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
- 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

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