Sentiment in the Forex Market: Indicators and Strategies To Profit from Crowd Behavior and Market Extremes (Jamie Saettele, 2008)

Important fundamentals
  • Nonfarm payroll.
  • Gross domestic product (GDP).
  • Trade balance.
  • Treasury international capital (TIC). 
  • Producer price index (PPI).
  • Consumer price index (CPI).
News headlines to take note of
  • "Dollar" & "surge".
  • "Dollar" & "plummet".
  • "Dollar" & "plunge".
Sentimental indicators
  • U.S. dollar index (DXY).
  • Commitments of traders (COT).
  • Chicago Mercantile Exchange (CME).
  • International Monetary Market (IMM).
  • Speculative Sentiment Index (SSI).
  • Daily Sentiment Index (DSI).
Technical analysis
  • EMA (current) = EMA(previous) + SmoothingFactor × (Price − EMA[previous])
    • SmoothingFactor = 2 ÷ (1 + n)
  • Pivot point for current = high(previous) + low(previous) + close(previous) ÷ 3
  • Momentum = price(current) − price(x periods ago)
  • RSI = 100 − (100 ÷ [1 + RS])
    • Initial RS = (total gains ÷ n) ÷ (total losses ÷ n)
    • Subsequent RS = ([previous average gain × (n − 1]) + current gain) ÷ n/([previous average loss × (n− 1]) + current loss) ÷ n
  • Fast Stochastic
    • %K = (current close – lowest low[n]) ÷ (highest high[n] – lowest low[n])
    • %D = a simple moving average of %K
  • Slow Stochastics
    • Fast %D becomes Slow %K
    • Slow %D = a simple moving average of Slow %K
  • Bollinger bands
    • Middle Bollinger Band = 20-period simple moving average
    • Upper Bollinger Band = Middle Bollinger Band + 2 * 20-period standard deviation
    • Lower Bollinger Band = Middle Bollinger Band – 2 * 20-period standard deviation
Elliott wave
  • All waves should be within 1,2,3,4,5,A,B,C
  • 9 degress of waves
    • Grand Supercycle
    • Supercycle
    • Cycle
    • Primary
    • Intermediate
    • Minor
    • Minute
    • Minuette
    • Subminuette

Comments

Popular posts from this blog

Kokology Questions & Answers

Neuro-Linguistic Programming Models Summary (02 of 14)

Neuro-Linguistic Programming Models Summary (11 of 14)