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Strategy Video: The Mathematics of Picking S&P 500, USDollar, USDJPY Tops

Strategy Video: The Mathematics of Picking S&P 500, USDollar, USDJPY Tops

2014-09-26 22:01:00
John Kicklighter, Chief Strategist
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Talking Points:

• Picking tops and bottoms is a dirty phase to experienced traders and yet a lure for speculators

• Trading reversals is possible, but it requires an appreciation of the mechanics

• We look at the simple mathematics of trading reversals and look at S&P 500,

USDollar, EURUSD and USDJPY

Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!

Some think picking tops and bottoms is a fools errand and others consider it the center of their trading approach. Correctly identifying and trading reversals can be lucrative, but they also can be severly costly. As with any other trading approach, success comes from a proper appreciation of the circumstances surrounding the method and and a robust strategy (identification, entry, risk management and behavior control). In the weekend Strategy Video , we discuss mechanics and mathematics of reversals with a view specifically to some of traders current favorites: S&P 500, USDollar, EURUSD and USDJPY.

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