Using a Checklist to Evaluate USDJPY, AUDUSD and AUDNZD
• When we don't trade with a plan, we do so through discretion that is often prone to disruptive emotions
• Filtering for market conditions, fundamentals and technicals can help identify pitfalls in setups
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When we trade on discretion, 'bad feelings' and 'fear of missing out' can seep into our assessments. Few of us can operate in the market with mechanical-like focus in our analysis and execution. Most market participants need a strategy and/or game plan. If a high-profile technical break or a feeling that the market is running askew of 'obvious' fundamental reality doesn't meet a definable and deeper set of criteria for identifying good trade opportunities, we can avoid an emotional decision. A filter through three critical types of analysis - market conditions, fundamentals and technicals - can help make the intangible trade decision more material. We discuss how these three dimensions can help make more pragmatic trade decisions using USDJPY, AUDUSD and AUDNZD as examples in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.