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Operators' intentions read by Dr. S. Sivaraman, of i-knowindices.com

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The week beginning false move of yesterday is now understood

Posted on November 10, 2009 at 7:00 in Market comment, Market forecast, Operators' intentions by Dr. S. Sivaraman

EURO and GBP made quick rises for week beginning.The rise was identified as the players were rising and takeing sell positions before the drop.But that gave the impression that market could rise further.Today during Japanese session EURO and GBP opened lower and indicated that the players intend to make intetional move of sliding EURO and GBP.During Asian session : Live market analysis webinar I explained how they could drop then and make their intentions visible and they did it by cutting the low and holding near low in EURO and dropped about 100+ pips in the case of GBP.Now we may get the impression that yesterday we could have taken sell position.This is bould to happen to every trader -repent for the fearful time.

Today every session, EURO and GBP are expected to gain quickly some levels and then slide during rest of the sessions- swing and slide moves are expected from now.Forecast is expected to give the info before hand to take trading decision-but at the time of forecast it may appear impossible- hence forecast is needed to take trading decision.Besides the market volume  and net sellers and buyers tend to change from time to time,that we need to read from the types of market moves we see.Still to limit the risk we need to use the trading strategies to win in market which looks most of the time uncertain.

Regards

Dr.Sivaraman

37 Responses to “The week beginning false move of yesterday is now understood”

  1. on 10 Nov 2009 at 7:04 am1Adnan Butt

    Respected Dr,

    Thanks for comments

  2. on 10 Nov 2009 at 7:10 am2Gregor

    Dear dr.,

    how do you see E/G cross this week/month?

    Regards,
    Gregor

  3. on 10 Nov 2009 at 8:25 am3carlab

    Sorry Dc. I dont get the final point of expected forecast. Is it for a lower EU, if so should we revisit ydy lows around 1.4850? Tks very much.

  4. on 10 Nov 2009 at 9:13 am4Michael

    I wouldnt use the same words as Frosty and Igor, but there is a necessity to talk generally about ” predictions “. First of all, the Dr´s comments can make you more aware of the Big player´s intentions. This in itself is good to be aware of. However, instead of trying to decipher the swing and slide comments, I simply follow the price action at major pivot points ( see download in fx-knight or at actionforex )and use the volume thread knowledge at Forex Factory ( especially nyse1982 ).

    But if I were ONLY to rely on swing and slide talk I would probably get very paranoid and fearful.
    I must addtionally admit that I often do NOT understand the English sentence structure being used. In such a complex matter it is very important to simplify and clarify everything. Sunil Mangwani is living proof that this is indeed achievable by a non-English human being….:-)

  5. on 10 Nov 2009 at 9:39 am5pipso

    This forum appears to have been hijacked - no surprise there - it was bound to happen - since good Doctor is unable to forecast successfully for a long time.

  6. on 10 Nov 2009 at 9:43 am6Ritesh

    Respected Dr. Sivaraman,

    Can you guide on how to deal with higher highs beyond 30 minutes?

    For example we can sell when high is not broken for 30 minutes, however sometimes highs are broken much after 30 minutes when price have stayed below previous high, does this happens many times or have low probability?

    Maybe I’m wrong. However if this simple strategy works everytime, what we traders do wrong, maybe we’re entering at wrong levels or something else? Please guide.

    Regards,
    Ritesh

  7. on 10 Nov 2009 at 9:45 am7Dr. S. Sivaraman

    Dear Gregor
    Euro/gbp is expected to swing and slide - first to 0.88 anmd then to 0.84 area.
    Regards
    Dr.Sivaraman

  8. on 10 Nov 2009 at 9:47 am8Dr. S. Sivaraman

    Dear carlab
    Either today or tomorrow European session Euro is expected to go closer to the level you have mentioned.
    Regards
    Dr.Sivaraman

  9. on 10 Nov 2009 at 9:50 am9smith

    Doc, how big chance is for GBPUSD to drop with the daily net permissable change limit today or tomorrow?

  10. on 10 Nov 2009 at 9:51 am10j.j

    sj it looks like you dont hv any business to do and for sure you are not forex trader so would you get lost

  11. on 10 Nov 2009 at 9:52 am11j.j

    thank you Dr. Sivaraman for all the good work
    Regards

  12. on 10 Nov 2009 at 10:09 am12travis

    Oh the forecast……taken with a pinch of salt-is it?
    is it right? is it wrong?, swinging and sliding your bound to see what you wont and if you dont well be warned you have been told; “YOU GOT TO HAVE A STRATEGY, hedging!!hedging!!, then ALL WILL BE OK-wont it Dr.
    So why not try the coin toss algorithm i have developed - go long if heads and short if tails (you may choose to mix that up if it isnt working for you), but remember always HEDGE and take profit-and also beware the false move,the gap time reversal, upward extended stophunt and the old swing and slide, but as long as you know the players intentions - just remain calm - dont panic - remember the players are clever - so be careful when short covering and long liquidation cause it is trend reversal time, so when the players are rising the market we really know there true intentions is to drop drop - they are rising by selling so if we know there intentions too - we can do they same, right, so if market is rising lets build our sell positions, but hedge remember - right - cause here we are revealing there intentions.
    Together lets not be afraid of the market and earn from the market by undertanding the operators intentions.
    good trading to all
    namaste

