SELL: Why Technical Indicators don't work in forex trading
Technical indicators are very sexy for new traders and even majority of professional traders but i will take a moment to tell you why they don't work most of the time. Also Scammers who want you to believe that somehow this indicators and systems created from them are magic bullets . The truth is they are not and that's why 90% of all retail traders blow up at least 3 trading accounts before they start to figure it out
Technical indicators
- Use past data to calculate the required values or prices
- they do not forcast or predict any future values or prices
- Most of the indicators were originally used in Stocks and slowly migrated in FOREX but forex in a very volatile class of asset and is traded 24x7 on Banks network and 24x5 on Retail ECNs.
- Systems like Elliot Wave System, Pivots , GAN, etc are great but they are totally and completely useless when it comes to Forex.
- Indicators should act as sign of what might happen but not what is going to happen.
- Remember that the " PAST is not a guarantee to the FUTURE ". Technical indicators look at the PAST and try to guarantee or guess the future that's where the problem starts .
Over 92% of all major forex trading by the "BIG BOYS WITH BIG PANTS " is done using Complex Algorithms and some using Artificial Intelligence. Technical indicators are completely useless in this regards. Lots of DATA and Complex AI Mathematics is the KING.
This new breed of Complex AI algorithms does not have emotions or anything to worry about but execute trades as per the AI or complex mathematical Algorithms and forcast or predict with precise accuracy ( 60% to 98%) the future price or trends. They do this over and over and over. Whether the price shoots up or sideways or down , it does not matter, they consistently make some profits. Your technical indicators are completely garbage at this and will not help you to trade profitably.
If anyone wants to make any profits consistently start learning something to do with trading mathematics and AI by yourself. Avoid Scammers who say they have systems and are profitable.
TRUTH: No one and i mean No one will ever sell you an AI trading system or any trading system that actually makes money for them. Stop dreaming or being suckered into some of the posts here from SCAMMERS who want to make you believe that somehow you will make money by following their system or any system for that matter.
" NOPE YOU WON'T " -- Learn and understand how to trade yourself first and add some mathematics and AI to it and then just keep learning . All this is free online do not buy any garbage courses or software you see being advertised online mostly by scammers.
My Trade
SELL:
Entry: 1.1576 to 1.1608
Exits : anywhere below 1.1550
Technical indicators
- Use past data to calculate the required values or prices
- they do not forcast or predict any future values or prices
- Most of the indicators were originally used in Stocks and slowly migrated in FOREX but forex in a very volatile class of asset and is traded 24x7 on Banks network and 24x5 on Retail ECNs.
- Systems like Elliot Wave System, Pivots , GAN, etc are great but they are totally and completely useless when it comes to Forex.
- Indicators should act as sign of what might happen but not what is going to happen.
- Remember that the " PAST is not a guarantee to the FUTURE ". Technical indicators look at the PAST and try to guarantee or guess the future that's where the problem starts .
Over 92% of all major forex trading by the "BIG BOYS WITH BIG PANTS " is done using Complex Algorithms and some using Artificial Intelligence. Technical indicators are completely useless in this regards. Lots of DATA and Complex AI Mathematics is the KING.
This new breed of Complex AI algorithms does not have emotions or anything to worry about but execute trades as per the AI or complex mathematical Algorithms and forcast or predict with precise accuracy ( 60% to 98%) the future price or trends. They do this over and over and over. Whether the price shoots up or sideways or down , it does not matter, they consistently make some profits. Your technical indicators are completely garbage at this and will not help you to trade profitably.
If anyone wants to make any profits consistently start learning something to do with trading mathematics and AI by yourself. Avoid Scammers who say they have systems and are profitable.
TRUTH: No one and i mean No one will ever sell you an AI trading system or any trading system that actually makes money for them. Stop dreaming or being suckered into some of the posts here from SCAMMERS who want to make you believe that somehow you will make money by following their system or any system for that matter.
" NOPE YOU WON'T " -- Learn and understand how to trade yourself first and add some mathematics and AI to it and then just keep learning . All this is free online do not buy any garbage courses or software you see being advertised online mostly by scammers.
My Trade
SELL:
Entry: 1.1576 to 1.1608
Exits : anywhere below 1.1550
Comment:
we are still on this Trade . I still believe that all the data points show EURUSD dropping down to below 1.1527 before any sustained rally. If overall sentiment, fundamentals, Geopolitics , Economics News , Data insights and AI start changing then we will cancel the trade with small loss but for now nothing is suggesting that apart from a relief rally . The bounce will probably try to touch the previous descending triangle that it had broken at 1.1650 , if it fails then we will most likely head down and also so long as DXY stays above 94.85 we are good
SELL:
Entry: 1.1576 to 1.1628 ( i have enlarged the range , if you didn't get it in the first time )
Exits : anywhere below 1.1550
SELL:
Entry: 1.1576 to 1.1628 ( i have enlarged the range , if you didn't get it in the first time )
Exits : anywhere below 1.1550
Comment:
Note: Since there is no major economic news being released EURUSD until Friday , we are left with EURO Bulls trying to get out of their positions and push the EURUSD as much as they can. EU economic data stats have been weak so the Bulls have no good news to work with but if they can push EURUSD while there is no news , they will take it .
