Dislikedi have more questions, 1) Is risk of or risk on time independent,by this, i mean, if you look at the finviz weekly relative performance,you would see that the commodity currency have been strong all week long hence a risk on....however if you use the daily relative performance,it has been changing day to day session to session...yesterday money flowed into jpy seriously...(risk of), today its going into the dollars... so is possible to have different views on weekly and daily. 2) What time of the day is best to start tracking money flow. 3) Am new...Ignored
There is only one way to determine if there is Risk On or Risk Off at any one moment in time. That is done by asking yourself that question ? How do you find the answer ? That is quite simple. You look at the various Equity markets either having closed such as Asia and now I see on my TV turned to CNBC that all of Europe is in negative territory. The main ones are of course the CAC and Dax and FTSE.
At the moment we have the Risk On and we await the 8:30 AM NFP to see if we stay with Risk Off or if we change to Risk On. However that in itself requires an additional understanding and I will explain what that is. It is a very important understanding, because it forms the human psychology of the market within hours of the release.
The present PERCEPTION most likely WRONG is that the FED will raise 4 times this year. We will see !!! However let us speculate that we do have a low number such as 125,000 or less , then the immediate PERCEPTION changes to the FED will probably not raise rates until the second part of 2017.
That should serve to allow the US Dollar Index to go lower and Gold and the other currencies to go higher although perhaps not all of them. Each currency has a different DNA such as the YUAN as we have just seen.
BOTTOM LINE - In the Forex Markets with the leverage that I use and many others use of 100 to 1, then you now can understand why you need a FOOLPROOF Risk Management Strategy and why all the questions about Risk On or Risk Off or charts or indicators or PERCEPTIONS can change in seconds then reverse in hours or days as I have clearly explained this morning.
Please ask me or anyone else ask me, a follow up question or your own answer and share it with all of us. We can only learn through intelligent communication and no chart or EA or Robot or even Human with the wrong understandings can give the most intelligent answer possible.
Benjaminis
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