Strategy Video: When to Trade Against Your Bias
• Maintaining a bias on a pair or currency doesn't mean we can't trade in the opposite direction
• Trade opportunities arise on different time frames or when new - if temporary - factors come into play
Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.
We should always have a bias on a currency or market so that we are ready to act when a fundamental or technical trigger catalyzes a trade setup. However, having a bias is not an unbreakable commitment to a particular trade. Circumstances can change that in turn change the probabilities of a setup. Sometimes, the development is only a temporary and short-term factor. Should we trade against our bias if a short-term opportunity arises that puts the longer-term outlook on hold? We discuss the importance of having a bias but also assessing how to trade it using my view on USDJPY and the Yen crosses in today's Strategy Video.
Sign up for John’s email distribution list, here.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.