Forex

Forex Trends and Whipshaws

In this lesson Bo Yoder looks at the current forex markets and what happens when the trend ends and consolidation follows.

Click here to view the video (will appear in new window).

Bo Yoder is an internationally known trading instructor and the lead trader and instructor for RealityTrader.com, an online educational forum on trading principles, methods, and techniques. A frequent contributor to "Technical Analysis of Stocks and Commodities, "Active Trader, and other industry publications, Yoder also writes for popular websites including TheStreet.com and RealMoney.com. He has worked with hundreds of individual traders and market professionals as a risk management consultant and trading mentor.

Bo Yoder is an internationally known trading instructor and the lead trader and instructor for RealityTrader.com, an online educational forum on tradi...

2be

Experienced member
1,866 299
Possible use of either Trailing Stop-Loss or a well defined profit taking could protect profits or prevent otherwise greater losses. The middle of the range seems to offer useful guidance. If the market is not trending (medium term - days/weeks rather then weeks/months) every trade demands more intra-day attention, with the exit point being worked out in detail according to the price action or other rules of the trader's strategy. Useful description of the different market behaviour while trending or side-bound.
 
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Priceman

Established member
757 84
Stuff that we can all see happening but not sure how to deal with... He does show how he trades between short term highs and lows as the price passes through the median point in whippy times. Not much detail, spose you have to buy for a more in-depth explanation ;) ...fair play

Usually this kind of stuff happens during news releases to shake people out. He could have mentioned that maybe.

Market could be seen as trending if you work on smaller timeframes for smaller pip profits, Bo was working off 120min which is too long for me.

Better presentation however with the video than just the normal write-ups.
 

jacinto

Senior member
2,374 101
Interesting to see things from a different angle. Dont know if he actually uses other timeframes to assess market conditions or not. Also, I dont know if he actually tries to see a link with the overall market (say, when trading Cable, always have a look at EURUSD, but also at EURGBP)

However, it simply confirms my personal view, that the market has to be assessed top down (from the monthly, down to the weekly, down to the daily, even 240) to get a good understanding of directional bias, and this is not shown in this video, and on that front I would say is lacking.

Having said that, it is clear this is not a video for daytraders......unless daytraders learn to transfer TA from all the different timeframes, and adjust risk-reward accordingly.

j
 

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