Day: March 18, 2016

March 18
2016

Predicting Weekly Gaps on Friday — Crazy Strategy?

The normal gap trading strategy — that is buy/sell after a weekly gap to profit from gap’s compensation — has a nice statistical evidence behind it. But what do we know about forecasting the weekly gaps based on information available to us on late Friday session? I have decided to backtest a simple trading system. The idea is to forecast the future gaps by looking at the current daily or weekly range. A trader could buy […]

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March 18
2016

Dollar Index Recovers Slightly From 2016 Low

US dollar index is recovering slightly today after hitting a 2016 low yesterday. Following send remarks, the US dollar went into a tailspin. Now, though, the greenback is trading mix against its major counterparts, the dollar index is slightly higher, thanks to a lower euro. Late Wednesday and yesterday the US dollar index lost a lot ground following the announcement from the Federal Reserve that interest rates […]

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March 18
2016

Euro Backtracks After Praet Remarks

Euro is a little lower across the board today after remarks from Peter Praet. Indications from Praet seem to contradict the decision announced by ECB last week. The euro is weaker, but it is not below the general range that it has been trading in for the last few months. Last week, Mario Draghi, the President of the ECB, indicated that they would not cut rates anymore. Policymakers would […]

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