Disliked{quote} Hi Danger-Mouse, I appreciate much you take the trouble to write your thoughts. Thank you. If experienced traders can contribute to share their thoughts about the question. It'll benefit many. About what you listed, the fairy tale gets more and more fancy over the years. Shall I say, they're all junk. To trade with an edge, we must know how market will value the asset in the FUTURE, aka value intent. That's why volume data at market is useless variable to determine future value - we're talking 50pips minimum. I wrote, traditional technical...Ignored
But this brings us back to the "50 pips minimum" question. I still haven't worked out why you say that is so. Is it because you've calculated that is the minimum safe distance to aim for? Maybe that is the minimum "scalp" the big boys would be interested in? But 50 pips on GJ is a much more achievable goal than 50 pips on EU (based on the percentage of move that 50 pips represents on either pair and of course their ADRs). EDIT - Don't you have to adjust this 50 figure depending on the instrument traded? 50 pips on Dow or Dax is pretty rapid
"Chat with a RICS, find out how the professionals do it in the property sector."
Well I guess that's down to location, size, quality of build, condition, current housing market etc (not that I've always agreed with surveyors lol..and have found "their" fair value efforts way off target in the past ). But I think you are making the point that to value an asset, you have to take into consideration external factors (i.e. housing market, comparative values of other houses on same street)? Does that mean before you think about taking a trade on GU, you would have to consult the dollar index...or maybe other G or U pairs? Hmm.. I got the impression from your trades lately that they were just calculated only from the past data of the instrument itself?
"The key question is how to determine if the asset will sustain current value, and whether there's upside or downside potential"
Future value..aka value intent... I have to say I'm still lost. MOL, WOL, DOL, ADR..I just can't seem to link it altogether in a consistent way
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