unless they step wildly out of synch, we'll keep them to the avg 35 & 50% guides on the Cable/Euro...but now & again, he'll update the range extreme percentages to give price a little more breathing space.

The 2006 numbers have yet to be calc'd on the weekly range extremes etc, but we don't expect them them to be much out of line on the 2005 numbers.

The intraday pip range figures further confirms the increased pace in which Cable travels over & above it's fellow major pairs.

[torero]

Excellent analysis, tex! This will be very useful for me down the road.

I finally closed out my long position waiting almost the entire day for it come back to 9000 to hit my target. Forex requires more sitting on one's hand more than any other instruments I've traded up til now. This is a really good test to the daytrader.

[torero]

I used to hear a claim that during the holidays in US, the Cable and Euro tend to run away a bit, is this true, tex?

[Anna-Maria]

Yes, it's certainly borne true on a number of occasions torero. It sure pay's to observe prices & react accordingly if they either continue to 'trend' or set-up a reverse/pullback opportunity on or around a Big Figure.

Reduced liquidity is sometimes a double-edged sword, certainly where currencies are concerned.

Although NY will be sidelined, & the London flows will also be light, these conditions can occasionally work to the advantage of traders. Like anything else, if opportunity exists according to your trade template/plans, then as long as appropriate risks are considered & strictly adhered to, it's 'good to go'

[Anna-Maria]

Originally Posted by texxas »

I prefer to focus & manage the Franc trade from Friday, which has mirrored Cables move thru the consolidation barrier to test the 1.24 Big Figure.

Remaining stops can now be re-adjusted down to sit above Friday's lower range barrier @ 2460 to check any return move back into the range.

Update on this Franc trade:

I've trailed our stops down at lunchtime (London) to sit at the 1.2360 zone after this next leg shunt down, locking in a bit more profit. Price never traded thru the stop line at all this week, & never really looked like shaking out the shorts from last Friday.

Next line (Daily) s&r zones are now in focus, which we'll attempt to trade in line with appropriate management. It's often a "trade-off" as to whether the stops require slight upward/downward adjustment once a move gets under way, but compounding (& paring out) back in allows a potential move to soak up any extra fee's, whilst capitalizing on an aggressive trend run.

Anyhow, we'll see how much farther this run takes us!