I use my SRVs in FOREX just about the same way as when trading futures – with one small difference.

I have noticed that the SRVs that turn price oscillations and send them in the opposite direction often do so at a price that is a bit short of the actual SRV value. That is, price does not quite reach the SRV line before it makes its turn in the opposite direction.

After pondering this for some time, I noticed that the difference was almost exactly the same as the difference between the bid and ask prices for the market being traded. I have not made a scientific study of this but just wanted to point out to FOREX traders that the SRV value might not be actually reached and that adding the bid and ask spread to price as it approached an SRV might be of benefit in deciding when to enter the market.

As I like to place orders to enter “market if touched” this is a particularly important consideration in constructing such orders. I noticed this when I missed several FOREX entries by a handful of pips and started wondering why.

I would rather give away a handful of pips and get my trade when FOREX is about to change oscillation directions – as opposed to missing the trade altogether.

But please keep in mind, as with so many things in trading, this does not happen all the time – but it is frequent enough to keep in mind when you are quite sure that an oscillation change is about to take place.

Additionally, I use SRVs created by my proprietary RMI system, and their values are usually a bit different from conventionally created SRVs – and often a bit more accurate in nailing the point that price turns.

You can learn all about my SRVs by reading my eBook, See the Music of the Market.

 

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See the Music of the Market

The unique trading method that is Trading Between the Lines