As traders , we work with what the market says . If the Market says Sell we will sell , if the market says buy then we buy. We have no loyalty to any camp of BULLs Or BEARs
As traders , we work with what the market says . If the Market says Sell we will sell , if the market says buy then we buy. We have no loyalty to any camp of BULLs Or BEARs
Comment:
Forex options expiring at the 10am (15.00 GMT) New York cut 8 August 2018
EURUSD:
1.1770 ==> 388 m
1.1680 / 1.1700 ==> 1.06 Bn
1.1640 ==> 502 m
1.1500 / 10 ==> 1.01 Bn
1.1500 ==> Barrier
1.1450 ==> Barrier
EURUSD:
1.1770 ==> 388 m
1.1680 / 1.1700 ==> 1.06 Bn
1.1640 ==> 502 m
1.1500 / 10 ==> 1.01 Bn
1.1500 ==> Barrier
1.1450 ==> Barrier
Comment:
hmmmm!!!! why are the EURO Bulls fighting so hard --tooth and nail to stay above 1.1600.
-- On Light Economic news
-- No major options left to expire today
-- EU Economic news has been soft for the last month especially Germany which account for almost 27% of EU economic growth
-- Italy is like a spoiled brat , she can't make up her mind on spending and cutting her debt but she still going to buy a Ferrari
-- The Dollar Index ( DXY) is stable and almost flat at the moment -- this might change any moment
May be some " BIG BOYS " have no touch option or barriers at around 1.1500 /1.1565 that they are protecting and is set to expire in coming days
-- On Light Economic news
-- No major options left to expire today
-- EU Economic news has been soft for the last month especially Germany which account for almost 27% of EU economic growth
-- Italy is like a spoiled brat , she can't make up her mind on spending and cutting her debt but she still going to buy a Ferrari
-- The Dollar Index ( DXY) is stable and almost flat at the moment -- this might change any moment
May be some " BIG BOYS " have no touch option or barriers at around 1.1500 /1.1565 that they are protecting and is set to expire in coming days
Comment:
Forex options expiring at the 10am (15.00 GMT) New York cut 9 August 2018
1.1740/50 ===> 411m
1.1720/30 ===> 393m
1.1700 ===> 614m
1.1650 ===> 217m
1.1620/30 ===> 322m
1.1600 ===> 823m
1.1570 ===> 251m
1.1550 ===> 1.05 Bn
1.1530/40 ===> 961m
1.1510/20 ===> 659m
1.1500 ===> BARRIER
1.1500 ===> 1.30 Bn
1.1450 ===> BARRIER
1.1440/60 ===> 673
Look for option magnets to possibly attract EURUSD price towards 1.1550 to 1.1500 ( we have large options expiring and also Barriers at those levels). we look for any expiring options greater than 800m which usually large to start attracting the price. The ideal is anything above 1.0 Bn.
1.1740/50 ===> 411m
1.1720/30 ===> 393m
1.1700 ===> 614m
1.1650 ===> 217m
1.1620/30 ===> 322m
1.1600 ===> 823m
1.1570 ===> 251m
1.1550 ===> 1.05 Bn
1.1530/40 ===> 961m
1.1510/20 ===> 659m
1.1500 ===> BARRIER
1.1500 ===> 1.30 Bn
1.1450 ===> BARRIER
1.1440/60 ===> 673
Look for option magnets to possibly attract EURUSD price towards 1.1550 to 1.1500 ( we have large options expiring and also Barriers at those levels). we look for any expiring options greater than 800m which usually large to start attracting the price. The ideal is anything above 1.0 Bn.
Comment:
Let's take some profits off the table now
My Trade
SELL:
Entry: 1.1576 to 1.1608
Exits : anywhere below 1.1550
Let's exit at 1.1550 and wait for another slight pop
or re-enter with very tight stop and small profit levels but i would wait for a pop
My Trade
SELL:
Entry: 1.1576 to 1.1608
Exits : anywhere below 1.1550
Let's exit at 1.1550 and wait for another slight pop
or re-enter with very tight stop and small profit levels but i would wait for a pop
Comment:
Trade goals met. Close the trade and call it a day, a good 85 pips
Comment:
close position at 1.1529
EUR/USD bulls are in control on Tuesday as buyers are pressing their bets to force the single currency to close the day near its highs.
EUR/USD is currently trying to form a double bottom with June 28 low at 1.1527. EUR/USD is now trading above its 50, 100 and 200-period simple moving average suggesting short-term bullish pressure.
Bulls objective is to breakout above the 1.1600-1.1620 area in order to reach the 1.1640-1.1649 zone. If bulls are able to maintain the price above 1.1527 the bullish momentum should persist. On the flip side, failure to hold prices above 1.1527 might signal that the bullish pullback is over and a resumption of the bear trend.
by Flavio Tosti