Cougar FX System
By // cougarfx.com
How to put this information to practical use?
Firstly, ‘Today Range’ indications tell us how much “space” left there is on a given instrument until the maximum is reached for the day. If, for example, TR shows 50pips, and ADR (5) and ADR (30) indicate 100pips, it’s very likely the instrument you’re observing will get closer to these values, providing additional 50pips of movement.
Another very important piece of information from the indications of ADR is the change of the market’s sentiment and dynamics, which can be derived from the mutual relation of ADR 30 and ADR 5. If ADR 5 is lower than ADR 30, it means the volatility prevalent on the market is currently decreasing, and a smaller price range for each day can be expected. If ADR 5 is higher than ADR 30, it means dynamics on the market are growing by the day, so you can count on greater movement range.
When to use a break even order?
An open order that generate profit can be secured by a BE order. For example, if your trade generates profit of 1R and the price moves very dynamically, you can use a BE order which will secure this transaction in case the price reversal.
A handful of advice:
– glance through the calendar of economic news before each day of trade. If there are some important ‘red’ news, it is best to wait until they are announced.
– pay particular attention to days in the calendar where the most important news are, like: non-farm payrolls, ECB press conference, FOMC. These news are crucial to the market and sometimes investors will wait outside of the market for their announcement.
– do not worry if you are late for a signal. It is better to wait for another trade than get into one that has already been on its way a long time and may very well turn back.
– As is the case with any system, trading during ‘dead’ hours is not recommended, (after European session close or bank holidays.)
– Trading should be well thought out, and our entrances supported by at least simple analysis. Please take note of the nearest support and resistance areas.
– I advise to spend the first days with the system trading on a demo account to get accustomed to its principles, learn how things work and how to use it appropriately.
Take note of individual days of the week. This is usually how a week goes:
Monday – investors get back to work and perform initial analysis (possible low dynamics).
Tuesday – an exchange of information between banks and investors gets underway, movement becomes more dynamic.
Wednesday – the market has settled for a direction and follows it.
Thursday – movement reaches its maximum level, everyone attempts to join it.
Friday – profit realization and partial position closure before the weekend (possible sudden and unpredictable movements).