Strategy Video: The Strategy of Picking Tops for GBPUSD, USDJPY and S&P 500
• Picking tops and bottoms is a low probability and high payout approach
• Finding an equilibrium where the turn seems more likely and return within reach is critical
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
Picking tops and bottoms is fraught with danger. There is a reason markets trend whether speculators are following technical trends, fundamentals are generating embalances or market conditions promote a 'status quo'. However, abrupt, seismic and gradual reversals do occur. Applying strategy that takes advantage of the prevailing trends is statistically-speaking the best policy, but the opportunity of a genuine turn in the markets often presents exceptional return potential. In today's Strategy Video, we discuss some of means for confirming tops and bottoms with a specific look at the S&P 500, GBPUSD and USDJPY.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.