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Exotics

COTD - 23/04 USDMXNToday we are revisiting the USDMXN Daily chart, in a previous COTD back in February we looked at the Daily price action and what was a potential shorter-term set up (take a look here. The Shorter-term set-up didn't pan out on the back of a weaker dollar and more exotic shift on the back of this. But as the Dollar films a little bit we are going to revisit as the longer-term set up still stands. Taking a look at the chart we can see the price is still very much contained between the two trendlines, the one we are more focused on currently is supporting bullish trendline. As we can see currently, the price is sitting on top of this particular trend line and it looks like we finding some support here, especially as the Dollar Index ticks higher. Something else of note is the Analyst forecasts for the USDMXN rate throughout 2019. With on average, Analysts forecasting the USDMXN to end the second quarter of 2019 at $19.24 and then on to $19.47 at the end of the third quarter. FX:USDMXN
Long
by Alex_GoMarkets
USDZARUSDZAR, broke out of the Daily descending trend, and created short term Higher Highs. which validated a buy setup, now we wait for the next 2 parts of the trend to confirm that momentum has shifted. Once confirmed that momentum has been shifted. we can take another buy, by breaking out of the profit taking which we are in no, utilizing the same method as before; buying on the impulse until the next resistance. If the continuation pattern doesn't form, we can take sells below Weekly support, which be a trade very long term to hold.
by TechnicalTrader123
Specialising in certain instruments or markets?Over the years I've traded many markets e.g. commodities, metals, cryptos, forex and so on. For new traders the word 'instrument' means a particular chart in a market segment. So the US30 (Wall Street) would be one instrument under 'Indices'. What I have observed is that certain instruments behave very differently to others on the same time frame. It's difficult to describe this in words on a page but I will attempt. Some instruments are more highly volatile, random, and seem to 'disobey' moving averages - whilst erratically 'obeying' some basic concepts such as trend lines, fibonaccis, support and resistance levels. But they're generally disobedient of any of the usual tools we may use. GBPMXN, CADNOK, AUDJPY - are some of these. In general the so-called exotic pairs in forex 'do their own thing'. The instruments that follow oil prices are similar in the sort of disruptive behaviour. Similar for high powered shares like Amazon and Ulta. RSIs mean nothing to them. When the move they really move. Some say this is just volatility. For sure it is. But in studying many erratic instruments over a long time, I've come to appreciate that they have a kind of personality . The more I observe these charts the randomness of their behaviour becomes almost predictable in their individual patterns (though I do not predict anything in my trading). GBPMXN and USDZAR for example fascinate me. There are many surprises and dangers with these. There are much larger losses and profits to be made though. There are some instruments that travel for miles when they get moving on daily time frames. Getting close to these instruments can bring advantages. I've heard of some traders trading only one instrument like the S&P500. They do nothing else and they say the make all their profits that way. There is a sort of common sense in that i.e. if they become experts at assessing movements of price in one instrument then they are at an advantage. I reckon that it's like any other aspect of life, where some people get into a narrow area of expertise and do it very well. I once met a man who was a specialist at sharpening saws. That's all he did for 30 years. He did his job very well and was highly valued. I've read about some folk who only build one particular kind of engine in one model of car. So what I'm getting at, is that sometimes instead of being a 'jack of all instruments', it may be advantageous to specialise in only a small handful or only one - and trading that those or that one very well. By analogy again, instead of hunting 10 different kinds of animals one can learn the behavioural characteristics of one or two and be good at hunting just those. Perhaps I could call this kind of trading 'narrow band trading'. I'm hoping that other Tradingview members can share their experiences or ideas on the above. Best wishes.
Education
by Captain_Walker