Showing posts with label forex. Show all posts
Showing posts with label forex. Show all posts

Monday, September 23, 2013

Computer Glitch Strikes Again! + Monday Updates

On September 9th the U.S. Government auctioned Treasury Bills via the normal procedure whereby banks enter multibillion-dollar orders via the New York Federal Reserve’s computer systems to participate.  Unfortunately, Goldman Sachs was again at the center of a ‘glitch’, which had the NY Fed blocking their order. Now, I don t feel sorry for Goldman Sachs, but what does concern me is the larger implication of how one investment bank can impact the entire global treasury market.  The Treasury department did not release many details about how or what happened stating only that it suffered “a technical issue that prevented one bidder from participating in the 3-month auction.  The ‘glitch’ is the latest in a growing string of technical problems in the U.S. financial markets which creates additional mistrust amongst traders and investors that are frankly getting tired of wondering what’s next.  It would seem that after the “greedy” humans and malfunctioning computers t

http://www.indicatorwarehouse.com/96676/computer-glitch-strikes-again-monday-updates/

Optimizing Profit and Stop Loss Targets

How to Optimize Your Profit (and Stop Loss) Targets by Erich Senft, CTA Don’t you hate it when you take profit on a trade and the market continues on a lot further without you? That’s almost as good as getting tagged on your stop loss only to watch the market reverse and head to your intended profit target (and maybe continue past it!) What’s going on? Why is it so difficult to make set efficient profit and stop loss targets? The problem originates with the assumption that the markets never change, and of course that is a bad assumption. The markets are constantly changing, expanding and contracting to reflect what is currently going on in the marketplace. Just understanding that the markets are in constant flux will better equip you to take advantage of what the market is giving (or not giving) and allow you to set effect profit and stop loss targets. How do you do that? The first thing you need to consider is the market’s Average Daily Range, or ADR. Notice that the Average

http://www.indicatorwarehouse.com/96671/optimizing-profit-and-stop-loss-targets/

Sunday, September 22, 2013

Big Weekend Edition for September 22, 2013

I don’t know how I managed it. I’m not even over my first summer cold, you know the one with the annoying cough that has been plaguing me for the last couple of months, and now I’ve picked up yet another cold! I guess this one is going to be my “fall” cold. So here I am with sniffles, aches and pains and a runny nose, coupled with my annoying cough. Sounds like a commercial for a cold medicine doesn’t it? I’m tired of it. Thank goodness it’s only “annoying”. I’d hate to be really sick! I hope I get over it soon. I’m supposed to drive friends to the airport on Tuesday as they depart for their trip to Italy. They wouldn’t be too happy with me if I passed on a cold as a bon voyage gift! I’m sure I’ll feel better by then though. A couple more hot rum toddy’s and I’ll be good as new. Enjoy this week’s issue, Erich erich@supportandresistance.com Papertrades Currencies Market Overview Australian Dollar The AD hit “retracement mode” just shy of our firs

http://www.supportandresistance.com/tradingblog/big-weekend-edition-september-22-2013.html

Thursday, September 19, 2013

Inside Day as the Focus Turns to Triple Witching Expiration Friday

The focus on Thursday turned quickly from follow through “FED” buying to position squaring ahead of tomorrow’s triple witching expiration.  New highs were rejected early producing more of an inside day with volatility traders also adjusting positions as many September positions expire throughout the trading day on Friday.  Volatility Indexes The volatility quickly evaporated on Wednesday after Bernanke’s statements as many were caught “off guard” by the FED Chair announcing no tapering yet.  Thursday’s trade initially was again in the direction of crushing volatility with volatility indexes sinking.  The VIX is again teetering just above the 13 level.  As a directional indicator, the VIX is based on the prices (real-time) of options on the SPX listed on the CBOE.  The future is designed to reflect traders’ consensus view of expected market volatility 30-days out.  As a gage of market complacency or market fear the VIX moves higher during periods of uncertainty a

http://www.indicatorwarehouse.com/96634/inside-day-as-the-focus-turns-to-triple-witching-expiration-friday/

