It’s “turnaround Tuesday”, the day of the week when markets traditionally find direction, but overall there is little to grasp in terms of finding any firm direction to exploit.
There has been a high level of volatility in the Forex market since the new calendar year began, particularly the “flash crash” seen in the Japanese Yen, Australian Dollar, and British Pound just before the Asian session began on 3rd January.
The very earliest part of the recent Asian session saw unusually sharp, strong and rapid price movement in the Japanese Yen, although a few other currencies including the Australian Dollar were clearly affected directly themselves.
Every now and again I look through Forex trading strategies which are getting discussed on various internet forums.
A big deal has been made in the media over the fact that the benchmark S&P 500 Index rose by just under 5% yesterday, which was its third largest daily rise of all time.
Over the past year, I’ve written a few times about how stock markets, particularly the U.S. stock market, have been looking as if they may turn bearish.
Over recent days I’ve laid out two pieces of evidence with statistics, showing how you can identify a statistically positive trading edge in major Forex pairs, and in certain commodities and stock indices.
In my previous post, I showed how it is quite simple to define a trend using two moving averages, and how you can use times where volatility in the direction of the trend is higher than average to generate a positive trend trading edge.