Talking Points:
• A bias should not preclude a consideration of opportunities when trading a market
• Though an outlook may be generally bullish, considering what conditions and options suit a bearish scenario is wise
• We focus on the US Dollar with by bullish preference EURUSD and USDCAD, while bearish looks good for USDJPY and AUDUSD
See how retail traders are positioning in the US Dollar-based majors on DailyFX or bring the figures to your charts using the FXCM SSI snapshot.
When most traders seek setups, the first thing they do is pick a bias on the instrument they are evaluating. Bullish or bearish, this is a crucial decision to make before carving out the strategy and executing the trade. However, normal markets rise and fall over time, positions move against our expectations, and fundamental developments can turn the tides of a market. Should we therefore only trade a market in one direction and under very rigid conditions? Or, should we establish circumstances whereby we are willing to be bullish and bearish on an asset? Preferring not to limit my opportunity to trade markets further than I have to, my preference is for the latter. We discuss how to use analysis and strategy to evaluate opportunities on both sides of the US Dollar in the weekend Strategy Video.
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