MARKET UPDATE 1

One of the best ways to know if operators have targeted a position for attack is to watch for relative strength.

For example, if you are in a Eurusd trade, look at all of the Usd pairs. When a position has been targeted for attack the Eurusd ( or whatever pair ) is very active with ticks moving up and down rapidly between a small range or sometimes a large range.  Now, when you look at the other Usd pairs, the pairs are hardly moving.

You know, drip, drip, squeezing out pips.  Well, think about it.  If the markets are corrolated, and they certainly are, how can one be raising hell and the other asleep?  Do you see this discrepancy?  whenever you see moves that are not natural beware and watch that position along with the other pairs of that currency.

I mean, if a currency is strong across the board but there is one laggard we need to look at our Mfi indicator and see what the Professionals are doing and where the retail herd is located. For example:

I signaled a buy Gbpusd to my trade alert group.  Of course, as typically happens after I signal a trade Gbpusd get's real active.  However, when I looked at the other Gbp pairs it's was not moving much at all. So I moved the stops out of target range.  What's target range?  Within the range of the prior swing...Outside of the swing is a potential trend change and they don't want that to go against them you can believe that!!

So, when I determine a position is in the cross hairs I may play games with the stops.  Many traders tickle the hell out of me treating stops as if they are law.  Listen, stops are like poker chips.  You only let the world see the fake out sometimes and sometimes you treat the stop like it is the law.  You don't want to set a pattern for the broker bots to hone in on.  Why do you think they call retail traders, "PATTERN DAY TRADERS"?  Because their trade decisions day to day form a predictable pattern the the professional program trading bots can zero in on to chase your stops.  You gotta think what can be done with the most sophisticated computer software on the planet and who can afford it?

but anyway, this was just a little note to help my trade alert group to understand a little about why I make certain decisions because I often get the question, "Jerry, is that how you always do it?  Of course not!!! Does the market always do the same thing the same way?  That's like asking a basketball player if he/she always makes the same moves the same way?  

There are principles, and within the principles there are options one can take which maintain the principle or go against the principle.  First you must learn, and not just know the principle.  Too many traders either want a robot or think they can trade robotically and that is the key.  It's not...

CHEERS, JERRY