Hello, may I know why EURDKK 4HR candlestick chart always have long tails or long head?
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When the Joker is in the deck.. fear not and play it well
EURCZK, EURDKK, and other euro pegged currencies 4 replies
This should be funny... "before you new the trading talk" 9 replies
funny thought... 7 replies
DislikedDKK is is pegged with horizontal bands to the euro, meaning there is a lot of central bank intervention. Any significant deviation from the specified rate (which is set at 7.45, with a maximum bandwith of a some percents) will be offset by the Danish central bank. Because there is this extreme tendency for mean reversion, this could possibly explain the long wicks.
Also, low liquidity of this pair might explain strange behavior on retail brokers' charts.Ignored
DislikedThank you for your explanation. Then we can easily earn money from this pair?Ignored
DislikedThat would depend on the spread costs for transaction both opened and closed and whether the average price fluctuations from the mean are greater than the spread, plus accounting for slippage and other outside factors means that trading an exotic pair such as this will have severe limitations provided you can find a suitable broker.
Nothing is easy in forex, nothingIgnored
DislikedThat would depend on the spread costs for transaction both opened and closed and whether the average price fluctuations from the mean are greater than the spread, plus accounting for slippage and other outside factors means that trading an exotic pair such as this will have severe limitations provided you can find a suitable broker.
Nothing is easy in forex, nothingIgnored
DislikedThat would depend on the spread costs for transaction both opened and closed and whether the average price fluctuations from the mean are greater than the spread, plus accounting for slippage and other outside factors means that trading an exotic pair such as this will have severe limitations provided you can find a suitable broker.
Nothing is easy in forex, nothingIgnored
Dislikedi just had a look at the Oanda charts for it. From what I can see the average daily range for this pair looks tiny, in most case less than 30 pips with a 6 pip spread and it has been range bound for the past few months which makes profiting almost impossible. Even with a phenomenal edge you would find this pair an extremely expensive pair to extract any long term profits.
RTIgnored
DislikedI have checked 4hr EURDKK chart in IBFX AUstralia, once the candlestick differ from open price for 30 pips, then you could buy or sell in order to go back open price direction.Ignored
DislikedThe average range for the day might be 30 pips but thats from high to low so in your case you would be waiting along time for the range to open at a price and move the entire range or more in your favour before getting an order in. This limits you because you have only 1 trade every now and then, there is no guarentee that you will get the move back in your direction and therefore if it is the only cross you are going to trade then if you get a lost trade it will become difficult to make back depending on the parameters you employ.
Too little...Ignored
DislikedTheoretically, exchange rate bounds can be traded profitably by shorting when prices approach the upper barrier, and going long when it reaches the lower barrier. However, don't expect there to be a free lunch.Ignored
DislikedIndeed.
True story about the italian lira breaking out of the central bank "bounds":Ignored
DislikedI'm not surprised by the banker's reaction that they can't sell option with strike prices beyond the bounds, provided the trader lacked understanding of economics and the instruments he was selling. Let's be honest, many market makers just provide some inputs for their proprietary pricing models, and the computer spits out the option's value. The common models that these banks employed probably weren't capable of estimating these virtually impossible (and thus highly improbable) events.Ignored