DislikedHi all I have read the manual 3 times and have read this thread concerning 10.2. It looks really good. I will be doing my backtest.
I have a question to NNbob. I notice sometimes that your direction bias comes from the news. I know there are no formulas to quantify how you interpret the news to form your bias. So could you give a headstart on what you look for when you read the news and how it relates to the trend properties of a certain pair.
Thanks!
PS: Congratulations on your daughter's success! You sound like a very good father too her. ...Ignored
Fundamentals will affect a currency move for days, weeks, even months at at time. For example interest rate changes can affect a currency pair for months. When the Aud raised its rates and became the highest interest rate among major countries, people will deposit their money there thereby strengthening the currency We have seen months of rising value of the AUD. However, now that China's economy has slowed down some they have had to cut interest rates and it has started a decline that has gone for about 6 weeks now. That is a fundamental.
Another fundamental is govt/bank action to support or depreciate a currency. For example the CHF bank has sworn to defend the 1.20 line on the eur/chf pair. It would be foolish to do a sell in that area knowing that the bank is going to support that price and not let the price go down. So no matter what an indicator or news story is doing the SNB is the big fundamental playing on that pair. Because of this price action is almost non-existent ranging within an 90 pip range for almost 2 months now. You could go to the 5M chart and pick off 10-15 pip pops all day long on a set of BB.
So trading the higher end charts news stories affect overall price very little but you do want to keep an eye on fundamentals there. The basic assumption of my system is the monthly pivot will show you a fundamental in action without you knowing the actual fundamental.