Brexit really hit the currency markets hard. Record movement in the value of most major currencies was recorded in a matter of a few minutes – and the markets may not be done with the volatility as yet.

Things have stabilized a bit, but the nervousness is still there – look at the high volume – and the high spread between bid and ask – both signs of a nervous market. It is time to use extreme caution in trading.

There are as many different ways to trade this type of market as there are traders. A very large amount of money can be made if you can guess the markets next big move beforehand.

But I don’t like to use the word guess in constructing a trade. It is a matter of semantics – all trades have a probability of profit – and a probability of loss. I try to take trades that have a much higher probability of profit. Of course that is easier said than done. But my trading system is built around a method that generally gives me an edge. I lose occasionally – but win much more often.

My system is built on support and resistance values (SRVs) derived by a unique and proprietary way and a relative momentum indicator (RMI) that helps me predict the market movement in the near future.

Then I look at the market with five charts – a weekly chart, a daily chart, and three different intra-day charts. The intra-day charts are set at three different time frames (usually about ten times the number of ticks per bar from the fastest chart to the slowest chart).

The following Figure 1 shows a screen shot of my basic desktop for trading the Japanese yen/US dollar pair.

PCE_Desktop.jpg

Figure 1 USDJPY Desktop 6-28-16

Prices oscillate and those oscillations look different in different time frames – just like music sounds different when played at different speeds. When you learn to see the music of the market it is much easier to see the best time frame to trade. My eBook, See the Music of the Market describes my method in detail and it is on sale right now at Amazon. Just click on the following link.

https://www.amazon.com/See-Music-Market-approach-trading-book/dp/B01G5VMXES/

 

 

 

 

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See the Music of the Market

The unique trading method that is Trading Between the Lines