Good post T-bone. Hope to get to know you here in cyberland also. I like the part about "pass on the wealth to heirs". Shows good character and integrity. DRT
Thanks Steve. Sounds like you modeled your methodology around some of Elder's teachings. I did read a couple of his books some time ago. I think I have the EL code for the force index somewhere. I do not use any indicators anymore in my trading. I used to rely heavily on them. Now I just try to watch price action. Actually, I do have a couple monthly charts set up with Stochastics and MACD, but I only look at them occasionally. So I guess I am not completely "indicatorless". I just do not use them for any trading decisions.
METHODOLOGY THOUGHTS Let's start some discussion on methodology. A couple folks have asked me about this. I will try to post on-going thoughts on this in blue so we can find them a little easier. My goal here is to help those that need a little guidance, not try to change what anyone else is doing. Some of the things I say will be laughed at by the "more eduated gurus" who may visit here. I suspect some things will not even seem technically relevant or accurate. I am okay with this, as long as they don't call me names. My goal is to help you think. Not give any suggestions or answers or make any revelations. You can play along if you like, if not just ignore post in blue. DRT
The forex market exists to facilitate international trade, to hedge a companies contractual obligations that are subject to the risk of adverse currency fluctuations. It also permits the sale and purchase of currency to settle international trade deals. It is no coincidence that the growth in the fx market has been in lockstep with the rise in international trade.
To facilitate the exchange of currencies between nations, institutons, corporations, and TRADERS Correct if I am mistaken, but I'm thinking the Forex evolved from the Bretton Woods Accord, which gave birth to the International Monetary Fund. It was the IMF that mandated the free-floating of currencies, so that a currency can be traded by anybody, and that its value be a function of the current supply and demand forces in the market.
2-21 6:05 AM Price at 1.1928 Good morning everyone. I just entered short at 1.1934 a few minutes ago. The picture is not totally clear for me this morning. I still think we have to probe downward. I am fairly focused on the 1.1928 area. If this gives way, I am looking for a move down to the 1.1900 area where I see strong support. To the topside, any break above 1.1948 and I will cover. If price does move down, I will look to reverse my position and get long ideally around 1.1896, but there is solid support at 1.902 also. So I won't be stubborn but look for an exit of the short and a long entry in this area. This is a key area. I do see some signs of this not holding. I suspect there will be a decent run up out of here, but I still have the real support down around 1.1826 and I would not be surprised if we get there somehow. Good trading and I will try to update if I change my position. DRT Also, keep your eye on the USDJPY. If it moves into 118.96 this should produce a move down and a counter move up in EC. Ideally, we would reach the 1.896-1.1902 level around the same time the JPY is slamming into 1.1896. Likewise, if the USDJPY moves strongly thru this area, then we may continue on down in the EUR.
I was thinking it may be a good idea to remind everyone that I am trading EURO FX (ECH06) Not the EURUSD spot market. It can be a little confusing. http://www.cme.com/trading/prd/contract_spec_EC2465.html