I have been recovering from some minor surgery for about two weeks now and have not felt like trading or even writing about it – but I have been watching the markets and thinking about what is going on.
Once in awhile it is a good thing to just stop what you are doing and think about it for a bit. It gives things a chance to come into focus a little better and you can ask yourself if things are really working as well as you think they are – and if not – then why?
I am a short term technical trader and generally do not routinely pay much attention to fundamentals. However, I have always known that fundamentals do matter – and traditionally, fundamentals direct the market in one direction or another. As a short term technical trader I treat fundamentals as follows:
1. Before I start trading each day I scan the news for any fundamental data that might move a market I intend to trade.
2. If a fundamental event is scheduled for a day I intend to trade and it may have a large impact on the market I intend to trade that day I will often get out of the market before the event and wait out the effects it has on the market. It can take from minutes to hours for such action to run its course
The reason I do number 2, above, is that it is virtually impossible these days to predict what the market is going to do in reaction to the fundamentals.
Take yesterday’s European Central Bank ECB) meeting. The chairman of the ECB made announcements that logic would suggest would not be good fundamentally for the EURO.
So what happens? First the EURO/USD pair took the logically expected nose dive – dropping a bit more than a full big pint (one cent). Then, for no apparent reason it reversed and soared almost 4 big points before the end of the day.
Moves like that are exciting for traders, and for the few who got both moves right, extremely profitable. But trading such moves can be very dangerous – like trying to catch a falling knife. To trade such moves you need a trading method that is not only good, but one you can trust – I mean really trust. To that end I would like to recommend my RMI – a part of my trading method – and for such moves a BIG part of my trading method.
Look at the chart below:
Figure 1: EUIR/USD 6000 Ticks Per Bar
The RMI – the blue and yellow oscillators – clearly told me the short down move was about to end and that a sizable upward move might follow.
You can get a book that explains in all for less than 10 bucks. The RMI is available for TradeStation Apps Store for only 5 bucks a month. In the word of trading indicators, that is not only a bargain – it is a steal.
Get See the Music of the Market under the “Books Tab.”
Get the RMI by using the following link: https://tradestation.tradingappstore.com/search/all/rating?search=RMI
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Author & Trader
Thanks for the method !! Very solid, very logical entry and exit and genius SRV’s !!Denis DRussia
Great system – couldn’t trade without it !!Frank YDavid, Panama
the SRV’s are spot on !!Tom CUSA
“The SRV’s are amazingly accurate”.Tony Texas
….very impressed with the whole philosophy – both personal and trading, expressed in the book. I will read and revert !!Richard DUSA
I trade the US Bond Markets exclusively – amazed at the accuracy of the SRV’s !!George SNew York, NY
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