Geithner Talk…

To tell you the truth, I didn’t think the market would react to Geithner’s speech. But it did. A guess investor were not convinced about the new bank plan (or probably they didn’t get NEW information, which was what they were after). The fact is that the market did react to this.

What concerns us ‘Forex Traders’ is that this could trigger periods of volatility, the type of volatility that is difficult to trade: undefined ranges. This is the case for most major currency pairs. Right now its very difficult to trade based in the daily charts, because currency pairs are trading in a pretty tight range, and if you use Stop Loss orders (and everyone should use them, specially during this periods of volatility), they will get triggered.

I suggest you to trade based in the 4H or even based in the 1H charts, take small profits, but also try to find trades with small SL orders.

Anyway, be careful these days.

Good luck!

RL

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .