Friday, September 24, 2010

9/24 Forex

  • Greenback whipsaws against the Loonie, back in bear phase, but the signal is ghosting (USD/CAD).

ppspps openupper pivotlower pivot
EUR/USD US$1.35 US$1.27 sep13 US$1.31 US$1.24
USD/JPY¥84.25 ¥85.08 sep22 ¥86.06 ¥82.82
GBP/USD US$1.58 US$1.54 sep8 US$1.58 US$1.51
EUR/JPY ¥113.46 ¥112.22 sep14 ¥108.43 ¥103.21
USD/CAD C$1.02 C$1.03 sep24 C$1.09 C$1.03
USD/MXN M$12.53 M$13.07 sep2 M$13.50 M$12.72

The mad dance between the U.S. and Canadian dollars signifies little. USD/CAD moved to bull phase on Thursday, and showed bear phase today, although the latter signal has been disappearing and reappearing and a fast clip (currently, it has cheshired away and is nowhere to be seen). (Cheshired like the cat in Alice.)

The key point is that the price has been unable to move significantly below the lower monthly pivot level, for 12 U.S. market days of trying. Until the present trading range is breached, the signals mean very little.

The ghosting signal will count as real depending upon its state at the end of the U.S. trading day, a somewhat arbitrary rule.

The analysis uses the daily Person's Proprietary Signal, developed by John Person, and the monthly Person's Pivot, which he also developed.

These are black box signals -- the "proprietary" means that Mr. Person knows how they work under the hood, and I don't. But they have shown a fair degree of success in identifying good entry and exit points, and I find them useful.

On the glance, "pps open" means the price at the start of trading in the United States on the day the signal appeared.

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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