Inside technicals and chart patterns by 
I’m sitting in Salt Lake City Intl airport waiting for my flight to Vegas and thought I would share a few ideas from the past couple days. I was talking with a friend of mine and greattrader…and we were discussion economics and their place within an overall trade set up.
Economics, Fundamentals, News…I think they are most applicable on daily and weekly chart set ups. As a chartist I certainly don’t ignore the undercurrent of any trade I make. I think in many ways all good trades begin with an economic story that we understand. It may not be a complete picture (I don’t think that exists) but we can be as well informed as we can be. Much of that will be limited by what we UNDERSTAND.
So if a trade or an overal view of the market begins with an economic story, what exactly does tht represent?
I think for shorter time frame set ups it’s impending news. e.g. a 30 minute EUR/USD set up and NFP on Thursday night or Friday morning. For longer term set ups it can be — for example — March ‘09 Fed Fund futures and the U.S. Dollar Index futures. These are just simple examples…you can dig much deeper and look at many other correlations for getting an economic story you can wrap your brain around.
Looking at your charts with an understanding of not only the psychology but fundamentals effecting them can be helpful - just as long as you wait for price to confirm your research.
- Raghee