EURUSD

The ECB buys bonds, on secondary markets only by mandate, it then has to take that money supply out of the market within a week, again as per mandate as it is not allowed to print money, so it auctions deposits for commercial banks to use at a decent rate to take the same amount of money out of the system within a week equal to the bond purchases the week prior.

This is now the 3rd time this year that the desensitising process (as it is called) has failed.

Thanks buddy, but I am not one for indicators.

IT needs more work, the balance is a bit off. Just wanted to show what is fairly easily possible with a bit of hard work.

no worries, but you'll kick yourself for not trying it

demo it for like 1-2hours via 1min and 5 min TF.... killer

By Jan Strupczewski
BRUSSELS | Tue Nov 29, 2011 12:00pm GMT

BRUSSELS (Reuters) - Euro zone finance ministers are to agree on Tuesday the details of bolstering their bailout fund to help prevent contagion in bond markets, under pressure from the United States and ratings agencies to staunch a two-year-old debt crisis.
U.S. President Barack Obama pressed European Union officials on Monday to act quickly and decisively to resolve their sovereign debt crisis, which the White House said was weighing on the American economy.
Underlining the threat to tottering European economies, ratings agency Moody's warned on Tuesday it could downgrade the subordinated debt of 87 banks across 15 countries on concerns that governments would be too cash-strapped to bail them out.
Rival Standard & Poor's could downgrade the outlook on France's top-level triple-A credit status within the next 10 days, signalling a possible ratings cut, a newspaper reported. The news briefly hit the euro.
White House spokesman Jay Carney said Obama's message, delivered to top EU officials behind closed doors in Washington, was that: "Europe needs to take decisive action, conclusive action to handle this problem, and that it has the capacity to do so.
Poland's Foreign Minister Radoslaw Sikorski made a dramatic appeal in Berlin on Monday for Germany to show more leadership in the euro zone crisis.
"You know full well that nobody else can do it," he said in a speech in the German capital, referring to efforts to save Europe's monetary union.
"I will probably be the first Polish foreign minister in history to say so, but here it is: I fear German power less than I am beginning to fear German inactivity. You have become Europe's indispensable nation."
Tuesday's meeting of the Eurogroup, which brings together finance ministers from the 17 euro-zone members, was set to fix details of leveraging the European Financial Stability Fund (EFSF) so it can help Italy or Spain should they need aid.
They are also likely to approve the next tranche of emergency loans for Greece and Ireland.
Hopes that signs of concrete action could ease strains on the euro zone boosted markets, with Asian equities and the euro rising for a second day on Tuesday.
DETAILED PLANS
Documents obtained by Reuters on Sunday showed the detailed guidelines for the EFSF were ready for approval, opening the way for new operations and multiplying the fund's effective size.
The documents spell out rules for EFSF intervention on the primary and secondary bond markets, for extending precautionary credit lines to governments, leveraging its firepower and its investment and funding strategies.
"I would expect we will be in a position to approve the guidelines at a political level," a euro-zone official involved in the preparations for the ministers' meeting said.
The EFSF guidelines will clear the way for the 440 billion euro (378 billion pound) facility to attract cash from private and public investors to its co-investment funds in coming weeks.
The European Central Bank (ECB), which is now buying bonds of Spain and Italy on the market to prevent their borrowing costs running out of control, has been urging euro zone ministers to finalise the technical work on the EFSF quickly.
Officials have told Reuters that the leveraging mechanisms could become operational in January, but that may be too late.
With Germany rigidly opposed to the idea of the ECB providing liquidity to the EFSF or acting as a lender of last resort, the euro zone needs a way of calming markets, where yields on Spanish, Italian and French government benchmark bonds have all been pushed to euro lifetime highs.
ECB ROLE
The OECD rich nations' economic think-tank said on Monday the ECB should cut interest rates and abandon its reluctance to step up purchases of government bonds in order to restore confidence in the euro area.
The ECB shows no sign of doing so yet. It bought 8.5 billion euros of euro-zone government debt in the latest week, at a time of acute turmoil, in line with its previous activity but well short of what economists say is necessary to turn market sentiment around.
Sources have said the Obama administration has also urged Europe to allow the ECB to act as lender of last resort as the U.S. Federal Reserve does.
Germany and France stepped up a drive on Monday for coercive powers to reject euro zone members' budgets that breach EU rules, alarming some smaller nations who fear the plans by-pass mechanisms for ensuring equal treatment.
Berlin and Paris aim to outline proposals for a fiscal union before an EU summit on December 9 that is increasingly seen by investors as possibly the last chance to avert a breakdown of the single currency area.
"We are working intensively for the creation of a Stability Union," the German Finance Ministry said in a statement. "That is what we want to secure through treaty changes, in which we propose that the budgets of member states must observe debt limits.
Rumours about the threat to France's credit rating, which have circulated for several months, illustrate how the crisis has moved inexorably from indebted peripheral nations such as Greece and Portugal to the heart of Europe.
Economic and Financial daily La Tribune reported on its website that S&P's was preparing to change its outlook on France's sovereign rating from "stable" to "negative".
"It could happen within a week, perhaps 10 days," La Tribune quoted a source as saying.
The news coincided with the warning on subordinated debt from Moody's, which said the greatest number of ratings to be reviewed were in Spain, Italy, Austria and France, and knocked the euro a third of a cent before the currency recovered.
"Moody's believes that systemic support for subordinated debt in Europe is becoming ever more unpredictable, due to a combination of anticipated changes in policy and financial constraints," the agency said in a report.
Holders of subordinated debt are further back in the queue than owners of senior debt when it comes to a claim on a bank's assets, thus making it a riskier class of debt.
Mario Monti, Italy's prime minister and finance minister, will attend Tuesday's Eurogroup meeting to explain the reforms Italy plans to undertake to regain the confidence of markets.
Saddled with debt equal to 120 percent of GDP and soaring borrowing costs, Italy has been battling to avoid financial disaster, which analysts say would endanger the whole euro zone.
Italy must balance its budget by 2013 and offer immediate fiscal measures worth 11 billion euros if it wants to regain its credibility, according to a document on Italy that will be presented to the Eurogroup, Italy's La Repubblica newspaper said.
In a sign of intense market stress, short-term Italian yields last week climbed above those of longer-dated issues. Both are higher than the 7 percent level widely seen as unsustainable for the country's public finances.
The funding pressure is set to be underlined on Tuesday, when investors are expected to demand more than 7 percent at auction to buy three- and 10-year Italian debt.
(Additional reporting by Erik Kirschbaum in Berlin; Writing by Alex Richardson; Editing by Neil Fullick)

