I ought to be dedicating my E-Mini campaigns to rock legends more often as it seems to instantly bestow them with extra mojo right after entry. Of course the bullish divergence I observed on our Zero indicator Friday afternoon may have been a contributing factor as it was flashing ‘bear trap’ pretty much most of the session.
It’s time to talk about Forex as the temporary Dollar rally has effectively ended and is now launching significant advances in various cross pairs. You may recall I have been anticipating this very scenario since Monday after seeing a potential floor pattern on the EUR/USD in particular [1][2]. Unfortunately however the one pertinent horse I had in play appears to be the lame laggard of the bunch, which means I’ll have to find myself a sturdy banana tree later this afternoon.
The relentless advance in equities over the past few weeks/months may have distracted us from the fact that several key markets have continued to run in circles. Attempting to take break-out entries in highly volatile sideways conditions can quickly turn into a sequence of losses. Of course the realization of this is usually only clear in hindsight as regime change is difficult to anticipate.
Market volatility in all shape and form has over the years turned into a personal passion and lies now at the heart of my current system development efforts. There are several reasons for this, the first most likely being one you probably have heard about before, which is that volatility appears to be a lot easier to predict than market direction. Your mileage of course, as with all things in life, may vary considerably plus as you slowly embark on peeling this onion you’ll discover there are many layers hiding below the surface.