Fundamentals keep screwing my purely Technical strategy

If you have reasonable targets, and you have positive pips less than your 75 before the news, its generally better to close the position and re-enter trade after the news event.

I am lost here; please what do you mean by +1 Green box?

it was just a joke with twinchell having nothing to do with forex, sorry for the confusion

merry xmas
mike

This time of year is a mess, I'm going to backstudy it and see if it's always this way...

What we have going on in my flawed, B.S. analysis is this:

1. Most Western traders are away for holidays thus allowing the Asians to control the market.

2. Major banks are closing their annual books thus getting out of every position they're holding in order to book profits and look good to their shareholders.

This seems to be a bad time to be trading based on past data, especially intra-day, and a good time to look for breakouts on the daily charts after the first of the year.

I'm seeing every technical method I've ever been exposed to squeeze itself really tight, looking to go one way or another but not knowing which way to go. This is a hard time to trade, and I think I'm going to wait until January to continue. Things make no sense right now, and I think the reasons I enumerated before explain why...

Hey Jmbtx

If you are up 30 pips get out. The spikes are too unpredicatable.
the big boys are sweeping the money off the table. Rumor has it also that many brokers are taking the opposite side of your trade. NOt sure if that is true or not. But I can imagine it.

Technical analysis won't work because there is a time lag between when you receive the data and completing your analysis on the spike.

Some others have posted waiting a time period of 10-15-30 minutes for confirmation.

Also the holidays have been very erratic. I heard from one seasoned trader that a lot of the locals and major traders start to shut it down after Thanksgiving.

So the major movers are not there. Thus "we" the little guys are fighting it out among ourselves. The market starts to bracket and charting the trend doesn't work.

Comments anyone.

Blueray1957
Grace is my sufficiency

TA do not believe that everything is factored in price. Effective market hypothesis believs in that. Nor does TA believes that it is possible to predict future from the past. TA only believes that there there are certain factors (psychology, motivation of participants) behind market movements which will affect price changes in the future as well. Since fundametals easily overwhelm lets say "technical factors" it is possible that fundamets can screw technical strategy.

But this was not reflected on the chart when the market opened today, 12/26. Does anybody have an idea of why? I was of the opinion that trades that are open at close of the market on Friday will still be trading although no new trades can be entered or closed. Any thoughts?

I guess the books Ive read are wrong.

The whole basis of a purely technical analysis revolves around past price and trading action. Are you suggesting that chartists do not use the past?

Here is one books take on TA:

"Technical analysts study the action of the market itself rather than the goods in which the market deals. The technical analyst believes that "the market is always correct." In other words, rather than trying to consider all the factors that will influence the demand for Gadget International's newest electronic gadget and all the items that will influence the company's cost and supply curve to determine an outlook for the stock's price, the technical analyst believes that all of these factors are already factored into the demand and supply curves and, thus, the price of the company's stock."

I guess the author is an idiot, but I tend to agree with him, so I must, in turn, be an idiot as well.

They definitely do. TA chartists do use past. But in different manner then many people think. That is what I suggest.