Quote:
Originally posted by united46
Dimi
Dave Floyd who writes on trading markets and posts on here used the stock trading system you mention here. Ask him about it.
My understanding is that that approach wouldn't work in forex.
Futures trading in forex only accounts for about 2-3% of daily turnover with the main market being spot and OTC.
Contrast this with stocks where futures have a huge role. The theory behind the futures being a leader is that when a market maker sells a futures contract, he will then hedge his position in the market by buying a basket of stocks which represent the market. This buying causes price to follow in the stocks. The delay in generally short but eagle eyed scalpers can use this to make money.
As such, this system wouldn't work in forex.
Given the low turnover that futures represent, it would seem unlikely that futures would help in anyway. However, I know a lot of people do look at COT data and swear by it.
Kind Regards
DUFC
|
I've been tutored and IMM was one of the subjects. IMM is important and it works, you just have to be shown how to use it. Its like a pocket sized version of the whole
fx and its much more useful than you think because the data is more reliable.