FX TRADING STRATEGy
SEEING THE MUSIC OF THE MARKET An approach to viewing the markets and constructing trades
Forex markets can be very volatile. Such volatility offers both greater opportunity and added risk to the trader.
A good trade is one that offers a return that justifies the risk. It is quite easy to describe a good trade – particularly aſter the fact – but to “see” a potentially good trade before it happens is not easy.
In rapidly moving markets, analysis 64 FX TRADER MAGAZINE January - March 2012
must be done very quickly. By the time it takes to calculate the risk/ reward t\ratio of a trade it can be no longer valid due to rapidly changing price. A trader needs a system that can give them this critical data as quickly as possible.
We have been using a method for some time that seems to work very well – better than anything else we have ever seen or heard about. We call
it “seeing the music of the market”.
Music is an extraordinarily complex subject and we do not profess to be a musician, but we do like to think of the markets as having a rhythm, a tempo and an intensity – as does music. We listen to music with our ears and detect its rhythm, tempo and intensity. For the markets, we must use our eyes, observe our price charts and “see the music”.
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