The scrapping of the controls was scheduled for March this year, but now the central bank in Abuja says free trading could commence before the end of the year.

The second lesson is that there are embedded patterns even in the midst of the chaos of the moment. When a sudden breakout comes, many traders are caught off guard. But it is very useful to know that even in the apparent fury of the move there is an ebb and flow that is tradeable. In fact, the entire pattern has three phases, a pre-breakout period of susceptibility, a period of contagion and then a period of diffusion. These phases replicate themselves in multiple time frames.

A third lesson, perhaps paramount for the future, is that more than ever there are inter-market connections between forex and equities. During the subprime market crisis we could see that the USD/JPY pair had become a very accurate predictor of market moves as the USD/JPY and the DJIA moved with a high degree of synchronicity (see “In sync”).

posted by Administrator at 5:42 pm & filed under Trading Systems |