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- The technical analysis tools to avoid
- Using IG client sentiment data
Talking points on this podcast:
- VPâs view on why some technical analysis tools should be avoided
- Using IG client sentiment data
- VPâs trading strategy
This time on Trading Global Markets Decoded, our host Martin Essex is joined by the creator of training site No Nonsense Forex, known simply as VP. A trader of currencies, metals, oil and ETFs, VP rails against the use of both FX news and some common charting tools, explaining why he favors a different approach to the norm.
In this episode we focus on VPâs trading strategy, whether some technical analysis techniques should be avoided, and more. You can listen to this podcast by clicking on the YouTube link above or by using one of the alternative platforms listed below.
The technical analysis tools to avoid
VP believes that the old suiteof technical analysis tools is outdated, and that modern programmers are making tools now that are more relevant to todayâs markets. So what are the technical analysis tools to avoid? He says: âIâd always see the same 12-15 charting tools, the same basic methods of trading [such as trendlines, support and resistance, Fibonacci]. I tested them all out and sank so much time into them, [and] really wanted them to outperform the new indicators I was seeing. But they didnât come close.
âMy channel is full of âself-doersâ that are willing to put in the work and find indicators themselves so they can call it their system, where it was nothing but frustration before.â
Using IG client sentiment data
Moving on, VP discusses his use of IG client sentiment data to gauge the behavior of market practitioners, and how the data can be interpreted. âIt always seems to go like this: if traders collectively are going long, for example on EUR/USD, the banks, the people who actually have the money to move price, are always going to go the other way, and IG client sentiment data does a great job of showing just how this happens.â
He uses the example of the and its rise even while commentators discuss the likely upcoming recession. â[Bearish people] say the entire economy is propped up on counterfeit money and nothing else. Every single day theyâre outraged at the price of the going up.
âBut if they were to look at the IG client sentiment data, they would see just how short everyone is.â
VP believes the rise will continue as long as general sentiment is bearish, and it wonât go down until the bulls return. âUntil that day comes, do not expect this market to drop again. Thereâs an inverse correlation to how this works, and the tool perfectly points this out.â
Ultimately, VP says that when it comes to sentiment, itâs not where people have gone [whether long or short], itâs about where people are about to go. âTrying to predict where people are going to go is really hard to do; thereâs no way you can really quantify it and I just donât recommend people do it, but I love the tool and itâs very telling in certain ways.â
For more ways of listening to the DailyFX podcast, click on one of the additional channels below.
- iTunes: https://itunes.apple.com/us/podcast/trading-global-markets-decoded/id1440995971
- Stitcher: https://www.stitcher.com/podcast/trading-global-markets-decoded-with-dailyfx
- Soundcloud: https://soundcloud.com/user-943631370
- Google Play: https://play.google.com/music/listen?u=0#/ps/Iuoq7v7xqjefyqthmypwp3x5aoi
- Spotify: https://open.spotify.com/show/6FtbTf4iGyxS0jrQ5jIWfo
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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