  13. on 10 Nov 2009 at 10:10 am13Dr. S. Sivaraman

    Dear Ritesh
    In basic trading strategy - we wait fro 30 min from start of the session and if the high is not cut and the market is near high then we take a sell position and keep 30 pips hedging order to limit the risk.once the position makes profti of 15-25 pips we keep stop at entry and remove the hedging order to limit the risk to NIL.Incase during start of the session they cut the initial high and go above - we wait for 30 min from that time- if they come below initial high in less than 30 min then we understand the rise was a stop hunt above high before drop.In case if they donot cuime below earlier high in less than 30 min - we learn that they intend to rise for another 1;30 Hrs - 3 times they will cut the high and form new high to reach the net permissable limit for the day ( net change of 150 pips in euro,250 pips in GBP) then hold high and sell.During that time we can sell or close the profit making hedging and keep another hedging order to limit the risk.So we should not take unlimited risk - control emotions,limit the risk and maximize the profit to earn from market.
    Avoid taking sell position during drop or buy position during rise that may become a trap for us.
    Regards
    Dr.Sivaraman

  14. on 10 Nov 2009 at 10:22 am14Diego

    Respected doctor, when you say “high” and “low” in your previous post, you refer to the asian session early high and low, the daily high and low or the current session high and low?

  15. on 10 Nov 2009 at 10:32 am15Walid

    Yes, I would also like to know the answer to Diego’s question.
    And also when you mean the the start of the session, the first othe first 1 hour (e.g., Japanese session: 00:00 - 01:00 GMT, European: 09:00-10:00, US: 15:00-16:00) ?

  16. on 10 Nov 2009 at 10:51 am16Diego

    Walid, I think doctor calls “beginning” to the 1 1/2 hour after the session open, and “end” to the last 1 1/2 hours.

  17. on 10 Nov 2009 at 10:58 am17Greg Wilson

    Good question from Ritesh. Dr. Sivaraman’s question is clarifying. I was a bit confused about this.

    Re: Diego’s question. I’m going out on a limb: I believe Dr. Sivaraman is referring to each session initial high or low (Asian, Euro, US) vs. daily high or low.

  18. on 10 Nov 2009 at 11:00 am18Francesco

    Dear Dr.Sivaraman,

    I am placing two short increasing orders for GBPUSD between 1,6735 and 1,6778.
    Can you agree that the downtrend could resume once that area is reached?

    How do you see EUR new spike above 1,50?
    Season highs may be tested and broken?

    Regards,

  19. on 10 Nov 2009 at 11:00 am19Greg Wilson

    Error to last post. I meant to say, “Dr. Sivaraman’s reponse is clarifying to me.

  20. on 10 Nov 2009 at 11:05 am20Greg Wilson

    To Francesco,

    May I ask what your strategy is for placing GU short trade between the prices you mention? I’d really like to know. Thank you.

  21. on 10 Nov 2009 at 11:31 am21SJ

    and no doubt when the inevitable happens and Dr Short guesses, sorry, forecast come true, all his minions will proclaim his most high as the most respected and exhalt his holy name….

    Silly mortals,

    I try to lead you into the light but you revel in the darkness,

    Morons like Adnan and JJ have turned being disengaged to the truth into a zen like stupor. Get a life.

    Successful traders do not follow the advice of others. They implement their own. Do not be a sheep, lead the flock.

    If you have to get advice from this fellow, then you deserve my wrath.

    NOW MY INTENTIONS HAVE BEEN KNOWN

  22. on 10 Nov 2009 at 11:35 am22Ange

    SJ
    free speech and all is agreed.. but at the same time you have to realise this is Dr S’s blog, and you being a successful forex trader, why not start your own blog and create your own followers.. You may be right in your assessments, but people here are asking questions and clarifying their own doubts, with answers expected from the Doctor himself. So its not fair you throwing a monkey in the proceedings. Hope you understand.

  23. on 10 Nov 2009 at 11:39 am23np

    Dear Doc,
    As EUR has revisited yesterday’s high, do you think that players have exited
    their shorts at today’s lows and intend to take it higher, or is it another stop-hunt before the further drop today - what clues as to the likely scenario should we watch out for, if any.
    Thank you.

