DislikedI have learnt that scenario trading is key to long-term trading success. You anticipate alternative market scenarios and look for a feasible trade setup as the market meets one of the scenarios. What about you?...KPIgnored
DislikedTraders often go into the market with a bias, at least a directional bias. But creating alternative scenarios; e.g. based on ranging, bullish and bearish market mode, is a largely safe-proof approach to the market. Based on the scenarios created, an 'if-then' strategy is developed to deal with whichever scenario the market eventually presents. Trade safe and prosper. KP {quote}Ignored
Each poster is free to use their tools and techniques for reading, analyzing and forecasting the markets but the focus of this thread is on the major pairs: EURUSD, GBPUSD, USDJPY, AUDUSD, USDCAD, USDCHF and NZDUSD.
Here's an example of what we should be looking for and doing on this thread but each poster is free to use their own writing style.
Price action on GBPUSD is currently in a strong reaction zone (1.37390/1.42920) that has held on a multi-year basis (See attached W1 chart). Bulls are likely to struggle to break the zone northward. Should bulls break out of this zone, there is likely to be a strong bullish continuation. But, based on the major trend, which is southward, any upward momentum is likely to be corrective, perhaps to target the 1.46790 area. Should bears wrestle the initiative and flip the zone, we may see a strong bearish momentum with bears targeting the immediate support zone around the 1.34810 area initially.
I may be wrong. Trade safe and prosper.
KP
Attachment g
Disclaimer: This is neither a signal service nor a provision of trading advice or trade calls. It is basically to share market analyses and predictions/probabilities with fellow traders. Each trader should trade based on their own rules and market judgments.
Do your homework, follow the footprints of smart money