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Originally Posted by TRADE
nothing complicated just keep it simple....a simple way to determine whether you should be long, short, in or out.
whether we like it or not, values and price have everything to do with it and mean a great deal as this is what motivates us to buy or sell in the first place. we are all using one or another derivative method to determine our market stance.
if this is fibonnacci retracements, MACD crosses or simple S&R levels then that is what determines your reality, but others have a different reality thus making this whole trading game possible.
so to say it has little to do with it is an understatement as we or our methods are not always correct in the first place, and there is not only one approach to tackle the problem......
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How many intraday traders trade on price, "euro looks cheap, I think I'll buy some". Price is just a refererence point to determine what number to enter in the stop/limit box of an order ticket. Unless you're an economist then how can you say whether a currency is cheap/expensive/fair value? Looking at price alone can be a bad practice, there are many who didn't want to buy eur/usd at 1.30 simple because of price whereas technical traders were happy to buy high and sell higher.
Looking at price may work for you and that's great, but it's not the usual entry/exit strategy used by most traders.