Position Trading Foreign Currency Pairs (Forex)
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The 12-day baseline HAS definitely rolled over at this point. So, how much lower is this pair likely to drop?
Now up to 137.48.
Applying NPP to position trading looks to be turning out pretty well. However, I find it very boring.
This should make it a bit more interesting, at least for the time being...
Now that NPP seems to truly be fully developed, I've returned to my manuscript for the purpose of finally finishing my book, and the first change I've made is to include a specific strategy for position trading foreign currency pairs, which I will start using to forecast price action based on the corresponding computer models beginning tomorrow.
(The purpose of these forecasts will be to test the validity of the position trading strategy described in my book. I will be interpreting the measures on my four-hour charts, so when I mention "instantaneous moving averages," I will be referring to the four-hour baseline.)
AUDJPY
NPP recommends passing on any trades related to this pair in the the four- and 12-day price range envelopes are more-or-less neutral. But that being said, I will be looking for an opportunity to buy this pair in the near future, even though the Aussie-Yen saw its four-day measures turn south last week.
The reason for this is that the rate has made contact with the very bottom of its projected four-day price range envelope(s), AND will shortly be entering the statistical support level of the 12-day measures as well, which presently stretches from 88.652 down to 84.968.
The buy signal(s) will be when the one- and or two-day baseline(s) turn north.
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AUDUSD
The four-day measures have been bearish for four or five weeks now, and the 12-day measures for one or two weeks. This pair is therefore a sell (without question) whenever the instantaneous moving averages come out of pullbacks behind the one- and/or two-day baselines. At this point, the ideal setup would be to enter a short position should the rate climb at least as high as 0.66772, and then turn south again.
EURUSD
The Euro-U.S. dollar is in a similar situation, though its measures are not quite as bearish.
The four-day measures have been bearish for four or five weeks now, and the 12-day measures for one or two weeks. This pair is therefore a sell (without question) whenever the instantaneous moving averages come out of pullbacks behind the one- and/or two-day baselines. At this point, the ideal setup would be to enter a short position should the rate climb at least as high as 0.66772, and then turn south again.
EURUSD
The Euro-U.S. dollar is in a similar situation, though its measures are not quite as bearish.
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EURJPY
From a position trading perspective, everything about this pair is bullish. However, price is currently headed south, so it is a strong candidate for a long position as soon as the instantaneous moving averages turn north again, especially if the rate drops down to somewhere around the 142.449 neigborhood.
EURGBP
The Euro-Pound is in a similar situation, except the measures are not near as bullish. In fact, it could be argued that they are pretty much neutral at the moment. So then, the rate becomes a stronger buy candidate the closer price gets to 0.87399.
The extreme bottom of the projected four-day price range envelope is currently at 0.85778, and the extreme bottom of the projected 12-day price range envelope is presently at 0.82228.
From a position trading perspective, everything about this pair is bullish. However, price is currently headed south, so it is a strong candidate for a long position as soon as the instantaneous moving averages turn north again, especially if the rate drops down to somewhere around the 142.449 neigborhood.
EURGBP
The Euro-Pound is in a similar situation, except the measures are not near as bullish. In fact, it could be argued that they are pretty much neutral at the moment. So then, the rate becomes a stronger buy candidate the closer price gets to 0.87399.
The extreme bottom of the projected four-day price range envelope is currently at 0.85778, and the extreme bottom of the projected 12-day price range envelope is presently at 0.82228.
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GBPJPY
The Sterling-Yen is undoubtedly bullish, so it is a candidate for a long position as soon as the instantaneous moving averages resume heading north, especially if price manages to drop down somewhere around the 161.055 neighborhood.
GBPUSD
The Cable-U.S. dollar is just the opposite of GBPJPY.
The Sterling-Yen is undoubtedly bullish, so it is a candidate for a long position as soon as the instantaneous moving averages resume heading north, especially if price manages to drop down somewhere around the 161.055 neighborhood.
GBPUSD
The Cable-U.S. dollar is just the opposite of GBPJPY.
USDCAD
The U.S. dollar-Loonie is very bullish from a four-day perspective, and it just saw its 12-day price range envelope turn bullish last week. However, it has already surged, and whats more, it has a significant "statistical" resistance level just above it @ 1.38731. Consequently, I wouldn't even think about buying this pair until AFTER it starts to come out of a significant pullback. (It's also presently located at a horizontal resistance level/zone, as established from September through November of last year, 2022.)
USDCHF
Whoa! This baby took a dive! The four-day measures have been bullish, and the 12-day measures recently turned slightly north, so this pair is a strong buy candidate as soon as the instantaneous moving averages hook upward.
USDJPY
The U.S. dollar-Japanese yen is even more bullish than the Dollar-Chief, so it too is a strong buy candidate as soon as the four-hour baseline resumes a northbound trajectory.
The U.S. dollar-Loonie is very bullish from a four-day perspective, and it just saw its 12-day price range envelope turn bullish last week. However, it has already surged, and whats more, it has a significant "statistical" resistance level just above it @ 1.38731. Consequently, I wouldn't even think about buying this pair until AFTER it starts to come out of a significant pullback. (It's also presently located at a horizontal resistance level/zone, as established from September through November of last year, 2022.)
USDCHF
Whoa! This baby took a dive! The four-day measures have been bullish, and the 12-day measures recently turned slightly north, so this pair is a strong buy candidate as soon as the instantaneous moving averages hook upward.
USDJPY
The U.S. dollar-Japanese yen is even more bullish than the Dollar-Chief, so it too is a strong buy candidate as soon as the four-hour baseline resumes a northbound trajectory.
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