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Auslanco - GBP/JPY and GBP/USD (newstrade)

  • #67,521
  • Mar 11, 2008 9:03pm Mar 11, 2008 9:03pm
Quoting markam
Every other action by the fed the last 6 months has failed miserably. This one will also. Plus the fed is rapidly using up its reserves, so pretty soon they will be reduced to begging for people to buy overpriced houses to prop up the economy.

Watching the japanese market last night, I knew this was coming, so I hedged my shorts right at the bottom. Now I am just waiting for the bulls to realize that once again they have run off a cliff thinking it was the stairway to heaven.
Hard to think any yen pair could go north with the Nikkei up 2.5% and Hang Seng up 1.25%. I guess maybe but it seems unlikely. Those Euro zone announcements better be POWERFUL tonight to see 213. :
  • #67,522
  • Mar 11, 2008 9:09pm Mar 11, 2008 9:09pm
  •  FxChi
  • | Joined Dec 2007 | Status: Cash Rules Everything Around Me | 749 Posts
I just started using the QQE indicator so I'm trying to learn and interpret how it moves.

I'm watching it on a 1 hr chart, and at the close of 1 hour it looked like the solid blue line was going to cross the dotted line. Then as the next hour proceeded, the 2 lines separated and didn't cross. However, at the close of the 1st hour, momentum 10 indicator had a sharp turn up.

Is the momentum indicator with the sharp turn up the reason for this indicator action?

Sorry if this has been covered in another thread as I'm still trying to absorb the massive amounts of quality Auslanco information on this thread.
"Wishful thinking dies hard." Igor T.
  • #67,523
  • Mar 11, 2008 9:16pm Mar 11, 2008 9:16pm
Quoting PipAV8tor
Hard to think any yen pair could go north with the Nikkei up 2.5% and Hang Seng up 1.25%. I guess maybe but it seems unlikely. Those Euro zone announcements better be POWERFUL tonight to see 213. :
Actually if the japanese stock market is bullish, the yen weakens. I call the yen the anti-currency, since it usually acts completely opposite of what a real currency should do.
  • #67,524
  • Mar 11, 2008 9:21pm Mar 11, 2008 9:21pm
Quoting markam
Actually if the japanese stock market is bullish, the yen weakens. I call the yen the anti-currency, since it usually acts completely opposite of what a real currency should do.
I could easily be wrong, but today was a fake out. Things have been moving the opposite of what they "should" for weeks. The yen is/should be stronger than the GBP and EURO, so if I had to guess, the yen seems more inclined to strengthen than weaken. I hope....
  • #67,525
  • Mar 11, 2008 9:33pm Mar 11, 2008 9:33pm
Quoting PipAV8tor
I could easily be wrong, but today was a fake out. Things have been moving the opposite of what they "should" for weeks. The yen is/should be stronger than the GBP and EURO, so if I had to guess, the yen seems more inclined to strengthen than weaken. I hope....
Just remember to trade what you "See" and not what you "Think".
  • #67,526
  • Mar 11, 2008 9:42pm Mar 11, 2008 9:42pm
Quoting txfx
Just remember to trade what you "See" and not what you "Think".
Very TRUE.
I'm just waiting to go short from a better point than I was before. We'll see if it develops. I'm ready to go long if it turns that way...
  • #67,527
  • Mar 11, 2008 11:36pm Mar 11, 2008 11:36pm
Quoting FxChi
I just started using the QQE indicator so I'm trying to learn and interpret how it moves.

I'm watching it on a 1 hr chart, and at the close of 1 hour it looked like the solid blue line was going to cross the dotted line. Then as the next hour proceeded, the 2 lines separated and didn't cross. However, at the close of the 1st hour, momentum 10 indicator had a sharp turn up.

Is the momentum indicator with the sharp turn up the reason for this indicator action?

Sorry if this has been covered in another thread as I'm still trying to absorb the massive amounts of quality Auslanco information on this thread.
Hi FxChi,

The 1hr QQE did come close to turning bearish, but didn't quite make it. It still could turn however, if price retraces further. It wouldn't take much at this point.

