Hi gqguy2003, I strongly agree with you when you say the following... With that said, I'll repeat... News, geopolitical events, FED events, economic events, rumors, influences by other key markets et cetera... They are the true movers of the markets (usually not one event all by itself on a consistent basis). Notice how I did not say that News Alone move prices because I agree with you. In addition, technical Analysis is only a tool being used by many to help explain or visualize the above key market events impact on supply/demand itself. Thus, for clarification, technical analysis does not cause swing points. For example, take a look at any given swing point caused by 0830am est key economic reports. To say that TA did that and not the key economic report is odd. Yet, TA can be used to visualize what has occurred at 0830am est and to make trade decisions. TA can also be used to help explain what has happen but that explanation doesn't imply its the reason why that particular price action has occurred. Regardless, if your making consistent profits doing it your way... Keep doing it because I'm a strong believer that there's more than one way to make money in this market. However, I myself prefer to know when these key market events are going to occur so that I can be better prepared to react to the price action that results from the key market event. Therefore, key market events and understanding how much of an impact they have on the market is very important to my trading along with it dictating how I use technical analysis. Last of all, anybody with access to intraday data along with looking at the key market events at the below links can easily see on a consistent basis (not every single time) when a swing point or strong continuation price action will occur. http://fidweek.econoday.com/calendar/US/EN/New_York/year/2007/month/08/day/20/daily/index.html http://www.forexfactory.com/calendar.php How far price moves in a particular direction after the event and if a trader has the ability to exploit the price action is a different story. This answers all those common threads where we see being asking here at ET... * What moves the markets? * How do you know when volatility or volume will show up? * When are swing points, reversals or strong continuation price action most likely to occur? * What's price action only trading? * What do price action only traders use? Mark
* Treasury Yields or futures * Eurex DAX and Euronext CAC-40 * U.S. Dollar Index or Forex EurUsd I use market breadth indices (ex. VIX) only to help manage a trade after entry or for help with position size management decisions. Mark
VIX is not a market breadth indicator. Adv/Decl is tick is. VIX is a measure of the premium that traders are pricing into options. it is not a breadth thang by any reasonable definition of the word "breadth" TRIN, TICK, Ad/Decl etc. are breadth VIX is not
I use the VIX as a market breadth regardless to the fact that it measures premium that's priced into options. Simply, as I stated, I use the VIX to help with my after entry decisions or for help with position size management decisions. That alone should imply I do not use the VIX as most traders use it nor does my use have anything to do with its actual design. I've been using the VIX this way very successfully for many years regardless to what it actually measures. Just the same, I'm also a heavy user of the Advance Deline line but I not use it as it is intended but that in itself has nothing to do with my intermarket analysis. Thus, a question was asked of me about my intermarket analysis and I mention what I used without going into any details about how I use it regardless what others see them as. Mark