A simple explanation for those who trade 'Cable'
http://www.forexfactory.com/news.php...91#post3978524
Well worth reading, me thinks............
Great article. Thanks.
Cable Update (GBPUSD)
- #248,942
- Aug 26, 2010 6:29am Aug 26, 2010 6:29am
good After Noon Palz.......
Well, Itz Really a Great thing which i'm observing here... Surely it can be at 1.59** soon if it holds 1.5520...
have a nyc PipZzz...
For Hindustani ( Nyc views ) Best of Luck
Well, Itz Really a Great thing which i'm observing here... Surely it can be at 1.59** soon if it holds 1.5520...
have a nyc PipZzz...
For Hindustani ( Nyc views ) Best of Luck
- #248,943
- Edited 6:42am Aug 26, 2010 6:31am | Edited 6:42am
- Joined Jun 2008 | Status: Trader | 1,739 Posts
A simple explanation for those who trade 'Cable'
http://www.forexfactory.com/news.php...91#post3978524
Well worth reading, me thinks............
It is a poorly written piece, in my opinion, and there is also an incorrect assertion made in respect of gilts:
"UK bond prices are rising (implying an increased risk of default),,,"
Rising bond (gilt) prices, equates to lower yields, meaning investors are demanding a lower risk premium to hold UK paper than the debt of other sovereigns. If investors are seeking a lower risk premium, then they clearly believe the risk of default from the UK has diminished in recent months.
Also, there is no mention whatsoever on the potential consequences for the dollar from the dreadful US economic numbers of late, a time when UK data has, for the most part, surprised the market to the upside. The latest chatter/gossip on this front is suggesting that an increase to QE will be announced in October, as the Fed attempts to fight off the increased risks that the economy slips into a deflationary environment.
- #248,952
- Aug 26, 2010 7:09am Aug 26, 2010 7:09am
- Joined Apr 2009 | Status: Know Your Wave | 2,640 Posts
As far as GU is concerned, we still haven't clearly broken out of the indecision area. We are trading above the Weekly and Monthly Pivot, but PA is still bearish on the daily chart. The recent move up could well be positioning for a drop off the US Data. (15600 is an area on many people's radar for bullish trend continuation, but also a great place to position price for the next leg down). Until we have a clearer picture, my medium term bias is short, but since we are in a small range, near SR targets with tight stops is the safest bet.
good luck w/ your trades everyone
off to dinner!
There's no such thing as a simple explanation in market fundamentals. There are many factors affecting the pound, that to oversimplify it can create misleading impressions. There are some excellent fundamental traders here (like Gammase). But it takes years of experience to properly trade fundamentals. For people just beginning as traders, properly mastering the technicals should be their primary focus. (and far less confusing)
Flight from risk has increased USD strength following the NFP results, but to calculate reasonable profit targets, why the USD is moving up is not as critical as how. By applying technical analysis to the USDX in tangent with GU you can define high probability areas where price may move and increase the likelihood of taking better trades.
btw: if anyone's interested, from the earlier discussion on lagging indicators, this paper on MA Evolution better explains what I was trying to say about algorithmic function in relation to lag and why certain calculation methods correlate better to price movement than others.
good luck w/ your trades everyone
off to dinner!
A simple explanation for those who trade 'Cable'
Flight from risk has increased USD strength following the NFP results, but to calculate reasonable profit targets, why the USD is moving up is not as critical as how. By applying technical analysis to the USDX in tangent with GU you can define high probability areas where price may move and increase the likelihood of taking better trades.
btw: if anyone's interested, from the earlier discussion on lagging indicators, this paper on MA Evolution better explains what I was trying to say about algorithmic function in relation to lag and why certain calculation methods correlate better to price movement than others.
- #248,954
- Aug 26, 2010 7:16am Aug 26, 2010 7:16am
- Joined Jun 2008 | Status: Trader | 1,739 Posts
salam all...
easy trade for today...
already profit 450usd for today...
other 50usd to find...then hit my daily target...
still got 1op long gu from 55117..
You da man!Keep posting stuff like this, as it acts to inspire others and adds greatly to the depth of quality on this already rich thread.
Once again, well done. The warmest of congratulations to you.
- #248,956
- Aug 26, 2010 7:21am Aug 26, 2010 7:21am
- Joined Apr 2009 | Status: Know Your Wave | 2,640 Posts
hey Paul
While I was writing my post about fundamentals, I didn't see you posted. ...lol
Thanks for the insight.
Hope all is well and you're enjoying your summer!
While I was writing my post about fundamentals, I didn't see you posted. ...lol
Thanks for the insight.
Hope all is well and you're enjoying your summer!
I think the writer of that piece approached the subject matter with a bearish bias firmly in place and selected the "facts" (I use that term very loosely) merely to confirm their view, rather than to challenge their thought process.
It is a poorly written piece, in my opinion, and there is also an incorrect assertion made in respect of gilts:
"UK bond prices are rising (implying an increased risk of default),,,"
Rising bond (gilt) prices, equates to lower yields, meaning investors are demanding a lower risk premium to hold UK...
Ker-ching!!
Keep posting stuff like this, as it acts to inspire others and adds greatly to the depth of quality on this already rich thread.
Once again, well done. The warmest of congratulations to you.
just want to inspire other trade...
keep learning and learning and more learning....
forex we learn new thing every day...
just patient and keep on learning
Revesal Trader
- #248,959
- Aug 26, 2010 7:28am Aug 26, 2010 7:28am
- Joined Jun 2008 | Status: Trader | 1,739 Posts
hey Paul
While I was writing my post about fundamentals, I didn't see you posted. ...lol
Hope all is well and you're enjoying your summer!
Summer is over in London, unfortunately.
All is good with me, though. I hope it's the same for you and your family.
I am greatly looking forward to the start of September, a time when I'll once again increase my risk exposure.
Good to see you posting more on here.
Cheers, Paul