The truth about the financial markets
Six and a half years studying the worlds financial markets has lead me to believe that the markets are 100% manipulated exclusively by just a few big players. China, Russia, EMF, FED, BOE, some of the largest banks and to a lesser extent Swiss and Japanese governments. They get together and decide the long term moves, the rest of us just hang onto their coat tails. ( haha don't take it literally but I like to believe it and it makes trading pure charts so much easier)
You also have to understand that a large proportion of trading is executed by computer programs now, some say as much as 73%.
I don't care about fundamentals because I have devised a way to look at naked bar / candle charts and work out when a trend reversal will happen on every time frame, most importantly the monthly and weekly time frames.
The charts don't lie, we have decades of historical data and it all backs my theory up.
There are just a few things that might throw a curve ball and make the markets go "off the rails" or momentarily "wobble" as it were. Wars and International disasters like the recent earthquake in Japan ( March 2011). Even that earthquake didn't really make any long term deviations to the prevailing trends. The Japanese currency is a joke anyway because their bank steps in whever it feels necessary to protect their exporting industry. Trade it with caution. The Swiss Franc is also heavily manipulated for the same reasons by the swiss central bank.
Under normal circumstances the HUGE money is just conspiring with each other to keep the currencies just where they want them at any given time. Think about it, world economies are all interlinked, they have to try to get along and balance the books. It is just one big computer game.
Oil meanwhile seems to be the commodity that cannot be controlled, there is no common ground , the Arabs control it and they seem to hate the western world. Scary.
Trends are created by the big money and they are maintained and controlled by the big money, when they all decide to sell one currency against another, THAT is when the major trends change. For the rest of the time the smaller traders ( this includes the banks and hedge funds) just have to work out how to trade the noise created by the sharks feeding frenzy.
To be honest though we don't have to worry about any of that, as technical traders the charts tell us everything we need to know, market sentiment, momentum, volatility, it is all there in the price action. I have learned this, and I can teach you too if you like.