Extreme Complacency Grips Markets - We've Seen this Before
FXCM Expo Videos
Innovative Techniques with Traditional Technical Indicators
Trading with the Elliott Wave Principle
Seeing the Forest from the Trees: An Analysis of Global Markets
Yesterday’s comments were “in my own experience, sleepless nights and simply wanting to give up on the trade idea tend to occur just before the expected move. Understanding your own psychology is paramount in trading. That said, I am flat now after being taken out on the spike above 10605. A drop below yesterday’s low (10530) or an obvious blowoff into the trendline just below 10700 (10680/90) offers the next opportunity.” Here we are less than 24 hours later and the AUDUSD is down nearly 1% from yesterday’s high. So was an important top registered yesterday? There is no way to know but metrics strongly suggest that the AUDUSD is much closer to an important top than bottom. Consider that;
1 week and 3 month AUDUSD volatility are at their lowest levels since late July 2007
1 month volatility just reached its lowest level since late April; the lowest reading prior to late April was late July 2007
1 year volatility is the lowest since early September 2008
Complacency is at an extreme level and most traders will probably be surprised by the events that unfold over the next few weeks. Join me for a webinar at DailyFX PLUS today at 1 pm as I’ll cover this and other opportunities.
AUDUSD – Weekly Bars
Prepared by Jamie Saettele, CMT
To contact Jamie e-mail firstname.lastname@example.org. Follow me on Twitter @JamieSaettele
To be added to Jamie’s e-mail distribution list, send an e-mail with subject line "Distribution List" to email@example.com
Jamie is the author of Sentiment in the Forex Market.
Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.