Archive for the ‘currency trading strategy’ Category
The Positive Results Of Non Farm PayRoll
I wasn’t really following the chart last, the week of the Non farm payroll of Dec 2009. Most of the currency pairs had a big reversal candle i.e a pin bar, in the previous week. The biggest was in GBP-JPY. So before the announcement of the non-farm payroll values, the currencies were either bullish or bearish, depending on the pin bar that formed. For the GBPJPY, it was already bullish that week.
The NFP (non-farm payroll) showed the the unemployment rate decreased in America. It went from 10.2% to 10%. This is dollar bullish. Since the values of the NFP were positive, GBPJPY went higher. The market never lies. I believe it already had a hint that the NFP would be bullish, that was why it showed a daily pin bar in the previous week.
For now, GBPJPY has almost given back what it gained. It is down. this is a chart of it now.
Trading Forex During Summer Holiday Period
Currency trading is a game that needs someone to have a strategy. Without a startegy, you are bound to fail because that means that you are trading on your emotions. And to know if you have a profitable strategy, you need to test it in the market live. Not all strategy work almost in the foreign currency market. Some strategy are conducive during sideways market i.e. when the market has no clear trend, while other work during a one sided market i.e. either bullish or bearish.
Summer period is usually the time when the market is ranging. This is because most banks and hedge fund managers are on their vacations. They are either enjoying their sweat or they are rethinking their strategy for the next trading period. Since these traders are not there, there are not enough traders that can force a trend to show.
For instance look at GBPJPY, since yesterday, i.e Sept 1st, it has been ranging. I cannot believe that. GBPJPY is a volatile currency pair. Its daily range is about 300 pips, but it moved about 150 pips yesterday. This means that a new trend is developing. I believe the trend is up since the world’s economy is sloly improving. But the question is when will the developing trend become visible? This is a question that only few people have an answer to.
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