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Catching the Big Moves.... Print
Written by Site admin   

 A couple of weeks ago I spoke at Round-the-Clock-Trader about “How to catch the BIG moves in just 20 minutes a day...”. You can view the full recording of the webinar here.

The talk was based on the two main techniques I use in my trading - The trend following and reversal finding process from the Twenty Minute Extreme Swing Trader and the Fibonacci based, Harmonic Wave Trader. The chart shows these two methods in action, read on....

The CHFJPY Forex pair frequently bursts into strong momentum runs. Last week it broke down into one of these runs and away from a struggling attempt to get back into its old up trend.

TMEST has a simple trend-following process that showed us a likely trend change at the low of the 14th July. This was aided by the auto Fib Finder picking a potential top (the dotted lines at the high).

The struggling recovery attempt failed at the 61.8% fib, resulting in a multi point reversal that was confirmed with price bars dropping below previously bullish candles. The 2.618 Fib suggests this excellent 265 pip move may be ready to pause.

 

From the blog

Next Wednesday, up they go again...

The consensus is the Federal Reserve, at it's June FOMC meeting Wednesday 13th, will confirm the next US interest rate increase, from 1.75 to 2%:

The consensus, 'dot' plot and forward guidance is as plain as day. But, today, the bond market just had a hissy fit...

The standard 30 year US T Bond has been tumbling down this year. Interest rates do the opposite of course, moving on up as bonds slide. But just look at the chart. The chart bottomed on May 18th, rallied then tumbled again, until today, June 7th.

The 4 hour chart shows a major key revesal day, lower early in the day then higher than yesterday. Key reversals (or the candle version, Bullish Engulfing) are one of the strongest one day signals in the market.

What does this mean?

Maybe nothing more than traders liquidating their previous short position profits, just in case something unexpected comes out of the Fed minutes.

Or - the market just got the idea the Fed will change it's mind and delay the increase. The dollar will tank and stock markets will soar even higher. Stranger things have happened, just when everyone least expect it.

 

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