Author: SniperElite
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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…
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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…
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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…
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Get the trend in perspective
Perspective is everything! The following charts show different perspectives of NZDCAD. The moral of this story here is, not to maintain a narrow focus. This will require some deep thought. Perspectives change when you change your perspective.
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Looking again at Earnings Releases
This recent bounce on DEERE & CO has got me looking again at Earnings Releases. For those who would play ER’s a Guaranteed stop maybe advisable (cost of this need to be factored into the equation) or Reward to Risk ratios. Alternatively no guaranteed stops may be taken but risk of significant slippage would…
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Stalking NZDCAD
NZDCAD is showing an interesting setup at the moment. My analysis below suggests it worthy of a short anytime soon. NZDCAD ripe for a short by Captain_Walker on TradingView.com
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Value in waiting and CSW
In recent weeks I’ve been thinking about whether it makes sense to wait on a pull back on an uptrend to enter long. Some conflicting thoughts came to mind: Waiting means I could miss the ‘boat’. But importantly I lose nothing. Thinking about this more deeply, I think losing nothing is far more important. There…
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Comparing instruments
We normally trade currency pairs such as GBPEUR, NZDUSD, USDJPY and EURUSD (among others). How do you tell which one of the pair is doing what? It’s not easy to determine because the currency pairs form a ratio. In NZDUSD, you can’t really tell if the USD is weakening or strengthening because the movement of…
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In a good and difficult week
Only occasionally I share results of my trades. This week has been an important success in the lead up to the BREXIT referendum. The markets have been wild, to say the least. But in trading we like ‘wild’. I’ve used the ‘stealth trading system’ – and this last week was a pretty good test, playing 30min to 1H…
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The power of time momentum
I’ve now coined the term ‘stealth trading’ to mean trend following. All this is perfectly legal!! The chart below shows generosity to the markets. No longer are we fighting with the markets. We’re being kind in order to get our due returns. This is entirely different to a snatch-and-grab approach. See original assessment here at Tradingview.…