Trade what you see NOT what you expect

NY h4 closed indecisive.

That's interesting to read!

Where did you find this at?

So, how did everyone do today with such a tight range?

(DJ) =DJ 2nd UPDATE: EBS Platform Shutdown Disrupts Forex Trading

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(Updates with comments on share of foreign exchange trading on EBS.)

By Riva Froymovich
Of DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--Leading foreign exchange trading platform EBS Electronic Broking Services was temporarily shut down Thursday due to technical problems just as trading volumes were hitting peaks in the wake of rate cuts from two major central banks, the Bank of England the European Central Bank.
The trade disruption occurred as ECB President Jean-Claude Trichet was holding a keenly awaited press conference from which traders were hoping to glean more insights into the bank's stance on further policy easing.
EBS, owned by ICAP PLC (IAPLY), dominates foreign exchange trading. The problems meant traders were unable to confirm transactions on the trading platform, making it more difficult to execute orders, and leading ICAP to shut down the system for repairs.
ICAP itself says it has no accurate estimate of EBS's market share, but Martin D. D. Evans, professor of economics at Georgetown University in Washington, who focuses on currency markets, said about 60% to 70% of all euro-dollar and dollar-yen trade is conducted on the EBS platform.
The EBS disruption resulted in a drop in volumes and increased volatility in the foreign exchange market overall, currency traders said.
The dollar, for example, dropped a full yen, from Y99.25 at 9:05 a.m. EST, to Y98.25 a.m. EST in the space of seven minutes, on the EBS platform, then swung back up again to Y99.22 over the next five minutes.
There were also time lags of several minutes between each transaction in the dollar-yen and euro-dollar pairs as traders either had to use the Spot Matching system on Reuters PLC (RTRSY) or the internet-based trading platforms of market-making banks.
ICAP spokesman Mike Sheard said the disruption was due to "an ongoing issue caused by a network services provider."
The problems began around 9:00 a.m. EST, but by 10:30 a.m. EST, the EBS platform was up and running again.
Brian Dolan, chief currency strategist at electronic trading platform Forex.com, said the problem appeared to initially affect "only New York City banks for the most part," until ICAP shut down EBS for repairs.
"EBS is still the backbone of interbank trading," he noted.
According to ICAP, the average daily electronic spot foreign exchange volume on the platform increased by 4% to $201.9 billion in the 12 month period ended Feb. 28. Average daily volume for the month of February was $153.7 billion, compared with $149.1 billion in January 2009.
The Bank for International Settlements' latest survey of daily turnover in traditional foreign exchange markets showed a total volume of $3.2 trillion, though some observers claim the actual amount that changes hands on a daily basis is much smaller and could be as low as $200 billion.
The EBS shutdown was particularly visible in the major currency pairs of dollar, euro and yen.
"The consensus is that EBS is the dominant platform in Europe, except for sterling-dollar trading," said Evans of Georgetown University. "EBS is also dominant in Asia," he added.
However, not all foreign exchange traders were equally affected by the disruption Thursday. Some traders scrambled to switch platforms, while other houses continued to trade as usual.
"We use a number of different bank platforms," said Brendan McGrath, a senior foreign exchange trader at Victoria, Canada-based Custom House, which advises global companies on foreign exchange and payment issues and has trading offices throughout the world.
"I did notice that one of our providers did go down," he said.
Forex.com was also able to continue trading as usual, said Dolan, by switching to internet-based bank trading systems.
-By Riva Froymovich, Dow Jones Newswires; 201-938-5063; [email protected]

GBP_USD Spot.png

the line in the SAND.
good night guys and trade safe

baz

positive pippage, but not a great deal. Only traded a short time.

Question for you EO. With the price going up and down between the 35 and 50 on the 15 m, and the 50/62 on the hourly,how did you trade it? I mean , if price closed through the 2 ma's did you go the other way with the trade?

I didn't take to many trades today ,, Just sitting in and trying to see what you are looking at as important. I hope to catchup pretty quick.. been trading full time about 5 months.. with mixed results.

Ken

I played ping pong with it. Long from the bottom, close and short from the top. Been doing it for the last 3 hours. When the ma's go flat, it's a range game up and down.

I'll post a chart.

Here's the 15m chart. Notice the hangman I have circled. Remember how I've been saying that prior PA is always in play until the candle is taken out? This is a prime example. Everytime price came up into the bottom wick, I went short. Once it crossed the ma's and closed, I went back long to the mid wick price.

Thanks for the chart.

I know you're not a fundamental trader, but with the nfp tomorrow morning I imagine we're going to be in a range for the rest of the night.

If today is any indication. Yes, I would agree, ranging for the next few hours. Depending upon how the Nikki does, could cause risk aversion to the dollar, drive price down, London open, drive price up, prior to US Open, price will come back to range until figures are released.

EO - Can you provide a little more detail, such as what type of range you were trading (ie how many pips you were pocketing per trade on average) as well as what was the top and bottom of the ping pong approach, what stop loss you used for the different trades, etc. I fully understand the concept, just trying to find an example of this approach so I can put it into play next time.

Thanks.

I had +94 pips for me...on the sidelines now.....great trading everyone !!!

Had to hit the sack, so tightened my stops a little & slept.
Got +35 in the acct this (my) morning.
Better than being stopped out.
Cheers

E,O ; I have made a chart of what i think you were saying about your 15 min trade today. Thanks for ll your input.. Ken

Good job!

It's always nice to wake up to green pippage! Good job!

EO....do you see her going down to that 4080 support ?

That's pretty close to how I traded this afternoon. No SL was used, just in and out keeping the hangman as my controller.

Evening!

I'll post a chart in a second to show you what I'm looking at.