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To Trade or Not to Trade
To view our Forex Video Trend Trading Map go to: [url]http://brewer.acrobat.com/p85663250/[/url] I'm always pleased when I'm in the minority when it comes to trading questions. So while many strategists last week were talking about "not" trading because of volatility, I was whole heartedly in disagreement. Last week we actually saw very attractive trending action on the short-term charts as the 60 and 240 mnute time frames alligned. The weeks and month before we saw the best kind of trend trading as the Monthly -Weekly --Daily trends came together. These last two days however the trends on the different time frames have really gotten tangled up making for what I see as sloppy counter-trend trade. GBPUSD is a great example of this as it nears long-term resistance above with the long term trends on the Daily & 240 minute charts still lower, giving us an inside candle yesterday, while the short-term trends, that day to day traders work from, getting all tangled up and going flat. See GBPUSD charts below. Counter-trend traders however may see things differently on the short-term as lagging indicators like Bollinger Bands, and moving averages, and using previous days highs and lows as support and resitance start to work again. For trend traders, we can either adjust to counter-trending tactics, or drop down to still shorter-time frames to trade, or perhaps the best remedy, not trade until we see current trends line up again. As traders we need to always remember to use the proper tool for the job at hand. And to remember to listen to what the market is telling us, more so than to talking heads and market analysts. [url]www.brewerfx.com/jnorrisedu/[/url] DISCLAIMER: Futures, options and Forex (off-exchange foreign currency futures and options, or “FX”) trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, options and Forex may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. In no event should the content of this correspondence be construed as an express or implied promise, guarantee or implication by or from Brewer Futures Group, LLC, Brewer Investment Group, LLC, and/or its subsidiaries and affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Past results are no indication of future performance. Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted. All securities are offered through Brewer Financial Services, LLC, member FINRA/SIPC.
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