When I see articles that say markets are not what they used to be, and offer proof of this by using people like Paul Tudor Jones and other hedge fund traders who are no longer as profitable to prove their point, I have to shake my head. Our own studies show that markets are becoming more efficient with the advent of technology. And efficient from our perspective means more measured moves. This current 4-hour Euro chart is a perfect example.
One trader may say this is not a good market to be in because there is no follow thru, while we would say this is a great market to be buying dips in and exiting at a 1.5 to 2 risk/reward.
For our money "efficient" means more predictable. Each horizontal green support line represents a retracement that is the same ratio as the previous one --2/3rds.
By allowing market generated data to organize itself, and focusing on buying dips in up-trends and selling rallies in down-trends, and not allowing our own thoughts and opinions about market influences such as demographics, government, economics etc to influence our investment and trading decisions, we can greatly improve our own performance.