Forex Strategy Video: Multiple Trade Options on EURUSD, USDJPY
• Most traders approach a pair with a plan to trade only when very specific circumstances are met
• There are multiple probabilities with any pair, and therefore we should consider multiple trade plans
• While we should choose the most probable and lucrative setup, a wise trader has plans for many scenarios
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EURUSD can go up, down or sideways. That is a fundamental principle of this and all markets. A trader simply tries to establish what the best combination of probability and payout would be amongst the array of possibilities. We should position for the setup that tenders the most lucrative opportunity, but we will miss many opportunities in our trading careers if we do not assess and establish plans for the unexpected, alternative developments. As conditions (technical and fundamental) change, what was formerly a less appealing trade option can become the best. We discuss this concept with the USDJPY and EURUSD in focus for today's Forex Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.