10.3 SCALPER/RANGE TRADE SYSTEM

[kwanann]

Those Monthly R lines I showed last page are very key to knowing where JPY can go next. Those pairs that have broken the R line can retrace and test it. Old resistance becomes the new Support. The other pairs that have not broken yet may bounce a couple of times before they do. So the Fundamentals of the new govt. is to depreciate the JPY however, they have to implement it. So you may see price hug those R/S line until then.

nanningbob,

Sorry if this sounds stupid, but if i understand what you are saying correctly, it means that so far all the swings are done by traders rather than by BOJ?

The market seems to be slowing down now guess its time for me to take a breather as well

[nanningbob]

Those Monthly R lines I showed last page are very key to knowing where JPY can go next. Those pairs that have broken the R line can retrace and test it. Old resistance becomes the new Support. The other pairs that have not broken yet may bounce a couple of times before they do. So the Fundamentals of the new govt. is to depreciate the JPY however, they have to implement it. So you may see price hug those R/S line until then.

nanningbob,

Sorry if this sounds stupid, but if i understand what you are saying correctly, it means that so far all the swings are done by traders rather than by BOJ?

The market seems to be slowing down now guess its time for me to take a breather as well

There are many dynamics in Forex:
#1 and you must always remember this, Forex is not about traders. Traders only make up maybe 5% of all transactions. Traders only move the market for very short periods of time and then not that much. 100 pips is nothing more than a penny. That is nothing when it comes to real money.
#2 Forex is the exchange of business between countries through banks, businesses, and govt. Despite all the hand wringing about the eur it only moved 44 cents between its high and low over the last 4 years. Makes a lot of news but really not that big of a deal. So I pay 50 cents more for a product. Yes that is a an affect but still livable.
#3 What really moves the market is long term govt. policy when it makes a shift you notice and follow the direction govt. wants to take it. That is why I put notice on the JPY govt. decisions right now. They want a major shift in monetary policy.

For example this chart shows the eur/usd Notice the change when President Bush took over and when President Obama took over. That was a major shift in Govt. policy. That is what may happen with the JPY. President Bush's economic policy's did nothing more than cheapen the dollar until the economy broke down. Under Obama it has stabilized for now. Not wishing to get into a debate here but the charts tell the story clearly. JPY now wants to depreciate their currency and kick their economy going much like Bush did in the last decade. That will influence the price probably for years to come. The immediate affect for the next few months should be a real benefit to traders that understand this.

[whitegoodman]

I wouldnt attribute Fiscal policy as a major dictator on currency movements... Obama and Bush essentially have the same economic plans in practice not rhetoric

I think monetary policy and transfers at central banks play a much more important role in that period, however in the future the relationship between govt solvency, treasuries markets and the link with currency markets may come into play

[whitegoodman]

I need to find my original explanations of the jump EA along with MM notes. I cant remember what pages those were on. I explained how to increase your win:loss ratios and how the jump EA improved them.

was the based on a visual backtest or looking back at a few years data?

[nanningbob]

I wouldnt attribute Fiscal policy as a major dictator on currency movements... Obama and Bush essentially have the same economic plans in practice not rhetoric

I think monetary policy and transfers at central banks play a much more important role in that period, however in the future the relationship between govt solvency, treasuries markets and the link with currency markets may come into play

I agree but that isnt the point. The point is when govt. makes a major policy decision as Forex traders you take notice. I dont want this to bog down into a debate of govt. policy just take note of the govt. policy change.

[nanningbob]

I need to find my original explanations of the jump EA along with MM notes. I cant remember what pages those were on. I explained how to increase your win:loss ratios and how the jump EA improved them.

I want to introduce to you one of my trading friends from way back. WhiteGoodman was a person I learned a lot from in our early years at FF. He can be a real resource so listen to if he makes a comment. We are making some money with this simple system so welcome.

I found the ratio paper so I will rewrite it for this edition and put it in the first update on page 1.

[whitegoodman]

ill start running some visual tests on the futures spreads and outrights I trade and post some pretty charts once ive had some sleep see if this method has some legs on other markets

[censura]

Hi on the tmanorm is anyone else getting the expert log filling up with error message unknown subwindow -1 in objectcreate

[nanningbob]

I had a nice Euro session. 4 winners 3 losers however, my average loss -4 pips a trade and average winner +16. The only bad thing that happened is the gbp/nzd went over 100 pips but the Jump EA took me out at +12. All three of my losers would have hit the -18 with out the jump EA so I lose some there but am happy so far. So +64 -12 for +52. I increased my account though by +.8% I will watch a movie with my wife and see what is up for the USA session.

[monty]

Hi on the tmanorm is anyone else getting the expert log filling up with error message unknown subwindow -1 in objectcreate

Yes.
Same here.