Strategy Video: The Process of Trend Reversals
• Trend reversals look a lot like temporary corrections in their opening stage
• Lasting market turns rarely happen as 'V'-bottoms or tops, so it is important to weigh probabilities
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One of the most common questions coming from traders, analysts and the media is whether we have seen a genuine trend reversal or simply a temporary correction. Which asset, market, theme does this refer to? Risk trends, the S&P 500, EURUSD, Yen crosses, the Dollar and numerous others are being faced with this dilemma. Determining whether we have a temporary retreat or lasting turn dramatically alters the way we approach and trade the markets. So, in the weekend Strategy Video; we discuss the process of trend reversals along with ways to assess probability though technical, fundamental and market condition analysis.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.