News & Analysis at your fingertips.

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.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
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
Wall Street
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Mixed
More View more
Real Time News
  • US Indices are heading lower today after misses on key data prints. DOW -1.19% NDX -1.20% SPX -1.19% RUT -1.74% $DOW $QQQ $SPY $IWM
  • Commodities Update: As of 15:00, these are your best and worst performers based on the London trading schedule: Gold: -0.55% Oil - US Crude: -2.14% Silver: -2.46% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/UlhX3chZWU
  • 🇺🇸 Business Inventories MoM (NOV) Actual: 0.5% Expected: 0.5% Previous: 0.8% https://www.dailyfx.com/economic-calendar#2021-01-15
  • $EURUSD briefly fell below 1.2100 for the first time since December 10th. $EUR $USD https://t.co/yVqkPtN0Cc
  • 🇺🇸 Michigan 5 Year Inflation Expectations Prel (JAN) Actual: 2.7% Previous: 2.5% https://www.dailyfx.com/economic-calendar#2021-01-15
  • 🇺🇸 Michigan Inflation Expectations Prel (JAN) Actual: 3% Previous: 2.5% https://www.dailyfx.com/economic-calendar#2021-01-15
  • 🇺🇸 Business Inventories MoM (NOV) Actual: 0.5 Expected: 0.5% Previous: 0.7% https://www.dailyfx.com/economic-calendar#2021-01-15
  • 🇺🇸 Michigan Consumer Sentiment Prel (JAN) Actual: 79.2 Expected: 80 Previous: 80.7 https://www.dailyfx.com/economic-calendar#2021-01-15
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 98.81%, while traders in NZD/USD are at opposite extremes with 64.00%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/0uvGHbLoet
  • Mixed bag in the crypto space...Ether (ETH) outperforming Bitcoin (BTC)...#btc #eth #xrp @DailyFX Prices via @IGcom https://t.co/LpRLnlk1cD
Forex Strategy Video: Potential vs Probability for S&P 500, GBPUSD

Forex Strategy Video: Potential vs Probability for S&P 500, GBPUSD

2013-09-20 01:08:00
John Kicklighter, Chief Strategist

Talking Points:

• 'Potential' and 'probability' are considered interchangible terms, but not for traders

• Probability is the likelihood of moving a direction, potential is just how far it could move

• We use the S&P 500 to illustrate the difference and measure the risks/opportunity of reversal

Sign up for John’s email distribution list, here.

While in a literary sense the terms 'potential' and 'probability' are similar, for traders they are anything but. The difference between these trading concepts highlight an incredible difference in trade conditions for the S&P 500. In today's Forex Strategy video, we use this benchmark equity index to describe why the dominant, four-year trend presents a clear bias; but the lower proability reversal offers a far more lucrative payout. We discuss the very elemental concept of greater return for accepting higher risk and show how you can use this same assessment for EURUSD, GBPUSD, AUDUSD and any other trade you come across.

New to Forex? Watch this Forex introduction video.

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

DISCLOSURES