Seek advise on some simple fx questions

Hi All Fx guru,

In the past, most currencies pair movement is normal, depend on the

individual currencies pair.

However, since the beginning of last few months, the market movement is

very volatile.

1.I like to know why so much movement in one hour now compare to the past.

For example, EUDUSD in the past is 50-60 movement per hour, now, the movement

is more than 200-300 pips. What is the cause and why.

2.With so much movement per hour now, most strategy that we use in the past are useless as the stop loss of most hourly strategy are 40-60 pips. It cannot withstand the current market

volatile movement. Is there any advise on how to solve such issue beside increasing our stop loss

level.

Thank you :o

Re: Seek advise on some simple fx questions

Hi All Fx guru,

 

In the past, most currencies pair movement is normal, depend on the

individual currencies pair.

 

However, since the beginning of last few months, the market movement is

very volatile.

 

1.I like to know why so much movement in one hour now compare to the past.

For example, EUDUSD in the past is 50-60 movement per hour, now, the movement

is more than 200-300 pips. What is the cause and why.

 

2.With so much movement per hour now, most strategy that we use in the past are useless as the stop loss of most hourly strategy are 40-60 pips. It cannot withstand the current market

volatile movement. Is there any advise on how to solve such issue beside increasing our stop loss

level.

 

Thank you :o

Hi

i am not a expert but for the past months - the fx market has been following the stock market very closely.Thus it is affecting all the major paris in their movement.I have trading using T3B forex system by Clarence Chee and so far i have gain profits.Of course there are times when i go against the rules due to fear n greed thus causing me loose money :cry: :cry:

i think someone has uploaded Clarence ebook - you may want to take a look at it.The most profitable system of his is the PIPS Intra day..

cheers

dudjom

Re: Seek advise on some simple fx questions

I'm not a guru. But here's something that i've read (disclaimer: most are not my opinion, I just read about it somewhere):

However, since the beginning of last few months, the market movement is very volatile.

1.I like to know why so much movement in one hour now compare to the past. For example, EUDUSD in the past is 50-60 movement per hour, now, the movement is more than 200-300 pips. What is the cause and why.

- You need to understand that, to some degree, investment world is useless without business world. To some degree, business world could exist prosperously without financial world.

- You need to know what are the months and why. If you pay attention "last few months" are Jan, Dec, and Nov, which are fiscal month for almost all companies in the world. That includes, Toyota, Honda, GE, Nokia, Motorola, Microsoft, Citibank, Reuters, CNN, Bloomberg, etc. Now with the fiscal month coming, those smart executives were transferring, squeezing, arbitraging every money that the company could save. It is only natural if the the forex market is very volatile. It's not only this year.

- If you pay attention, it's been the case for almost every year in financial history. Kathy has been predicting the fall of eur on Jan, because of this accounting cycle.

- I think everybody realize that oil price had been played nicely from $40 to $140 and now back to $40 again. This brings catastrophe to transportation and logistic industries. Plus there was also low consumer confident. Thus some of the big players were panic, and didn't know what to do, creating market volatility.

- plus obama, plus israel, plus the cut rate, plus fannie & freddie. Well, you could add the rest.

2.With so much movement per hour now, most strategy that we use in the past are useless as the stop loss of most hourly strategy are 40-60 pips. It cannot withstand the current market

volatile movement. Is there any advise on how to solve such issue beside increasing our stop loss level.

1. don't trade forex, or

2. find another system, or

3. increase your stop loss

Regards,

Re: Seek advise on some simple fx questions

i am not a expert but for the past months - the fx market has been following the stock market very closely.Thus it is affecting all the major paris in their movement.

That's not what I've read.

Stock market is in somewhat recession. People could short sell stock, but selling short without any value is always not a preferred move of the big players. Even Warren bought a falling China Gas company, not short selling it.

With the stock market is falling, big players are minimizing their position in the stock market and going to commodity and forex market. You can see the proof of this by looking at gold price. The retracements are very wide since 2007. Big players dump stock and got into forex. Thus, forex is not following the stock.

However, there is also a condition that big players dump stock, thus holding the USD, making USD movement kindda mirror stock movement, although that is not the real fundamental reason.

Disclaimer: this is also what i've read somewhere else, not my opinion. Don't trade on this advices :D

Regards,

Re: Seek advise on some simple fx questions

i am not a expert but for the past months - the fx market has been following the stock market very closely.Thus it is affecting all the major paris in their movement.

That's not what I've read.

 

Stock market is in somewhat recession. People could short sell stock, but selling short without any value is always not a preferred move of the big players. Even Warren bought a falling China Gas company, not short selling it.

 

With the stock market is falling, big players are minimizing their position in the stock market and going to commodity and forex market. You can see the proof of this by looking at gold price. The retracements are very wide since 2007. Big players dump stock and got into forex. Thus, forex is not following the stock.

 

However, there is also a condition that big players dump stock, thus holding the USD, making USD movement kindda mirror stock movement, although that is not the real fundamental reason.

 

Disclaimer: this is also what i've read somewhere else, not my opinion. Don't trade on this advices :D

 

Regards,

Thks for sharing.

just to share- this was a live trade done - using Clarence's system.

Hope it will help some traders out there

cheers

gbp jpy - 27 feb 09 - trade 1 - closed

Date of Trade (GMT): Feb 27, 2009

Live

Currency Pair: GBP/JPY

Remark - Asian Stock Market Bearish

Trade: Short

Method: PIPS Intraday

Entry Time (GMT): (Feb 26, 2009) (23:19)

Entry Price: 140.73

Initial Stop Loss and Basis: (35 pips)

Initial Target Profit and Basis: 1.4000 - Psychological Level

Adjusted Target Profit: 137.75 - 25 Feb 09's Low

Planned Risk-Reward Ratio: 1:2

Stop Adjustment:

140.73 (protected 0 pips)

Exit Price: 139.68

Exit Time(GMT): 00:55 (Feb 27, 2009)

Reason for Exit: Manual Closed

Profit / Loss: +105 pips

Actual Risk-Reward Ratio: 1:3

Re: Seek advise on some simple fx questions

Hi learningfx,

For me the more volatility is better, i don't want to trade in low volatility period... :D

You need dynamic stoploss not hardstop, ATR indicator is good choice in this case. In hourly TF set ATR value (8) and your stopploss should be twice or 3x, or maybe you could switch to lower Time Frame like 15M or maybe 1M TF.....Lol

Just my opinion, Peace... :mrgreen: :peace:

Re: Seek advise on some simple fx questions

You need dynamic stoploss not hardstop, ATR indicator is good choice in this case. In hourly TF set ATR value (8) and your stopploss should be twice or 3x, or maybe you could switch to lower Time Frame like 15M or maybe 1M TF.....Lol

Good Tehnique Z4will :arrow:

I like Dynamic SL like use ATR base, or Volatility like Bband Vstops etc ...

Re: Seek advise on some simple fx questions

Good Tehnique Z4will :arrow:

 

I like Dynamic SL like use ATR base, or Volatility like Bband Vstops etc ...

Yes, it's good. That's why I use it on Lyly also :D

Regards,

Re: Seek advise on some simple fx questions

Hi,

Thank for all the comments & advise. I take notes

of them.

There is no right or wrong answers in trading. :arrow:

Re: Seek advise on some simple fx questions

My thanks for all the comments too.