The yen decline was news related, and the lesson today is that technical indicators are of little use in the face of news surprises. But we already knew that, yes?
Forex currency pairs showing Parabolic SAR bull signals:
- AUD/JPY, analysis. Reversed with a bear signal on news. The bull signal was a FAILURE with a 2% loss.
- CHF/JPY, analysis. A further big price decline contrary to the signal. The bull signal was a FAILURE for a 1.7% loss
- EUR/CAD, analysis.
- EUR/JPY, analysis. Decline with a pps bear signal, although the psar is still bullish. The bull signal was a FAILURE for a 2.3% loss.
- EUR/USD, analysis. A pps bear signal on a decline. The bull signal was a FAILURE for a 0.8% loss
- USD/CHF, analysis. Switched to bear mode. The bull signal was a SUCCESS for a 0.9% gain
Financial consultant Leslie Masonson describes a strategy for actively trading exchange-traded funds.
A note on method: For stocks, I choose among signals, only watching those that meet a set of criteria aimed at moving the probabilities more in my favor.
For the 16 forex pairs I follow, I watch all signals, even when the trend is weak and the whipsaws likely.
New to private trading? Here's a look at How to Become a Private Trader.
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