The momentum indicator doesn't have an effect on the QQE. The reason that the momentum changed at the new hour, is because a different candle was all of a sudden being compared with the current one. With a momentum setting of 10, the 10th candle "close" behind the current one is used for comparison purposes in the calculation. With a mo14, the 14th candle is used. With mo1, the previous candle "close" price is compared with current.
  • #67,528
  • Mar 11, 2008 11:52pm Mar 11, 2008 11:52pm
  •  FxChi
  • | Joined Dec 2007 | Status: Cash Rules Everything Around Me | 749 Posts
Hey thanks PIP Cruiser! I really appreciate it. Had no idea that's how momentum was being calculated. Very interesting...
"Wishful thinking dies hard." Igor T.
  • #67,529
  • Edited Mar 12, 2008 1:33am Mar 11, 2008 11:54pm | Edited Mar 12, 2008 1:33am
Quoting FxChi
Hey thanks PIP Cruiser! I really appreciate it. Had no idea that's how momentum was being calculated. Very interesting...
Here's a little something for you:

Making the Momentum Indicator Work for You

When analyzing markets I often use the term "momentum" when referring to the amount of strength the bulls or bears have at a given point in time. This market "momentum" is a key indicator regarding the strength of a trend, or whether a trend is about to end or begin.

When I worked as a market reporter on the trading floors of the Chicago Board of Trade and the Chicago Mercantile Exchange, I (as well the floor traders) had a very keen sense of which camp (bulls or bears) had momentum on their side. This was especially true in the grain pits at the Board of Trade. One obtained this keen awareness by being right on the trading floor, talking with all the market-makers who helped determine prices.

By examining charts, cycles, seasonality and other technical indicators-­and near-term fundamentals--one can also get a good reading on whether the bulls or the bears have the edge in any given market. However, I must admit that when trying to gauge market momentum there is no substitute for working right on the trading floor and talking face-to-face with the market-makers. But very few get that opportunity, so other tools have to be employed. One such technical tool is the Momentum indicator.

The Momentum indicator is a popular technical study. It is easy to calculate and can be applied in various ways. Momentum can be calculated by dividing the day’s closing price by the closing price "X" amount of days ago and then multiplying the quotient by 100.

The Momentum study is an oscillator-type that is used to interpret overbought/oversold markets. It assists in determining the pace at which price is rising or falling. This indicates whether a current trend is gaining or losing momentum, whether or not a market is overbought or oversold, and whether the trend is slowing down.

Momentum is calculated by computing the continuous difference between prices at fixed intervals. That difference is either a positive or negative value, which is plotted around a zero line. When momentum is above the zero line and rising, prices are increasing at an increasing rate. If momentum is above the zero line but is declining, prices are still increasing but at a decreasing rate.

The opposite is true when momentum falls below the zero line. If momentum is falling and is below the zero line, prices are decreasing at an increasing rate. With momentum below the zero line and rising, prices are still declining but at a decreasing rate.

The normal trading rule is: Buy when the momentum line crosses from below the zero line to above. Sell when the momentum line crosses from above the zero line to below. Another possibility is to establish bands at each extreme of the momentum line. Initiate or change positions when the indicator enters either of those zones. You could modify that rule to enter a position only when the indicator reaches the overbought or oversold zone and then exits that zone.

You specify the length of the momentum indicator. You must determine a value suitable to your trading needs and methods. Some technicians argue the length of the momentum indicator should equal the normal price cycle. The best method is to experiment with different lengths until you find the length that works best for that particular commodity you are trading.

Like most other "secondary" trading tools in my trading toolbox, I do not use the Momentum indicator, solely, to generate buy and sell signals, or to gauge the overall technical situation in a market. I use the Momentum indicator to help confirm or refute general ideas I have developed by using my "primary" trading tools, such as trend lines, chart patterns and fundamental analysis.

Jim Wyckoff
TradingEducation.com

Edit: Just so there's no misunderstanding, this is a quote from a web site, and not from me.

PC
  • #67,530
  • Mar 12, 2008 12:23am Mar 12, 2008 12:23am
Quoting markam
Every other action by the fed the last 6 months has failed miserably. This one will also. Plus the fed is rapidly using up its reserves, so pretty soon they will be reduced to begging for people to buy overpriced houses to prop up the economy.

Watching the japanese market last night, I knew this was coming, so I hedged my shorts right at the bottom. Now I am just waiting for the bulls to realize that once again they have run off a cliff thinking it was the stairway to heaven.
I am wondering if any buddy could help me how to adjust my MT4 timing from GMT-5 to GMT+5,which items should I change from the software?tks a lotele
  • #67,531
  • Mar 12, 2008 12:38am Mar 12, 2008 12:38am
  •  FxChi
  • | Joined Dec 2007 | Status: Cash Rules Everything Around Me | 749 Posts
Pip Cruiser - thanks again man! I honestly wasn't interpreting that indicator correctly. Was just looking at the slope of it and where it ticked at the opening of a new candle. Sweet man!!! Thanks for the knowledge!!

