What is a trigger?

[onwukarisa]

hello all ,

felix always use the word trigger? what does this mean as i have noticed that above a certain trigger he buys and below a certain one he sells/

how do i develop my own trigger?

 

[Pharaoh]

Soldier, do you see that rifle in your hands? The trigger is that thing you pull to make the bullets come out the front end!

(Sorry, I couldn't resist)


Seriously though. A trigger is the amount of deviation from expectations that is needed to (hopefully) cause a tradeable market move.

As a completely bogus example, consider this:

At 4:30 pm today, the monthly Canadian Beer Production report is due out. Expectations are for 100 million bottles. The trigger for this is 10. If production hits or exceeds the high end trigger (110 million bottles or more), that would be good for the Canadian Dollar. If production hits or exceeds the low end trigger (90 million or less), that would be bad for the Canadian Dollar.

 

[onwukarisa]

Hello Pharaoh,

then how does Felix get his triggers? does he just assume values?

 

[Pharaoh]

I believe Felix, Crazy Cat, and Sir Pips all have spent a LOT more time studying the reaction to news events over time. Don't just read today's report, look through some old ones and you'll see comments about the market reacting more or less to some triggers than it has in the past.

Follow the exact reaction of the markets to all major releases for a year, and you'll probably be able to set your own triggers that will be pretty close to the ones in the Daily Signals.

I don't personally monitor them that closely. I'm a technical trader, and I use the Daily Signals email to warn me about events that could cause sudden shifts and ruin my chart patterns.

 

[OzWizard]

No, NO its........

Soldier, do you see that rifle in your hands? The trigger is ...... (Sorry, I couldn't resist)


.....

...... the THING they will pull after 'blowing' ALL their $$ because they are playing in a field for experts & asking lame questions like that simply means they are 'sheep standing in line for the SHEARING!'

O Z

 

[onwukarisa]

Baby Boy,

In forex trading , theres nothing like lame questions. Before you got to the level you are , i guess someone taught you and you must have asked some questions? i dont think its a sin for a NEWBIE like me to ask questions like that.

Be careful

 

[Pharaoh]

Onwukarisa, try to ignore Oz. We're working on teaching him how to play well with others, but sometimes we forget to change the batteries in his shock collar. Also, he gets cranky if we don't have his favorite brand of beer in the mess hall.

Oz, try to play nice. Everybody was a newbie at some point. Part of our mission is to help new people with the simple questions so that they can try to fight back when the scammers come looking for their wallets.

 

[onwukarisa]

A Forex Robot - OzWizard?

Hi Pharaoh,

Is Oz a Forex Robot that you said you forgot to change his collar batteries.

Just Kidding

 

[Pharaoh]

Nope, he's human (we had to test his DNA to be sure). The shock collar is to zap him when he behaves badly.