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Tuesday, January 10, 2017

SCALPER’S ALGORITHM CONTINUED

“USDJPY: A scalper’s dream market”.


I am continuing today to highlight the scalper’s algorithm, and directly below is the first hour of trading in New York from about 8:30 A.M., with subsequent algo signals & commentary. This should give you a “feel” in addition to what is in the manual for successful scalping.





And, a little bit later after the momentum in USDJPY has once again dramatically changed for the 3rd time since last night, directly below the scalper’s algorithm from the short side.
 



Everything you want [and more], and everything every other market is watching and reacting to in real time.
 

In addition, I would also add that when the market moves dramatically in either direction, and price moves substantially away from the deviations from the algorithm mean [plum & yellow lines], you are more likely to see larger M1 corrections and also more candlesticks in the correction direction before the trend resumes, and so tread carefully with small candlestick corrections in this particular case. Not a rule, just a hint.

It’s hard to put into words what I’m currently seeing taking place in the stock indices and gold; pathetic comes to mind, but that’s really an insult to pathetic. “VIX slamming” is the current rage in the cash markets, and that has spilled over into futures & CFD’s; I have no idea what it’s going to take to get the lethargy out of stock indices; from my perspective in markets [and it’s been a long one], I haven’t seen this level of disinterest and inactivity since at least the Summer of 1992. Brokerage houses & LP’s are doing “hand stands”, so happy their spreads & commissions are making them a fortune while nothing is happening; at one point yesterday, it took 48 seconds for the SP500 to move 0.10 index point.

Gold, pretending to trade, but not really; if you watch the action closely, there is no “give and take” with bids/offers. If you get on the wrong side of this trade when USDJPY turns, it’s a nightmare scenario for your liquidation, as you become your own worst enemy selling into a sliding market. And if you’re trading any size at all, the LP will most certainly screw you like a Black & Decker drill bit going through soft wood. Add to this, I’m wondering why the New York session has basically died; I’ve seen bigger ranges on Christmas Eve. My only conclusion is the one I have talked about before; no order flow cuz retail specs have left this market in droves [and won’t be back for a long while]. In essence, you’re left sitting at the gold “poker table” with 3 other players; 1) LP bank, 2) bullion dealer, and 3) commercial hedger. Sure, explain to me how exactly you win here?

From the wonderful action in USDJPY [and did I not call this market weeks ago as the one to be in?], it looks very much to me as though the world is about to call the FEDS bluff once again … “go ahead, raise rates, I dare ya!” … unless President Trump unleashes historic economic growth, and the stats come in, USDJPY looks to be “rolling over” and the meteoric rise we saw after the election is being slowly unwound. This “fits & starts” action up here above 115 … with sprints [not jogs] to the highs, followed by just as fast moves down, tells me it’s going to take one hell of bunch of stats and hawkish “FED speak” to get traders to bid USDJPY back up over 118. I don’t see anything slowing down this “freight train” going forward in 2017; plenty of opportunity abounds in this market in either the volatility algorithm or the scalper’s algorithm.

Beach beckons … I’m outta here … until tomorrow.

Have a great day everybody!
-vegas
OPEN A DEMO AND/OR LIVE ACCOUNT [CHOOSE THE “ZERO ACCOUNT”; REFERENCE ID# 6952 WHEN OPENING YOUR ACCOUNT] AT THE LMFX LINK IN THE “DOWNLOAD LINKS” SECTION OF THE WEBSITE TITLED “OPEN TRADING ACCOUNT – DO IT NOW!”
 

 


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