We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Bitcoin
Bearish
More View more
Strategy Video: Measuring Your Own Conviction to Select Trades

Strategy Video: Measuring Your Own Conviction to Select Trades

2016-04-23 00:23:00
John Kicklighter, Chief Currency Strategist
Share:

Talking Points:

  • Trade setups are always a probability - never a certainty - so finding the best terms is the key objective
  • I look for a strong combination of technicals, fundamentals and market conditions to seek strong setups
  • A strong combination offers what I call 'obnoxiously obvious' conditions, weaker 'subtle' setups are transitioning

Having trouble trading in the FX markets? This may be why.

There is a clear difference between a trade setup that you consider so obvious you cannot avoid it and one where the circumstances are so subtle as to make it dubious. Yet, where in this range are conditions strong enough to justify a trade? One of the best methods for whittling down strong trade opportunities in my book is finding those setups where you thorough analysis simply cannot come to a scenario where it will falter. That puts us in a mind frame where we recognize that there are no 'sure things'. There is always a probability that a trade will go against us, whether small or large; and that chance is often larger than we appreciate. After considering your own cutoff for actionable conditions, it is worth considering what would represent a checklist for a 'complete' opportunity. I look for trades that meet technical, fundamental and 'market condition' requirements. In this weekend Strategy Video, I walk through the process on setups from both the high water market (EURUSD, USDJPY) to those that are moving through the list to warrant action (CADJPY, GBPNZD and EURGBP).

To receive John’s analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.