Forex Strategy Video: GBPUSD - Bullish, Bearish...or Both
• There is no certainty when taking trades, only probabilities
• Often times, there is a viable trade opportunity in 'alternative scenarios' to our preferred setups
• We look at the GBPUSD which can play out a head-and-shoulders reversal or long-term wedge breakout
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Have you ever had a trade that goes against you only to realize later the direction the market took was itself a great setup? Every trade placed is done so on a basis of probabilities and not certainty - regardless of whether its based on technicals, fundamentals, market conditions or any other facet. While we most often trade to the highest probability outcome, it is helpful to consider the elements of a trade in the opposite direction. This helps to more thoroughly vest your trades, be ready for a boardline outcome (like a weged breakout) and react to appealing trade opportunities should the situation reverse. We discuss this concept using GBPUSD as a template.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.