I know a lot of people like to discount keeping an eye on the news and only follow charts, but it definitely helps to know what is going on. It doesn't tell you which way the market is gonna go, but it does sometimes tell you in advance WHEN there could be some big action. By extension, you can also get ideas as to when the market may be dead as its waiting for pending announcements.
I follow quite a few news sources on twitter. Here are three that i think are essential:
Yes, that's correct but DX is the most influential of the currencies. I don't think its a substitute for news but when there's no news, I think what's going on with DX might be the next place to look. Currencies have all kind of global macro stuff tied to it in one big web so its really hard to pin point exact catalysts.
I'm still pretty new to trading currencies but another trader that is very good at it told me DX is the most influential as everything is tied to it and it makes sense.. My thoughts on currencies is that its not centrally traded and the resources of the traders/governments is so huge that its hard to use tools like delta, volume and etc though I use those tools on other instruments.. I currently sim trade currencies with a method that is taught to me by another currency trader that is good at it.. trying to see if I can get it to work for me..
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@Jedi what do you think of creating a synthetic dollar index that does not use the EUR/USD cross but has the same proportionate weights as the DX excluding the Euro. Then it would be less of a self fulfilling prophecy...
I'm not sure if that can isolate the cause and effect.. currencies always comes in pairs and I think currency traders have nothing but price patterns to go off because fundamentals there is always broad and murky (at least to me) unless you can hold really long term and most of us can't.. the way I see long term is in the long run, a lot can change..
The reason I'm interested in currencies is because I know other than CL, currencies is where a lot of traders find success since it can trend nicely.. not sure if its a great scalping instrument though.. CL is probably much better for that due to the volatility.. Currency seems to be an instrument with good r/r for those willing to hold.
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