US Dollar Forex Trading Program: 07/11/2013
US Bond Postscript / A note on using Elliott before news events
Elliott attempts to describe, in detail, current market structure. It's not the news itself that moves markets but the reaction to the news. If you have a sense of current market structure then you have a sense of what a reaction to news might look like. Yesterday's US Bond post exemplifies a favorable situation for an Elliott trader. The market had come into big support from the March 2012 low, volume had actually declined every week since the last week in May, and the bond had rallied in 5 waves from the low...suggesting that market psychology had turned a corner. Risk was defined as Monday's low. This setup worked but not all setups do, which is why stops are paramount....so use them!
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