I mean right now, on G/J QQE is about to cross and Momentum 10 is sloping down and about to cross the 0 line. Based on that article bears should be showing up soon. Hmmmm...I wonder if there's any interpretation for the line trying to break below 0 and was immediately rejected.
"Wishful thinking dies hard." Igor T.
  • #67,532
  • Mar 12, 2008 12:43am Mar 12, 2008 12:43am
Quoting markam
Every other action by the fed the last 6 months has failed miserably. This one will also. Plus the fed is rapidly using up its reserves, so pretty soon they will be reduced to begging for people to buy overpriced houses to prop up the economy.

Watching the japanese market last night, I knew this was coming, so I hedged my shorts right at the bottom. Now I am just waiting for the bulls to realize that once again they have run off a cliff thinking it was the stairway to heaven.

here ya go markam! enjoy!


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  • #67,533
  • Mar 12, 2008 1:03am Mar 12, 2008 1:03am
Quoting FxChi
Pip Cruiser - thanks again man! I honestly wasn't interpreting that indicator correctly. Was just looking at the slope of it and where it ticked at the opening of a new candle. Sweet man!!! Thanks for the knowledge!!

I mean right now, on G/J QQE is about to cross and Momentum 10 is sloping down and about to cross the 0 line. Based on that article bears should be showing up soon. Hmmmm...I wonder if there's any interpretation for the line trying to break below 0 and was immediately rejected.
Well, to me it looked like things were holding on by a thread and could have turned either way. I always like to use momentum in conjunction with other indicators. If the 1H QQE had crossed down, and momementum pointed down at the same time, that would have suggested downward movement to me. And if the 1H QQE also dipped below the 50 line, that would have been even more evidence.

  • #67,534
  • Mar 12, 2008 1:08am Mar 12, 2008 1:08am
Quoting Pips_Cruiser
Well, to me it looked like things were holding on by a thread and could have turned either way. I always like to use momentum in conjunction with other indicators. If the 1H QQE had crossed down, and momementum pointed down at the same time, that would have suggested downward movement to me. And if the 1H QQE also dipped below the 50 line, that would have been even more evidence.

Here what is situation now, according to your word we are going up
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  • #67,535
  • Mar 12, 2008 1:12am Mar 12, 2008 1:12am
Quoting venci
Here what is situation now, according to your word we are going up
I see the 1H and 4H QQE's crossed bullish, so I am long.
  • #67,536
  • Mar 12, 2008 1:20am Mar 12, 2008 1:20am
Quoting Pips_Cruiser
I see the 1H and 4H QQE's crossed bullish, so I am long.
It's nice to have momentum on your side. But I don't base my trades on it. I would much rather see the QQE's lined up in the same direction. Next in terms of importance, I like to see price on the correct side of the Gann line. Looks like price is still trying to close above the 1H Gann. Once it does that, I'll feel even better about my long position.
  • #67,537
  • Mar 12, 2008 1:23am Mar 12, 2008 1:23am
Price Action on the Daily: DBLHC at a S/R level 207.00. Gann and QQE also pointing long.
Attached Image
Indicators show the past. Price Action "Indicates" the future.
  • #67,538
  • Mar 12, 2008 1:27am Mar 12, 2008 1:27am
Quoting jarroo
Price Action on the Daily: DBLHC at a S/R level 207.00. Gann and QQE also pointing long.
I like that, too!

  • #67,539
  • Mar 12, 2008 1:31am Mar 12, 2008 1:31am
Another thing about the Gann HiLo line, is that it initially tends to act as resistance. It usually takes price at least a couple tries to get through it. Sometimes it takes a pretty hard bounce off of it initially.
  • #67,540
  • Mar 12, 2008 1:33am Mar 12, 2008 1:33am
Quoting Pips_Cruiser
Another thing about the Gann HiLo line, is that it initially tends to act as resistance. It usually takes price at least a couple tries to get through it. Sometimes it takes a pretty hard bounce off of it initially.
That's true. I've observed the very same thing. It takes at least 2 attempts breaking it. Good morning all !
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