How Much Can I Make?? Goals and Planning When Trading

Hi Folks!! A question I have gotten quite often in my life when I work with various types of traders is what to expect with returns from trading.  The email usually sounds something like: Hi Omar!!  I was wondering if you could share with me how much you are making per month (either in $$ s or %) so I can know what to expect for myself After getting over the initial shock that someone would ask something so personal, I started to try to figure out how to best answer this question.  I have no problem being open and honest about anything, but I have certain sensibilities which usually prevent me from sharing every detail of my life indiscriminately.  But I realized that even if I simply told each of these people asking the numbers, it would not help their trading one bit.  Why??  Because everyone s experience is different!! Day trading is not like a regular career choice or job.  There are no guarantees for success overall and it s got such a wide range of results people find fro

http://www.indicatorwarehouse.com/96259/how-much-can-i-make-goals-and-planning-when-trading/

Wednesday, September 18, 2013

Ain’t Technology Grand??? DTS Forex Live Sessions Issue Update!!

Survey Says… New Highs for DJIA, S&P 500, and Russell 2000

The markets put in a stellar “Billy Graham” rally after the FED announcement on Wednesday.  Equities, treasuries, precious metals, and many commodities all surged higher as the U.S. Dollar plummeted.   Billy Graham rally or sell-off is a term I use to describe a situation when equities, treasuries, precious metals, and commodities all go in the same direction while the U.S. Dollar moves in the opposite direction.  Frequently the same underlying reason will be in opposite corners as to the “why”?

http://www.indicatorwarehouse.com/96615/survey-says-new-highs-for-djia-sp-500-and-russell-2000/

[Video] Back-Testing for the New York Open Trade for the Eagle Trend Trader

Do you ever notice how the market tends to move a certain way at a certain time of the day?  I do!  For years I stayed away from the open for at least the first half hour of every day and for years I missed out on some pretty great moves, with DTS, this has now changed for me.  In this video, I will demonstrate how I back tested the NQ (NASDAQ) at the 9:30 New York Open with precision, accuracy, and very little time to discover a great DTS trade that I’m sure after YOU test it, you will believe. The rules are simple, the only addition to DTS is the time and to learn a simple pattern.  I only take this trade between 9:30 a.m. E.S.T., and I will give it up to 30 minutes to “make its move”.  Enjoy the video and look for more to come for the Hawk and Falcon as well.  Don’t take my word for it, check it out, test it out, and decide for yourself.

http://www.indicatorwarehouse.com/96590/rays-back-testing-for-the-new-york-open-trade-for-the-eagle-trend-trader/

Tuesday, September 17, 2013

Facebook The New Market Leader?

There are times when I just sit back and watch what motivates traders.  Today was one of those days.  A few months back I read where there was a pattern (self fulfilling) where traders bought on Tuesday because the markets move higher.  I remember thinking how ignorant can that be – but the reality is that it has continued to happen.  Aren t the markets more sophisticated than that?  Don t analysts spend hours and days pouring over numbers and charts to determine value and what the next move will be?  I guess not – so again, I reiterate when a market moves in either direction based on emotion rather than fundamentals it is very likely a “sucker” move or in Elliott terms a “B” wave.  Remember computers don t have emotions the function within the parameters of the program running and until those parameters change don t expect the market gyrations to make economic or financial sense.  Despite the total breakdown in Facebook on Monday, traders returned on Tuesday to

http://www.indicatorwarehouse.com/96584/96584/

Trading Options Using DTS – Part Four – Managing Winners – High Volatility Strategies

Strategies Employed In Using Volatility to Your Advantage The Iron Condor An Iron Condor is a defined risk options trade, which as a strategy can be highly effective in taking advantage of period of high premium.  Volatility is a major factor in deciding to use this strategy.  As a general rule Iron Condors are employed when volatility is high.  As volatility increases you can widen the strikes, which will improve your probability of profit.   Selecting which strike prices to use is an important factor in successfully trading an Iron Condor.  Since, Iron Condors are used when volatility is high, and the objective of the trade is to collect premium you would always be a “seller” of the Iron Condor.  Selling an Iron Condor is the simultaneous selling of a call spread and a put spread.  When volatility is “rich” look to the strike prices that allow you to collect premium that adds up to at least one third of the width of the strike prices.  For example on a five dollar w

http://www.indicatorwarehouse.com/96555/trading-options-using-dts-part-four-managing-winners-high-volatility-strategies/