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Deviation

Discussion in 'Beginners Bootcamp' started by Joshua8, Oct 27, 2010.

  1. Joshua8

    Joshua8 Recruit

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    How is deviation used for daily signal calculated i.e to predict the actual news release. e.g. buy at 0.2% and sell at 0.2%.
     
  2. Pharaoh

    Pharaoh Colonel

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    The minimum amount of deviation needed for a buy or sell is usually based on how prior releases of that news event went. If 0.1% didn't do anything and 0.2% or more caused significant price action, then the level would be srt to 0.2%.

    Reaction to news events varies over time. That's why Felix and those who followed him issue the daily signals - those provide information about what the minimum deviation needed for a trade is under current market conditions.
     

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