1 - How do you personally time your entries when utilizing the LITA data?
2 - What forms (if any) of technical analysis do you utilize when timing your entries off of any point of LITA directional bias?
3 - Is there a particular Logik Course that details a recommended strategic approach to timing market entries off of LITA Data?
Thank you.
Hey reachchad,
For timing your entries I use the Commitments of Traders Report all day long - COTA Tech. Wait for hedge funds to agree with your fundamental idea, so you know there's enough fuel to push the markets in your favour. In the COTA Tech this is referenced as the Net Hedge Fund Open Interest Differential (NHFOI diff.) which quickly tells you whether a hedge fund is long/ short a currency pair based on COT data.
Personally, the amount of TA I've been using has exponentially decreased over the years. I mainly look to see if the price has started to actually move in favour of my trade idea and make a trend start (e.g. higher highs, and higher lows for longs, or lower highs and lower lows for shorts). Anything beyond that has never really swayed or changed any of my trading decisions from fundamental ideas.
In terms of courses, both the beginners forex trading course and currency masterclass cover this in the later modules. (sentiment analysis).
hope that helps 😃
Always a pleasure to help. As you've just enrolled on the course, I recommend that you don't place any trades until you've completed the course material - this will help eliminate any losses that you can't explain, or understand. And to summarise, when you are making a trading decision it's not just timing, the process can be thought of as:
Step 1 [WHY]. Why is it a good idea to take the trade? - Use Fundamental analysis, both isolated and relative. You need a highly defensible trade idea, with good evidence
Step 2 [WHEN]. When should you place the trade? - Use COT Report, maybe TA.
Step 3 [HOW]. How to manage the risk? - Use the ATR calculator for realistic SL and Targets based on the volatility of the pair. If any of those steps are skipped, you will get blindsided by unnecessary losses and drawdown.