MoneyTec Traders Community Forum - View Single Post - Can you Believe the 5000 pip USDMXN drop in last 48 hrs?

longtang · 04-07-2006, 13:07

Amazing move by the USDMXN in the last 48 hours. It has dropped 5000 pips from the highs!

This move was presaged by the COT data--ie the commercials are extremely long on the Peso.

The Pair went from the high of 11.5187 down to the current 11.0500. That is about 5000 pips in just a couple of days.

I mainly got interested in this pair because the COT data told me to wait for a short on the USDMXN. [If the commercials are long the Peso, then the USDMXN is going to fall.] The main key with COT data, however, is patience. The commerials trade thousands of contracts, but their perspective is based on an outlook of weeks to months. Hence, the USDMXN may have taken weeks to fall.

In this case, however, it seems like I picked just the right time to catch that fall. I am up 3800 pips from that move right now. I got in at 11.4500. I sold the pair based on the 4H and Daily negative divergence I saw at the time.

[Just to clarify: one pip of the USDMXN is equal to about $ 0.09. So, 3800 pips is worth $343.00. Any which way you look at it, it was a nice move ! {This was a paper trade.} ]

cheerios.

04-07-2006, 13:07	#1
longtang level 1 Join Date: Apr 2006 Posts: 9 Downloads: 0 Uploads: 0 Rep Power: 0	Can you Believe the 5000 pip USDMXN drop in last 48 hrs? Amazing move by the USDMXN in the last 48 hours. It has dropped 5000 pips from the highs! This move was presaged by the COT data--ie the commercials are extremely long on the Peso. The Pair went from the high of 11.5187 down to the current 11.0500. That is about 5000 pips in just a couple of days. I mainly got interested in this pair because the COT data told me to wait for a short on the USDMXN. [If the commercials are long the Peso, then the USDMXN is going to fall.] The main key with COT data, however, is patience. The commerials trade thousands of contracts, but their perspective is based on an outlook of weeks to months. Hence, the USDMXN may have taken weeks to fall. In this case, however, it seems like I picked just the right time to catch that fall. I am up 3800 pips from that move right now. I got in at 11.4500. I sold the pair based on the 4H and Daily negative divergence I saw at the time. [Just to clarify: one pip of the USDMXN is equal to about $ 0.09. So, 3800 pips is worth $343.00. Any which way you look at it, it was a nice move ! {This was a paper trade.} ] cheerios.