what is it turning the markets?

[JAMES BOND7]

why markets turn? when markets turn?
any ideas please?

how to catch the market turning points?
support and resistance? delta? WMT?
FIBOINACCI?
ANYTHING UNKNOWN?
is there a simple way to aim at market turning points?
please share your brain waves!

[PittsburghFX]

Hello,

The one thing you want to realize, and I am already assuming you do, is that opened ended types of questions like this can be very very confusing and create tons of obstacles ahead. Instead of tackling the entire market or even sentiment, lets look at your questions below. Indeed you have heard it said many times about trend is your friend and other great brokerage sales models, but all things considered it truly is simple logic. You just have to train your mind to filter out what you want from your trades and evaluate exactly and precisely what your willing to risk. That is the question you must truly ask yourself. How much am I willing to risk. Odds are in the past you need to at least risk 30 pips from your stop, 50 is even better, or near the Big Figure that is closest to.

For example, if the EUR is trading at 1.2215, then the next figure would technically be 1.23, but breaking it down into 50 pip increments like 1.2250 etc is very good as well.

Everyone wants to make 50 pips profit on a 100K position or bigger, yet is not willing to risk 50 pips on a 100k. You cannot do this. You must be willing to risk 50 pips, but if 100k is too big then be honest with yourself, only trade 20k or so. Or even better, have entry orders to buy or sell that will increment to a total of a 100k position. If you have 5 Entry orders with 20k a piece and all are filled you will have a much better average price and better breakeven than holding a loser and let it wipe you out. I have seen this way too much. More to come.

[PittsburghFX]

007,

The best way to describe catching market turning points are best responded as a Marine Harrier Pilot told me trying keeping his plane at a level hover consider keeping the aircraft a straight pitch. "It's like like running a race with trying to balance a nickle on your thumb. If you do it successful you earn great rewards, otherwise you crash and burn."

Catching market turns, the only way to do it would be to see to the future. This is possible, but honestly, only with experience. You have to be able to see and remember most importantly, previous price levels, fib levels, S/R, and indicator postures. Indicator postures, I best compare this the the Croc Hunter. I have seen this crazy Aussie jump on crocadiles, alligators, snakes, and tons of other deadly creatures without a scratch. I know hes not crazy because he understands the animals posture. Crocs and Sharks are easy to see before they attack. The Shark has a high back posture, the croc has an open mouth ready to get into proximity to you, rattle snakes curl up and shake their rattle!

What the heck does all this Biology have anything to do with trading? Easy, there is only one MACD. Using 12,26,9. EMA Crossovers, Stochastics, it is all the same. Before the RSI may be headed up and now is tanking. RSI goes from 50 up to 85, then starts taking a drop to 75, and for example the price may be hitting resistance at a 38.2 Fib level. So in this example you have CONFIRMATION. The order is place, stop is 30-50 pips away from the Fib price. Limit is set at a S/R price from where it came from and it trades itself out. Thats what you need to do to get started.

[PittsburghFX]

Here is a great example of what to be looking forward to towards the future. The GBP does look a little stronger since its rescent past. It could be gianing some ground and posied for a move up. But looking at the price objectively, you have to ask yourself first, where is support and resistance? Right now GBP is dead square in the middle of the move. Hitting resistance near the 1.8000 to 1.8050 Figure is quite likely. The SMA 50 is bearish, giving the intermediate trend sentiment and Stochs are starting to come together for a Over bought condition. Anything could happen, but people that are buying right now are buying way too high. In theory it is not a good value, if you will. So even though I have a good idea that GBP will strengthen, I would not be buying, rather I would have orders to average Short. My fund has orders placed, and will be wating to be executed. I am not anxious to get in, because that will kill you every time.

[JAMES BOND7]

Thanks to you for a thought provoking reply.
I am working on the things.
keep the good work going on,
feeling lucky to be on moneytec forum, with helpful guys like you around.
the example keeps me busy thinking,nice thing
thanks for your time!
James bond

[JAMES BOND7]

Please read
What is Market Timing?
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Timing is everything in today's volatile markets. However, misleading signals and ambiguous chart patterns often leave traders in a quandary over the real market direction.

"Market timing is one of the best ways to control risk."


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Market Timing:

Market timing has shown itself to be futile in every study ever conducted. The idea of market timing and the reality are night and day. The idea is very compelling. It presupposes you can be on the sidelines when the market goes down and in when it goes up. If you could do that you'd be richer than Warren Buffett. The reality is it leaves most people in the market when it's going down and not in when it's going up.

Many argue that using any market-timing tool is a waste of time.

Forecasting asset prices is a problem that has fascinated investors since the very advent of financial markets. Accurate predictions of the market movements imply fast and substantial capital gains. Attempts to forecast stock prices are numerous.

The principle objective of market timing is to provide investors with the opportunity to avoid major market price declines. Obviously, if investors can avoid weak periods in the market and participate in the strong, they can also experience superior returns over a buy-and-hold strategy. What is surprising is that studies show that investors can still outperform a buy-and-hold strategy, even if they don't participate in the strongest times - as long as they escape major market declines.

[PittsburghFX]

Yeah,

So on a daytrade long GBP this morning, but when I have profits I take them. Trailing stop is a great idea, but trying to stay nuetral is the better way, and thus the tougher way to be trading. I am looking to start averaging short. I see big resistance at the 1.82 level, I may day trade up to this point, we'll have to see. Depends upon which econ numbers are coming out and what the results are. Stochs are giving a soon to be overbought and Fib levels are at 1.82 Figure. Lets see what happens

[PittsburghFX]

Get in and then get out man!