Can you profit in a ranging market?

Ever heard the saying 'no news is good news' well that certainly doesn't seem to apply in the world of forex!

Frank when you say equities panicked and demand for USD surged does that mean there was a sell off on wall st and the money put into buying usd as a safe haven? Sounds reasonable. If that's the case would that be a temp 24hr thing or will this price now 'hold'. Or will the demand for usd continue for a few days?

Obviously this pair has two sides so is there a european equivalent of NFP etc that has a similar effect on the pair?

Also when you mention the bulls stops being taken out is that observable in price action around certain levels or are we just reminding ourselves that is what's going on? I'm learning a lot from your threads here hope I can be of some help back. I'm no pro but been messing about for long enough to start making some pips in this game.

This summer, since I've had time to focus on learning a bit about intraday momentum, I've noticed that the dow and eurusd like to move together when there are huge moves.

My guess would be that capital tied up in equities and commodities ( they have lots of demand when there is risk appetite ) flows from those asset classes into USD. Also I think that it makes sense that if global equity markets are scared, global investors might be inclined to purchase Tbills which require USD. So the surprisingly negative trade balance figures this morning caused equities in the US to sell off and this drove demand for USD.

This is all just guessing and observations that may or may not be accurate. Correlations can and do change and that's burned me before. That's why I like to try to get a gauge on sentiment before turning to technicals.

And steve my man two heads are better than one I feel like its a million piece puzzle and it will be solved more quickly with more people working on it.

Oh and about eur market movers I'm not so familiar because they happen while I'm fast asleep.

If I had to guess I would say that unemployment, inflation measures like CPI and PPI would be big... ECB minutes and speeches are things that I wake up and hear that some hot shit was dropped as a result of. General economic news out of the UK and Germany are also good probably.

Two heads indeed, sounds good. I'll start monitoring european news and any effect on the london open and early hrs for eur/usd. The asian session has been particuarly active recently and after major moves in NY it makes sense for any corrections to start there if NY closes on a high/low.

London has just opened and has immediately broken the 10hour long asian up-trend that started with a double bottom. If you look at the 1H chart, price was so far away from the 50sma that this pullback from 1.2830 was soo inevitable.

Price has just moved 60ish pips down in the past 20mins and if you look at the 1m chart you will see a lovely lil pullback after price breaks down through 1.2912 giving a clear entry signal for that move down. In addition there are two candles hitting a solid wall at 1.2906 a great confirmation sign.

The one thing that I don't get is does the dow move eurusd or the other way round?! btw he's not my dog, me and gf are just looking after him for a couple of weeks. He's great tho, you really get to see where you live when you have a dog to walk everyday, we are next to the forrest so it's a holiday for him too. cats are nice but you can't walk them. guess you could try?

Hey,

Only a 10 pip wide channel here but the underlying trend on 5m was down and sure enough the breakout was to the south - 20pips from top of range.

If we say there are 4 peaks to this range and that you would have recognised it as a range by peak 3 and certainly peak 4 then a sell at these prices would have been a b/e followed by 20pip win - or 10pip depending on TP.

A few things to think about - price occasionally breaks range lines by a pip or 2 so SL should be maybe 4pips above range line here, or are lines incorrectly drawn? Also should place order as soon as price touches line as can reverse quickly. For a risk of 4pips 20 have been on the table here.

Edit- price has bounced back to top of range area so TP at the 1st Fib would have been good for 18pips or so.