Wednesday, April 28, 2010

4/28 Watchlist: Forex

No new forex signals in today's scan. Three trades closed: A wash and two successes. Also, thought son the euro.


Forex currency pairs showing parabolic sar bull signals:
  • GBP/CHF, 4/21. A sharp price drop. Exiting the signal as a WASH for a 0.3% gain.
  • USD/CHF4/22, 4/23.  Added twice; the original signal disappeared and has now reappeared. Today, a pullback from a new high. Exiting the signal as a SUCCESS for a 0.8% gain.
Forex currency pairs showing parabolic sar bear signals:
  • AUD/NZD, 4/19. Pulled back down from yesterday's rise but still unprofitable.
  • AUD/USD, 4/19. Took back all of yesterday's decline.
  • CHF/JPY, 4/19. Took back half of yesterday's decline.
  • EUR/CAD, 4/21. Took back all of yesterday's decline.
  • EUR/GBP, 4/20, 4/21. Took back all of yesterday's decline.
  • EUR/JPY, 4/19. Took back half of yesterday's decline.
  • EUR/USD, 4/22. Paused at the lower end of yesterday's decline. Exiting the signal as a SUCCESS for a 0.8% gain. Why exit now? Greek debt, major crisis, fear in the streets, yes? I don't think so. I think yesterday's hammering of the euro was a huge overreaction. The only way the rich part of the EU fails to bail out Greece is if they decide to end the euro-zone entirely, and return to French francs and German deutschmarks. Not going to happen. So I'm taking profits while the profits are there.

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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.

Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic
   

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