In my personal opinion.. *any* system will fail. I've read through all of them and they are nothing more than subtle variations of a main theme - i.e. support and resistance.. and macd, ema lines.
Additionally, another thing I've noticed is that the authors of such systems.. when they make these e-books or whatever, conveniently show trades which are successful.. and their entries/exits are almost always *before* the ema or macd lines cross
Sure, they might work.. but I doubt they work all the time. This is just a personal opinion, before you guys swallow me. Just looking out for your best interest. Trade technicals, but watch out for any report that can screw up your trade for good.
I totally agree - I would take any "system" with a grain of salt. Even when I have used technical analysis and charting in the past, it's been more of a "one of" situation, where I've seen a really low RSI or I've seen something specific and taken advantage of it - it has never been an indicator or "system" which I have tried to consistently follow.
I got into this whole forex trading again thanks to you
Music_Producer and it has been due to the success I've had on trading the news - as a result, this will always be my primary method I think. That being said, being able to take advantage of some technical moves will be a nice complement.
Shard, tell your wife's friend's friend 'Show me the news and i'll tell you the charts'
lol.. I jest of course, but I just had to put that in here!!
Haha, no worries, I know where you're coming from! I thought you'd get a kick out of that regardless, as I found it in an intriguing quote. I know where he's coming from, but that being said, you can never ignore the fundamentals. Of course, you'll always run into technical traders who took a position based on the charts before the big Japanese interest rate announcement and then after the dust settled they're still ahead, who would then cite that the news had no effect on them, but I question whether sometimes that's just blind luck. Again, I think it's naive to ignore the news.
Then again, my wife's friend is the one living on a sailboat, not me...
One thing, can someone explain to me what "Stop Hunting" is though?
It's all about
arbitrage.
More specifically, stop-hunting is a tactic employed by institutional traders at banks, forex brokerages, etc. to drive the price into their customers' stops or the stops of other traders. Since an unscrupulous brokerage can quote its own internal forex prices, it has the ability to move its prices substantially from the normal interbank rates to trigger customer stops. The broker can then perform its own arbitrage with those stop-loss orders by clearing the currency lots obtained in its "stop hunt" at a better price with its interbank counter-party. Let's say you set a stop at 1.2855 and the broker can sell that lot into the interbank market at 1.2860 - well, in this loosely regulated market, they might just go on a "stop hunt".
Hope that helps.
