NO MARKET VOLITILITY

Until today there was no volatility in the forex market. If you noticed there were very small ranges in all the pairs until today. You have not heard from me in a couple of days because I've been extremely busy working out the bugs out of the trade alert service just launched and I've been putting together another lesson on support and resistance for the members section for LCM students.

This lesson is very extensive and takes time to put together but it will be worth it for you I promise. some things I put together is almost like a mini book within itself.

But now, back to the market. See, on Friday there were large moves in most of the pairs that broke most support/resistance levels triggering profit taking and stops. Whenever this happens this means that most traders are out of the market because everyone has taken their profit or been stopped out.

So, the first 2 days of this week had extremely low volatility in most pairs. You've got to understand then, that operators must make many small back and forth swings to move the market in order to draw in new players into positions. Operators can't play until they have someone to play with.
When enough traders have taken positions then true moves will again start to exhibit themselves in the market. Those moves began today. I mean, how you gonna hunt stops until you have stops to hunt.

Then, most major players have been waiting for the major U.S. trade data that begins Thursday and Friday. Everything that has happened up to now has just been the setup for this data. Just know that you don't have to trade every day to make money. The less market exposure you have the less risk you have. You can't lose when you're not in the market and you shouldn't be in the market unless the market signals you to be in the market. Not because you need a fix for action or feel you're missing out on some moves. The fact is, just because a market is moving doesn't mean that movement presented a good trading opportunity. Many times a move, especially in times of low volatility, the move is just a set up to draw in enough positions so operators can meet their quota of blood when they spin the market back to it's true direction.

The farther you enter a market away from a support/resistance level the greater your risk because operators use these areas as their predator zones. They can easily swing a pair back to a support/resistance level to shake out weak hands but they take a risk of triggering the market in a direction that's not profitable to them if they take it beyond support/resistance because that starts a stampede. When the herd starts to stampede even the lions risk getting trampled.

So, I've taken this opportunity of slow motion to get caught up and organized on some things the last couple of days and my youngest daughter is graduating from high school tomorrow so family obligations have also taken up more of my time than usual. I can only hope that as much as I have given freely of my time at no cost that from time to time you will excuse a quiet moment from me.

Jerry
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