Or, He Can Trade Gold
Asia has been unusually quiet these last weeks and months. Ranges and volume have been very small and light respectively. If you get into a trade you run the risk of being in it all night long with nothing really happening. That makes the trade subject to a stop hunt or random order flow.
With that in mind I got long in the Asian session and got taken out on the market coming back very quickly. Yea, it was a small profit, but the action wasn’t very good at the time. Another long position hours later yielded a small profit also, but again the market came back very quickly once we were up money in the position.
The daily range has been shrinking, making manipulation efforts easier; the smaller the range, the easier it is to get traders to panic. We didn’t even have a $19 range today [as I write].
Today’s action on the upside basically came from three 5M candlesticks, where the price went up in total about $11 in 30 seconds. So, in a 24 hour market 60% of the days range came in about 90 seconds. These gaps in prices, where one second the market is at 1653 and the next second it is at 1657, are becoming the norm in trading. And more importantly, the moves are coming from places on the candlestick charts where you would least think it likely.
“Thank you government manipulators.”
Risk management continues to be a problem in the market. Prices move so fast and violently, stop placement is hazardous. If you widen your stop, you aren’t given the opportunity, by the market through higher volatility, to make the loss back in the session.
The algorithm is performing well; all we need is more trading signals. Any type of normal daily range and we will get them. It just so happens that in the last 9 days of trading only 2 days have had a $20 range [barely] and one of those was yesterday thanks to the Fed report.
The currencies? “Oyyyyyyy.”
Wake me up when the currencies get a range; this week they are trading about 50% of normal range.
Have a good day everyone.
-vegas
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