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Do you pay attention to fundamentals?  

34 members have voted

  1. 1. Do you pay attention to fundamentals?

    • Yes
      8
    • No
      22
    • Only for longer term trading
      7


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Well, isn't your thread about utilizing supply and demand to one's intra-day trading benefit? Stochastics and %R are merely technical indicators that help determine overbought and oversold status, so they can serve as tools to support/implement your chart theory.

 

Yes, it's about supply and demand. But introducing mathematics doesn't help in reading the supply and demand.

 

A stochastic oscillator is commonly a formula based on the comparison of the most recent closing price and the recent range. Which means that when you say price is 'overbought' or 'oversold', based on an indicator like %K, %D, %R,... all you're saying is that price has been rising or falling for a considerable amount of time.

 

I'm sure you've seen a lot of charts where price couldn't care less about whatever oscillator saying it's overbought, and just continued on it's merry way. I've attached a chart as illustration. As long as the demand is greater than the supply present, price keeps on rising. No matter how overbought a particular indicator may look.

 

attachment.php?attachmentid=9374&stc=1&d=1234201447

overbought.gif.8f80764587faec8b131ec6f0e548a42d.gif

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Guest Trader28

Price action tells you all you need to know, eradicate everything else

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Price action tells you all you need to know, eradicate everything else

 

If you want to win consistently and be a winner in forex trading with all your tools is the only way to go. Without understanding fundamentals then the odds of anyone being a consistent winner are not good. If you can win without all the proper tools more power to you.

 

All the thoughts and opinions are only valid if you have the results as well. Is there anyone posting an opinion who can honestly say that they average over 10% increase in NAV month after month after month and win at least 75% of all their FX trades ?

 

Perhaps a few but I doubt more.

 

I achieve the results mentionned and more so my post is not opinion it is FACT.

 

:)

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Guest Trader28
If you want to win consistently and be a winner in forex trading with all your tools is the only way to go.

 

Not interested in Forex

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Not interested in Forex

 

Good For You ! Be Interested In Whatever Interests You. Be 100% right 100%of the time. Alice In Wonderland is alive and well now at least in the USA !!!

 

The Dow is headed for 6000 as price movements will tell you BUT fundamentals could have told you that about one year ago.

 

That is the beauty of life. Everyone can be an EXPERT in their own mind but in the end the only result that counts for a trader, investor, speculator or gambler is "HOW MUCH DID YOU WIN" ?

 

Welcome to the real world folks.

 

Fundamentals are KEY PERIOD !!!

 

Everything else is NOISE !

 

Does anyone here recall August 8, 2008 ?

 

Look it up on a chart and you will see that ONE FUNDAMENTAL FACT and ONE MAN'S WORD created the situation where EUR/USD reversed trend from a High of 1.6000 and around August 8, 2008 it was around 1.5500 and then LOOK AT IT go down to 1.2500

 

There was NO CHART in the world that showed that. Sure price movement showed it go from 1.5500 to 1.2500 SO WHAT ?

 

The FUNDAMENTAL FACT of Trichet saying we will CUT and why changed it all and not only for EUR/USD

 

Comments welcome but no comment can change that FUNDAMENTAL FACT !!!

 

 

:cool:

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Guest Trader28
Good For You ! Be Interested In Whatever Interests You. Be 100% right 100%of the time. Alice In Wonderland is alive and well now at least in the USA !!!

 

Still not interested

Edited by Trader28

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The Dow is headed for 6000 as price movements will tell you BUT fundamentals could have told you that about one year ago.

 

Could you direct me to your post from one year ago where you told everybody to short and stay in until we hit 6000? Unless you make money out of it, predictions are useless. Especially the hindsight ones..

 

That is the beauty of life. Everyone can be an EXPERT in their own mind but in the end the only result that counts for a trader, investor, speculator or gambler is "HOW MUCH DID YOU WIN" ?

No one here has claimed to be an expert...

 

Fundamentals are KEY PERIOD !!!

Everything else is NOISE !

 

If you believe that to be the key, I suggest you start a separate thread and illustrate those beliefs. There are 'fundamentals' (or your interpretation of them) all around. Instead of mentioning how "easy" and predictable this bear market was after the fact, it would be more useful to show us what is going to happen next, based on your reading of FA.

 

Look it up on a chart and you will see that ONE FUNDAMENTAL FACT and ONE MAN'S WORD created the situation where EUR/USD reversed trend from a High of 1.6000 and around August 8, 2008 it was around 1.5500 and then LOOK AT IT go down to 1.2500

 

The same things are being reiterated time over time, but when someone clearly explains the technical point of view it's either ignored or scoffed at.

 

A while ago people were on and on about how you could not have foreseen the drop in oil, and yet several people dedicated a thorough discussion to it (see posts #45 and following here: http://www.traderslaboratory.com/forums/55050-post45.html).

 

I see little point in doing the same for EUR/USD since the principles outlined in that post are basically the same. If you want to believe that one man's word can change the mind of the market where millions participate, you are free to do so. I guess Obama just hasn't found the right word yet...

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Does anyone here recall August 8, 2008 ?

 

Look it up on a chart and you will see that ONE FUNDAMENTAL FACT and ONE MAN'S WORD created the situation where EUR/USD reversed trend from a High of 1.6000 and around August 8, 2008 it was around 1.5500 and then LOOK AT IT go down to 1.2500

 

There was NO CHART in the world that showed that. Sure price movement showed it go from 1.5500 to 1.2500 SO WHAT ?

 

The FUNDAMENTAL FACT of Trichet saying we will CUT and why changed it all and not only for EUR/USD

 

I had a look at the chart anyway, and from what I can see on August 8 price had already broken below important S and was trading around 1.5255.

 

Sounds like very late entry to me, considering:

 

(a) there was a short opportunity at R when we failed to make a higher high around 1.59,

(b) there was a short opportunity when we broke the demandline at 1.58,

© there was a short opportunity when breaking S and the last swing (1.5575), and

(d) there was another short opportunity at the end of July when price turned previous S into R around 1.5660.

 

Sounds like plenty of opportunities to me. And all happened long before Trichet's announcement...

And price had already fallen 700 pips too...

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I see little point in doing the same for EUR/USD since the principles outlined in that post are basically the same.

 

May as well... :)

 

Follow the bouncing ball:

 

Trendline broken.

 

Price finds support at last swing low. Go long.

 

Price finds resistance at last swing high. Go short.

 

Price finds support at last swing low. Go long.

 

Price finds resistance at last swing high. Go short.

 

Price finds support at last swing low. Go long.

 

Price finds resistance at last swing high. Go short.

 

Price makes higher low. Cover.

 

Price fails to make new high. Go short.

 

Or do nothing at all subsequent to the trendline break and go short at the drop below 1.53.

 

All you need is a chart.

 

 

attachment.php?attachmentid=9477&stc=1&d=1234967610

Image1.gif.0ad8298bf2a15808766e5285dd0e487e.gif

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I only just stumbled across this one - interesting....I guess it shows that it takes all types to make a market.

I pay no attention to fundamentals when actually executing and managing a trade, however I do have a a big picture macro type of viewpoint of the fundamentals when planning the trade. Just so that it makes sense.....does that make sense?

Edited by DugDug

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