That was some week on the trading front. Big moves left and right, some predictable, some not. At any rate there is a lot going on. And not just in Forex. Gold and silver are on the move. Oil and soybeans. Stock markets are tanking at rapid click. Basically, wherever you look, there is big news. Which brings an interesting question.
Is there a way to predict one financial market based on another one? I don't mean simple correlation, we all now just about everything is correlated to smaller or larger degree. I'm talking about a situation when movement in one market, or complex, consistently precedes a move in another. Something that could be used as a basis for trading methodology. There is a company that sells a software, which claims to do just that. They advertise all over the net. They don't provide a trial, so you can't evaluate it on your own. I was contacted by these people lately. Guy sent me a snapshot of some chart that produced two trades. I asked him for charts going back long enough to see 20, 30 or 50 trades, or whatever they had available. Answer was “We don't maintain this kind of data”. They expect you spend a few grant on some software you can't try out and don't even have records to substantiate their claims.
General wisdom in Forex circles is that moves in CAD, NZD and AUD will generally be followed by European currencies. While that seems to hold water in broadest of approaches, I doubt there is a way to incorporate it in any systematic trading strategy, that produces decent results. Wouldn't it be great to have something like this: gold is trading higher in Tokyo, it means that USD will be heading lower for next 4 hours?
Well, looks like I am stuck reading charts and trading them based on individual merits or lack of.

We updated our website, just follow this link
http://www.spectrumforex.com/weeklycomments/11112007.html

What about USD-CAD? New low of 0.9058 on my platform. And then a heavy rebound. I took a few exploratory trades here. The one I posted here last week was stopped out for -82 pips. Next trial run made 122 pips. I liked what I had seen and followed it with a decent size money trade for 135 pips. I'm looking for farther breaks to the upside here.