Gaining an Edge over the Forex game of Mind, Money, & Wealth
Friday, October 03, 2008
Gold @10/03/08
Long term trends rarely reverse quickly & markets often over-shoot & tease convictions with counter moves over a period of time prior to making any sustained turn.. Recent market volatility plus wide-range inter-market instability over the past few months may be the underlying dynamics to sustain the current end games across the board..
copper-gold weekly @10/03/08
copper is on the verge of painting a Golden Bear cross after 16 months of wide-range market volatility & the CRB index had given back almost all of the multi-year gain over the last 3 months..
gold-copper weekly @10/03/08
after touching 1000 in March, gold had shifted into catch-up gear with volatile wide-range negative M/T bias & flashing weekly cluster breaks below the 21&50 week ma for the first time since the initial run-up from 2002..
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gold monthly @10/03/08
gold over-shooting 850 is exhibiting the same 1980/81 blow-off topping formation in accord with classic price~time parameters.. sustained break below 800 under the prevailing global market dynamics could accelerate deferred liquidation down to the 600 & 500 dollar zones..
Dow-Gold weekly @10/03/08
gold not only failed to regain 1000 but is also displaying sympathetic M/T bias for the ongoing mess in the global equity markets.. any near term correction in equities could further tarnish L/T convictions & induce more long & mid-term liquidation..
Trading is not an exact science contrary to the popular belief of most new or inexperience traders.. In trading, we must allow for some margin of errors within our defined risk & trading time frame.. allowing for this margin of error under the constraint of trading in micro time frames with stops & profit targets all inside a small fluctuating market noise band in hope of achieving consistent profits over time is very difficult, if not impossible.. as whenever we are right, we are only small right within the confine of the small P/L band which limit our odds to playing for break even at best over time.. Trading longer time frames allows for a wider margin of error but at the expenses of increased risk.. however, the odds of being right & achieving consistent profits over time are enhanced when good market analytics & trade management strategies are applied under the proper market bias.. When we are right, we need to ensure that we are bigger right over an expanded profit band inorder to compensate for those times when we are wrong..
copper-gold weekly @10/03/08copper is on the verge of painting a Golden Bear cross after 16 months of wide-range market volatility & the CRB index had given back almost all of the multi-year gain over the last 3 months..
gold-copper weekly @10/03/08after touching 1000 in March, gold had shifted into catch-up gear with volatile wide-range negative M/T bias & flashing weekly cluster breaks below the 21&50 week ma for the first time since the initial run-up from 2002..
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gold monthly @10/03/08gold over-shooting 850 is exhibiting the same 1980/81 blow-off topping formation in accord with classic price~time parameters.. sustained break below 800 under the prevailing global market dynamics could accelerate deferred liquidation down to the 600 & 500 dollar zones..
Dow-Gold weekly @10/03/08gold not only failed to regain 1000 but is also displaying sympathetic M/T bias for the ongoing mess in the global equity markets.. any near term correction in equities could further tarnish L/T convictions & induce more long & mid-term liquidation..
Labels: gold
Trading is not an exact science contrary to the popular belief of most new or inexperience traders.. In trading, we must allow for some margin of errors within our defined risk & trading time frame.. allowing for this margin of error under the constraint of trading in micro time frames with stops & profit targets all inside a small fluctuating market noise band in hope of achieving consistent profits over time is very difficult, if not impossible.. as whenever we are right, we are only small right within the confine of the small P/L band which limit our odds to playing for break even at best over time.. Trading longer time frames allows for a wider margin of error but at the expenses of increased risk.. however, the odds of being right & achieving consistent profits over time are enhanced when good market analytics & trade management strategies are applied under the proper market bias.. When we are right, we need to ensure that we are bigger right over an expanded profit band inorder to compensate for those times when we are wrong..
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