As a new trader I’ve been sticking to one pair. EUR/USD. This allows me to focus better and not get overwhelmed by jump pair to pair. I have a few question I was hoping a more experienced trader could enlighten me on. Trading USD pairs how much if any emphasize should I put on Dollar index? I started passively following it but I wondering if I as a short term trader should continue to do so or ignore it completely and stick to MK for pulse of EUR/USD. 2. How heavy should I be follow Non Farm Payroll and JPOW speeches and other press releases and other data? Seems that before JPOW announced interest rates hikes last time the market offered several opportunities to enter before the 130 pip clean out/squeeze. Is it best for me as a beginner to wait for the dust to settle and wait for retrace? Feels like a lot DM tolerance is excepted during these big announcements. Thoughts?
Also if I’m applying or incorporating the Dollar index into trades should I be looking at correlation between EUR/GBP and GBP/USD? or ignore all and focus only on the pair in front of me. THanks
as you will quickly see the MK is very dominant. For example, look at the recent squeeze in EURUSD. Shorties came in, the market structure was dominated by these DM sellers, then the SM Algos went for the kill.
Yes, they used today’s news results for an exaggerated move up in order to reach the upper stops.
Significant economic news releases allow the SM algos to do what they planned to do, however, if the causality bias is low, then they may just follow the news results.
Yes, beginners should skip any big news.
Also check out the MK blog.