DislikedRazorjack finally found a thread that combines fundie and technie(which in my opinion is the correct way to trade). Now my question could you take us through the practical...Ignored
Congratulations on your profits.
Now my question could you take us through the practical process you arrived at going long on usd cad and short aud usd bearing in mind that the long term trends on the weekly/ daily charts are currently opposite your positions.
Yes, I'll do my best. Just ask if something isn't clear.
I know that price were at extreme levels and sooner or later a correction was expected particularly against the commodity currencies. So what other factors did you consider.
Yes, prices were at extremes but I look at WHY prices were at extremes and what was driving the commodity trends.
My assessment is that major weakness seen in the USD throughout most of 2009 and the huge credit fueled boom in China were the major driving forces behind the commodity trends and thus the trends in the commodity currencies.
So I have been waiting for the USD to strengthen and for China to tighten it's monetary policy. We're seeing both of these now.
So what I did was wait for price exhaustion in the commodity currencies around major S/R levels and trendlines. Then slowly built my position over several days as the S/R levels were holding. There wasn't much more to it than that.
Actually in these particular trades, even pure technical traders could have called these trades, had they looked at price extremes and price exhaustion at major S/R levels.
With the fundamentals in mind, I just happened to be anticipating this movement for several weeks.

-Razorjack