The analysis of more than one related asset class or financial market to determine the strength or weakness of the financial markets or asset classes being considered. Instead of looking at financial markets or asset classes on an individual basis, this type of analysis looks at several strongly correlated markets or asset classes such as stocks, bonds and commodities.
I thought it might be of interest to some of you to get an idea of which symbols /markets / indicators / areas I monitor – in coming up with my overall market analysis. Trust me, if you are only watching one asset class or concentrating on a particular sector or a single market, you might as well put a blindfold on, tie an arm and a leg behind you – and head down to the beach for a swim – you are sunk.
I follow the following pairs religiously and could likely quote you the given price and recent price action summary without looking at the screen.
- USD/JPY, USD/CHF, USD/CAD
- AUD/USD, AUD/EUR, AUD/CHF,AUD/JPY
- NZD/USD, NZD/EUR,NZD/JPY
- EUR/USD, EUR/JPY
These pairs are constantly monitored on every single time frame (from the monthly all the way down to the minute to minute action) – and a trade will be initiated in any one (or all pairs) at a moments notice. These pairs are viewed on the Metatrader 4 Platform that is available 100% free from many brokers online.
These symbols may look a touch cryptic to some as they are not as commonly seen / used. Please look them up – and yes..use them.
- /GC – (gold futures)
- /SI – (silver futures)
- /CL – (light sweet crude futures)
- /ES – (SP 500 futures)
- /YM – (Dow Jones Futures)
- /NKD (Nikkei Stock Exchange Futures)
- /DX (US Dollar Futures) – I beat alot of people up about watching this specifically as I trade/observe the USD against the majority of currencies on an individual basis – but yes…it’s on my screen.
I use the “Think or Swim” trading platform for all of my futures, stocks and options charting and would suggest you do the same as it too is 100% free and provides some incredible tools.
This is getting a little long so I will break it into two posts, as I still havent explained much as to “what I look for” and how all of this comes together. Not to mention the 30 or 40 more symbols I need to list. So….watch for part 2.
Kong, Just want to say hello and let you know I have been following your post here and recently at Gary’s.I appreciate the knowledge you are trying to share and “YES” there are some of us who are listening!
Hi Ronnie – Thanks man.
What would be nice, would be if you and others decided to chime in here a little more often – as to spark some interesting conversation over here where we can all speak our minds without getting blasted!
Im doin my best, and appreciate the support.
Thank you for the Metatrader 4 suggestion. I will download it–very helpful. So, as per yesterday’s post regarding the Golden Hammer, should one (if one hadn’t already), be buying gold if it closes tomorrow above yesterday’s close? Buyers definitely coming in. Is this a useful tool for you in Currency trading as well?
From a purely “technical” standpoint – the hammer formation (when followed by an additional day closing “above” it’s high) is a pretty strong and reliable signal. Again “technically” this would apply to anything being followed on a standard candle formation chart…so yes…it applies to currencies as well.
When I trade on smaller time frames _ and view currencies on a 1H chart for example- I see hammers all the time and will place an order several “pips” above the hammer. This way…if price moves in my direction -I get picked up. If prices continues downward – my order is left open and I am saved from being in the trade as prices go lower.
I know that people are always trying to “call the bottom” and get the absolute best prices – but in this fashion /method – u only get into the trade if price actually moves in your direction – hitting your buy order a couple points higher sure – but increasing your chances of being in the trade when indeed price movement is in your favor.
I wish I could tell everyone to “buy gold” but as we’ve seen – gold and the metals have been very difficult to time correctly. This sure looks good to me but again – we’ve been surprised before. I would recommmend watching it at least another full day – or even two.
Your information is very imformative, keep it going so we can all have a great trading/investing year.
Thanks alot Sargent!
Great having you on board here.