Thanks now it makes sense. More money in the market remained that's why it is like a small QE!

Cheers

Oh go have another wet dream..didn't think you had a clue what you were talking about.

USA is going to explode..thats funny

We all saw it coming, and we all know the idiot will be back again, this place is full of failed traders that take great pleasure misdirecting the unsuspecting noobies.

that indi probably from forexfactory, Karl Dittman the guy who has named that indi, takes free indi's then adds some fancy colours to them, then sells them, search bbands stop as that the indi's original name

british embassy broken into in tehran by students

I am sure he will be back again with a different name

IT is not just that, but if the ECB can't even entice banks to deposit cash, what does that say about the state of the interbank system.

What time frame and pairs are you using it on?

Cheers dude, nice to see you around (not on holiday yet?), how are you doing?

Actually, scalping is all the trading I do now, with all those fundies and interventions literally on daily basis in these harsh times you can never be sure where the market turns (one stupid relief statement of Merkozy and your shorts go to hell and vice versa). Definitely not doing 150 a day though, my long-time AVG is around 70-80 per day but I trade very large positions after all so I am not unsatisfied.

I am also currently trying to develop a new strategy on my fun (higher risk, testing etc.) account, started 3rd Nov and closing the first month now with 300% evaluation (RRR 1.5, W/L ratio 80-20). Still pretty much under construction though and definitely not generating 150 pips per day (my deep respect if you manage it, seems pretty tough target as an average value for me)

Can't blame the idiot for trying, there are plenty of scammers here flogging all kinds of sh!t, they can't make it as a trader and want to make some money somehow.

Each and every Strategy you find here on FF is cr@p, everything for sale is useless.

Think about it, if it were that good, you'd flog it to GS for 10Mn not to some idiot you've never met for 99 bucks.

Just banks are short in liquidity i think and are not willing to deposit.

Ps: sounds like the credit crunch????

If I don't get 150 pips a day on EU out of a strategy, it is not worth incorporating live.

Could well be, not a good sign, hence the drop. Just play it as it comes, don't go thinking too much of what is behind it, just use it as a no brainer setup and make some dosh out of it.

50 trades and no losing trades

lol I think I can only do that in my dreams at the moment

May not be a good idea..I see more upside for cable...the gap was over 50% filled..they may leave it for a while..just sayin

I showed one here a few weeks back with 190 winners in a row covering 3 weeks of trading, that's not what trading is about though and isn't really that hard to do, trading is about being consistent over time.

The point of the exercise for me is finding 150 pips a day without or with little risk, without overtrading and with consistent returns. If you look at he the per average return per trade it is around 1.5%, which is what I am aiming for, however there are too many outliers for my liking still. I am also not happy with the 80 pip a day, that may well be due to holiday season, so if I can get that to 120 by Xmas, I will test this one further when normal trading resumes again in Jan to see if I can get it to 150 a day. By March I should have it ready to go live for a few weeks before summer season starts in June.