Year: 2016

 

Nerves of steel – like Formula 1 racing.

Many new traders are unaware that they actually need nerves of steel. Some will argue that ‘nerves’ are not part of the equation – if one is truly in the so-called fearless state. But hang on – on the way to achieving that state, there will be ‘nerves’. It’s no good expert traders telling new traders to lose their nerves. After a new trader gets his nerves of steel, then he actually realises there isRead More

AUDUSD – bearish

AUDUSD is at this time at a potentially critical point. The charts will need much further study. This is not a recommendation to take a position. DISCLAIMER: The information provided herein is opinion only. Under no circumstances do any statements here represent a recommendation to buy or sell securities or make any kind of investment. You are responsible for your own due diligence. To summarise, we do not provide investment advice, nor do we makeRead More

EURUSD – learning from reflection

Hindsight is a wonderful thing. We can learn lessons but in doing so there is a risk of the coulda-shoulda-woulda phenomenon. The following charts show some interesting features in EURUSD. Any lessons there should be applied cautiously. 

Complex trends

For some time I’ve been looking at trend lines. It has been noticeable that not all trends are simple. Complex trends may have minor trends within them as in the example below. Why is this important? It’s about how or when you enter a trend. Trend lines are fascinating when you watch them over a long period of time. We can’t really explain them Their power needs to be respected.

Stalking GBPJPY and AUDUSD.

The chart with annotations below shows some interesting possibilities. Price may or may not reach the striking zone in the charts below. They don’t mind if the prey escapes and moves on for a while; they’ll catch um another time!!  Good snipers wait in the ‘bush’, stalking their prey for a high probability ‘kill’ conditions. Snipers know that there is a chance that they can miss, that’s why they wait on optimal conditions. How itRead More

Profiting from greed

It is possible to profit from greed as much as it is from panic. The following chart was not a prediction. It was an expectation and it materialised.

Deceptiveness of the RSI

The RSI (relative strength index) is classified as a ‘leading indicator’ because it is thought to have predictive value. By contrast lagging indicators are said to simply follow price and have less predictive value e.g. bollinger bands. The reality is that no indicator can predict anything and all indicators have limited predictive value because they all rely on historical price movements. Notions of predictive value are formed after events have happened, and are subject toRead More

Dreamers exploited

The more I look around the net on trading courses, the more I come to think that there is a big scam going on. Some of the supposed greatest traders out there are selling trainings and courses. They’re selling dreams for the most part. Look, I just don’t get it – if you’re making millions why would you wish to sell new traders whatever opportunity at £1799 reduced from £9977? Do you really need theRead More

Assessing trend strength

It’s usually possible to easily spot the direction of a trend by looking at a chart – that’s the easy part of trading. What’s not as easy is to work out how strong the trend is. By ‘strong’ I mean, if you’re putting your money on the trend going in the preferred direction, you would wish to have some idea of how powerful or reliable is the push. See below a clear trend down onRead More

The Zanger interviews

These interviews may seem meaningless to new traders but in reality they’re worth millions!  See also: Who the devil is Dan Zanger and why should anybody care?