EURUSD Compression: "Pros" -vs- This System
Gone - but I'll allow this one to remain as a reminder of how irrational some of your behavior has been. Thos post is a great example of why so many people have difficult trading the Forex accurately and consistently for any prolonged period of time.
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Read this regarding the EURUSD:
“12/15/04: Holiday market conditions are starting to kick and the whippy, directionless performance of the USD in Asia today is a good example. The EUR/USD is back close to opening levels after looking very offered down at yesterday’s low around 1.3260. Traders say that it doesn’t take large volumes to move the EUR/USD 20 pips and it will probably get worse as we head into the Christmas/New Year period. The bounce off of 1.3260 validates the level as key support and there is talk of stops below 1.3250. The EUR/USD trades 1.3292/97.--
[email protected]”
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So, it would seem as if the “pros” are unable to determine where the EURUSD goes next. I’ve been hearing the ‘low volume’ theme thrown around for the past 4 weeks now on various news feeds.
If they had a better understanding of Price Structure and what causes the limits of the structure to be “set” in the first place as well as the “timing” of the development or building of the structure, then they would know to expect longer-term consolidation before the move higher. This underscores what I mean by "relative stability" in the Forex data -vs- typical stock data. There is just no comparison.
I would NEVER sit Long like this in the stock market with this much
compression in the price - never.
This, in light of the weekly targets that I have posted, is a good example of how this trading technology starts to set itself apart from the rest of the trading tools in the market. Technical Traders (what I like to call Technologists) are more closer to the reality of the current EURUSD condition than are the Fundamentalists. I’m starting to see the Technologists talk about short-term studies turning down, but still rather neutral in practical terms.
For the Fundamentalists, the U.S. Trade Deficit hit a record $55.5 Billion in October and the Fundamentalists were saying that, this might spark some long side activity that gets sustained today – yet – the EURUSD sits inside a fairly tight range – for now. Yet, I see some “pros” in various news feeds blame the lack of sustained upward mobility on the EURUSD on “October Oil prices that have peaked” relative to current prices. It is almost as if they make things up as they go along – at least it appears that way.
On the other hand, my trading system tells me that something called the
Omega Eclipse (I’ll explain that later) that ALWAYS occurs
once per week, got triggered on the Sunday/Monday session which is very early in the trading week. My research concludes that directly preceding the exhaustion of the Omega Eclipse each week, that the pair typically enters a period of horizontal occlusion
before the continuation of the primary trajectory.
Today, being Tuesday night – and the Eclipse event being over for the week – I expect a rapid expulsion of price into its target area late in the week. However, sometimes, when the Eclipse event happens so early in the week with such a rapid rate of expansion on price, it can stall the entire move for the remainder of the week – but I’ve only seen that happen a handful of times – even in back-testing.
For those wondering why the EURUSD has been so flat recently.
anyway.
