Operators' intentions read by 
EURO and GBP made narrow range consolidation yesterday without much anticipated rise.When traders were only taking long positions after avoiding shorting the players made middle level stop hunts mostly during US session inducing the traders to cut the long positions and give to them.They nmade the lower level stop hunt for the last day of the month during Japanese session start.they are expected to go near low again during close of Japanese session and gap time and then firm up during European session.More rise to go above yesterday high could happen during this session.then during US session subuded swing to start with and slow firming up moves expected towards close for week end.The players were handling mainly the crosses,gold and USD/YEN .they could act on majors today as month end move.In that process USD is expected to gain against GOLD and YEN and lose against EURO and GBP.
Regards
Dr.Sivaraman
Dr Sivaraman,
I appreciate your methods to reduce fear but I don’t understand how to do hedging. Please can you give one example to make it more clear.
I bought half an hour ago EurUSd at 1.2748. It drops to 1.2698. I sell immediately to hedge. Now I am lost how to manage them and what stop loss, limit loss and number of trailing stops to put in. And also how to account for the 2.5 pips spread. So I need to have another 5 pips to cover spread. So how do I manage 55 pips difference.
Thank you again for making us better traders.
Hi Dr sivaraman
Hi Dr as M/S poonam mention in her post i also bought euro at 1.2700 and i didnt headge my account should i go with open long or headge my account at a level 1.2500 caause euro and gbp going downward. thx
Regards
Arun kandal
week end and month reversal?
I agree euro is near or approaching a mediate term bottom.
I also doubt there will be a dramatic reversal at least today.
it is 60pts under the Asian low not near the low any more.
more than yesterday’s high? maybe too hard.
yes, I know the reason. Players simply found more people went long.
Hi Poonam you from india?
Regard,
Arun Kandal
dear poonam
When you decide to take a position you determine about the hedging level and keep the entry stop order before hand.So that you can avoid hedging market during panic time.Once the position is hedged - wait for 10-30 min
if the hedging makes loss during observation the cut the hedging and keep another hedging order 30 pips below to limit the risk.Once the market moves toyour favor rise the hedging order until you are able tio keep stop at entry in the buy position.
If the hedging makes profit during 10-30 min observation then keep stop at entry in the hedging position.Once they stop cutting the new low for more than 30 min - you close the hedging with profit and keep another hedging order 30 pips below to limit the risk.once the buy position makes profit then keep stop at entry and remove the hedging order.Then book profit in the buy position during rise once they stop cutting the high for more than 30 min.
Regards
Dr.sivaraman
Dear arun kandal
keep the hedging order where eber you as a step to limit the risk.Then review the market and handle.When you are using hedging then it is not like stop to close the position.So you can keep tight hedging order of 30 pips and handle it as I explained above.
Regards
Dr.Sivaraman
Dear barry
the rise is the expectation derived by the forecast algorithm.So we need to experience and then find the success rate of the algorithm.
Regards
Dr.Sivaraman
Dear Dr,
Ok.
Thanks for the explanation.Actually, I care less about the actual result but the way and the reason how you predict and read the market. If it is derived by the algorithm, there will be certain ground under it. I appreciate it. Let’s see how market will react then.
Regards.
Barry
Dr Sivaraman,
Thank you very much for your guidance. Yes I will take care to plan hedging in advance and not get into panic position and so want to understand the whole process with your help.
So how do I manage hedged positions. How many times should I try this?
If I release the Sell hedge position first time (after 30 pips) and after waiting for 10-30 minutes and still not able to go near the original Buy position, I am entering 30 pips later on stop (now my loss becomes 60 pips). Should I lock the position and wait for a few hours or days to see when reversal takes place?
On the other hand, if the hedged Sell position shows profit and is way off from the Buy position (which shows 60 pips higher loss than the profit shown in the sell position), how many days or hours I need to hold the position?
How many times (maximum) I should do this hedging and up to how many pips?
Do I need to watch certain hours where gaps or false or big movements normally happen to cut the Sell position ?
Should I put my Buy position of 1.2748 as a stop loss in the hedged Sell position? And once it happens how do I cover my loss of 60 pips from Sell position?
And if the reversal doesn’t happen, and the Sell position shows profit the whole process is reversed and still the nett loss will be 60 pips. Here also I need to wait for the reversal to happen before cutting the Sell position and be ready to enter into another hedge SEll entry if the releasing of the earlier position doesn’t help me.
Please guide me. Thanks again.