Forex Trade Indecision- Doji After Doji

Considering the number of days we’ve sat “patiently waiting” for markets to make a reasonable move in either direction, as well the amount of time that’s passed since “I’ve made a decent move” I thought it might be of interest to give you a visual representation of what “sideways” looks like to me.

I’ve chosen a chart of GBP/JPY ( Great British Pound vs The Japanese Yen ) as the example.

If you’ve been brushing up on your Japanese Candle Sticks ( which I certainly hope you have ) I’m sure you already know our friend “The Doji”.

Doji –┬áDoji are important candlesticks that provide information on their own and as components of in a number of important patterns. Doji form when a security’s open and close are virtually equal. The length of the upper and lower shadows can vary and the resulting candlestick looks like a cross, inverted cross or plus sign.

GBP_JPY_Doji_Forex_Kong

GBP_JPY_Doji_Forex_Kong

You can’t trade this. It’s impossible and not even worth considering as…..there “is” no clear sense of direction. Each day has the capacity to wipe out traders on “both sides” with wild swings up and down, only to have price settle back to where it began.

What it also suggests is that markets are clearly at a point of “indecision” as neither bulls or bears are able to run to far with the ball.

Hopefully this may put the “entire month of February” in perspective for you as I’ve been “considerably less active” than usual.

Knowing what you know now……can you blame me?

I know when to put on the brakes, and when to step on the gas……

Do you?

 

 

11 Responses

  1. Farhan Nasir (@FaniNasir) March 3, 2014 / 11:48 am

    what is it with the AUD . i mean we had several USD data release and all came positive for USD , and still AUD/USD didnt even moved a single muscle ,, it should be down man ,, tomorrow i have a feeling that when rate is released it will still go up ,, -_-

    • Pot Stock Watch March 3, 2014 / 3:29 pm

      It’s bullshit Farhan…never really seen anything like it.

      AUD is the longest / hardest grind I’ve seen in a long time so – we continue to hang in the balance.

  2. Rob March 3, 2014 / 1:08 pm

    Neat post Kong, thanks. This traces back to your theme of laying low when the markets are choppy. If you don’t mind me asking, how many pairs/crosses do you look at in total? I look at a good amount and I have learned to stay away and sit tight if the market isn’t showing me much of what I like. Being that I look at a variety of pairs though, usually (not always), there seems to be an opportunity or two. Being selective is key, and fighting the urge to jump in is necessary.

    So I am just curious about the amount of pairs you trade, since I know you’re stance on being selective, it’s vital.

    • Pot Stock Watch March 3, 2014 / 3:25 pm

      I monitor ( and know like th back of my hand ) 25 pairs…..trading at least 18 – 20 of them at a given time / turn, depending where the opportunies lie.

      I can jump on any / all in a heartbeat with levels identified / characteristics / volatility all very well known, OR – sit on my ass without a trade forever.

      I monitor “everything” constantly.

  3. ezyfx March 3, 2014 / 8:47 pm

    Clearly good sell oportunities at resistance… I’m in short at 170.73 from 19th Feb after pinbar rejection of resistance at 171.80 on the 18th Feb… target ? … no idea, but at least 1,000 pips.

  4. Farhan Nasir (@FaniNasir) March 4, 2014 / 2:16 am

    now that putin has ordered troops to fall back ,, yen dropping ,, and again AUD trying to go up ,, pretty shit market ,,

  5. JSkogs March 4, 2014 / 10:36 am

    Gee this isn’t testing my patience at all haha. Yen index rounding out a bottom though. Certainly testing a trader’s resolve

    • Pot Stock Watch March 4, 2014 / 3:57 pm

      Ya it’s ridiculous isn’t it?

      He he he….I’ve just been getting out of the house more as you really can’t allow it to get to you.

      Never fails….right around the time you’ve had enough – BAM! there it is! The move you’d been planning for.

      New highs in SP…..”same old lower high in Nikkei” so……nothing changed as far as I’m concerned.

  6. Eric S. March 4, 2014 / 12:14 pm

    If you look at the $/Yuan daily, you will see that the china central bank has just handed US banks and several other large derivative trading banks a huge loss. They let the $ appreciate way outside the norm and handed them several billion dollar losses on those derivatives. They now have a stronger $ to buy more hard assets like gold, and at the same time hurt the banks.

    • Pot Stock Watch March 4, 2014 / 3:50 pm

      Yes China is throwing it’s weight around in the currency world these days.

      I’m interested to see if its a “blip” or the start of something more significant

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