With Reference to USD Price & Trend Reversal
The trading landscape in the Foreign Exchange market has changed in the sense that volume trading has deteriorated based on the Bank for International Settlements report since 2010. Although, the market has maintained its status quo of being the largest USDD$4.9T per day financial market.
However, let's face it; an average trade nowadays would take at least a week or more to be able to generate a fairly reasonable or even a significant market move. Day traders and scalpers going for a price difference of 30 to 50 pips a day within the 3 trading sessions can barely wait as the market tends to pause with prices stays within a tight band. Only then after the third day or at certain times even moves on the last trading day of the week.
This is a fact; and that is why trend-following a defined currency pair, major stock index or a particular stock on hand can best be equated in a portfolio. Such portfolio always has to be governed by certain market conditions that prevails within the overall market. Pinpointing meaningful stocks from defined sectors that would be outperforming the rest of the pack from a due diligence research.would best serve this purpose.
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