  24. on 10 Nov 2009 at 11:41 am24Dr. S. Sivaraman

    Dear Diego
    market is having 24 hrs cycle .it starts from japanmese session and end by close of US session.So the initial high and low set around 02;30-03;30 are the reference highs and lows for the day.The if the market goes above high then we need to still releate to that of initial high and new high to see how they intend to make the move.
    Today during japanese session you would have seen Euro - it has cut the initial low 1.4971 and went below to 1.4952 and in less than 30 min it came above 1.4971 - indicating a downward stop hunt before the rise.In the case of GBP it dropped below initial low 1.6734 and dropped to 1.6603 and for more than 2 hrs it is below initial low 1.6734.they come closer to initial low and then dipped.So they intend to slide again GBP.in case they go above 1.6734 and stay above for more than 30 min then they are expected to rise more.This is how we need to track their market moves using the initial high and low set for the day and also the net change of current market level.Euro rised from low but the net change is only 5-10 pips positive.So they are particular of making extended rise but trying to create bullish fell and uncertanity.
    Regards
    Dr.Sivaraman

  25. on 10 Nov 2009 at 11:42 am25SJ

    Ange,

    understand perfectly.

    but do you?

    If you saw a blind man leading a blind man. would you speak or watch the mess unfold?

  26. on 10 Nov 2009 at 11:43 am26Dr. S. Sivaraman

    Dear Francesco
    I appreciate your understanding of the trading strategy using live market quote page.You are correct in placing limit orders in GBP.Regarding Euro I have explained in my above reply.
    Regards
    Dr.Sivaraman

  27. on 10 Nov 2009 at 11:44 am27SJ

    Come on Doc, surely you must want to see me fall flat on my face.

    A one week challenge, my forecast vs yours?

    If you beat me by even one pip, I will never post anything again.

    But if I beat you by 100 pips, you must close down what i feel is a useless blog.

    Deal??

  28. on 10 Nov 2009 at 11:48 am28Dr. S. Sivaraman

    dear SJ
    Please avoid wasting your time in advising others.it is the place given by fxstreet for me to display the forecast and answer to questions to the visitors.it is up to the traders to take as additional info for their trading or just discard.i understand that you have better strategies as well.I request you to get a seperate blog from fxstreet and give your forecast and trading suggestions rather than trying to waste your precious time that may be used for your trading and understanding market.it is a private blog and if you like it you can read or just ignore.
    Regards
    Dr.sivaraman

  29. on 10 Nov 2009 at 11:51 am29Dr. S. Sivaraman

    Dear np
    the answer to your question I have given in the recorded webinar given on 09th Nov.
    Regards
    Dr.sivaraman

  30. on 10 Nov 2009 at 11:53 am30Dr. S. Sivaraman

    Dear SJ
    you have different objective than me.I am not here to challange.Please use your own blog to give your views please.
    Regards
    Dr.Sivaraman

  31. on 10 Nov 2009 at 11:55 am31Jaf

    Doc

    In your strategy do you mean the following.

    1 They did not cut high for GBp,that means they intend to slide.Would they slide to at least the low set in Japanese session.
    2.Does this apply only to Europe session.Does it mean that in american session we start again with the same criteria.If that is the case we have to close our european sessions and start again.Am i correct?

  32. on 10 Nov 2009 at 11:58 am32SJ

    My Good Dr,

    Thanks for the reply.

    I have only one objective as a trader, to make money. surely that is yours???

  33. on 10 Nov 2009 at 12:09 pm33Francesco

    Thank you Dr.,

    market seems to start sliding again, but gbp is volatile and maybe during gap times or us session that area will be seen.

    To greg wilson; as per Dr.Sivaraman’s suggestion during today’s webinar, 1,6786 is today’s high while 1,6736 is the low made during japanese session.
    Market dropped gbp quickly and may rivisit that area before dropping again, in case high is cut, that means gbp will probably rise more instead than falling.

    So I’d place two increasing short orders; this way my medium price shall be close to todays highs.if highs will be cutted I can therefore consider hedging or using a stop without big loss

  34. on 10 Nov 2009 at 12:41 pm34Dr. S. Sivaraman

    Dear Jaf
    the market moves vary from day to day.hence i am giving the expected market moves.Today it is expected to make swing and slide moves during each session.the levels cannot be perfectly determined by that system and they are derived by reading the intentions of the players from time to time.Their moves indicate whom they are trapping - either short sellers or the long holders.
    Regards
    Dr.Sivaraman

  35. on 10 Nov 2009 at 12:44 pm35Jaf

    Thanks Doc

  36. on 10 Nov 2009 at 1:08 pm36Greg Wilson

    To: Francesco. Thank you for answering my query. I missed the webinar this evening. Good post and explanation. I placed a GBPUSD sell trade when market turned around a couple hours ago at 1.6720 (entry/1.6708). So far so good. Stop loss at break even, target the low at psycho 1.6000. But I think I’ll get out now as a couple of my momentum indicators are oversold. I don’t see GBPUSD rising above 1.6740 during US session. Of course I could be wrong.

    Cheers

  37. on 10 Nov 2009 at 2:31 pm37Francesco

    Hi Greg,

    wish you a fruitful trade.
    My sell orders have not been filled, and maybe they will not be filled later on either.
    I also have a short on EURUSD opened during today’s last spike at 1,5015.
    I also have now a stop at break even point, EUR should test 1,49/4920, if it will bounce from there then I will take some profit.

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