What do you think?
The simple question here is where you think this market is heading...up or down. There is no right or wrong answer today as nobody can predict the future. But these are the kind decisions that are made by traders when identifying potential trading opportunities. The idea is for you to look at a market without any bias or opinion and to note your thoughts. This is about what you think, not what you think others will think. Write down a couple of points about the trend, support and resistance, and any potential trading opportunities you see that might set up. Then when you find out what this market is, see if that information changes your mind about your initial thoughts. If you do change your mind, then you should ask yourself if you trust this new opinion more than what you see. But of course, the real question is, do you trade based on your observation of what the market is doing or based on what you think the market should be doing? That is a big difference and is a question that has to be answered by each of us before moving up to the next level of trading. Only you know the answers to these questions and only you know what your trading results are from month to month. So only you know whether you need to change the way you approach the markets or to just improve your current approach. Be honest with yourself...be critical of your thought process...and develop a consistent approach to trading as that is what leads to consistent results.
Many of you have probably already guessed that this is a monthly chart of the EUR/USD from 1999 to today. Now what do you think?
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.