ForexSpirit

Prices made a nice rise after my last one lot entry, and I exited this morning for 60 pips profit when price stated to look a bit weak. The 1.24 level was hit twice but has not been decisively broken yet.

I have been reading John Percival’s ‘Way of the Dollar’ after coming across a reference to it in April’s issue of Currency Trader. It contains some pretty interesting ideas. The majority seem to be in line with the 4×1 methodology, while some (let profits run, cut losses short) seem to be from the standard trading teachings.

I’m about half way though the book and the two most interesting insights so far are:

1. The open interest of the currency futures is a good sentiment indicator for when a currency might be at an extreme. If open interest is reaching a relative high the probability is that the current trend is running out of buyers or sellers to keep it going; meaning that the only way it can go is in the opposite direction.
2. In a ranging market, price reversals seem to almost uncannily match full and new moons. If a trend is in progress the moon’s state does not come into play.

Are these two new insights by a 30 year currency trader veteran usable on the hard right hand edge? I have the Euro futures and its open interest open on my Trade Navigator charts, so I will observe and keep track of it over the next few weeks.

I’ll keep an eye out for new and full moons when I take Kerby out for his final walk at night - which isn’t a problem as I always like to gaze at the sky for a few minutes each night. Always nice and relaxing.