Interpreting a price pullback either coming from a decline or a rally still has two sides of the coin to be looked at. And that is how we view the recent price action that occurred from the stocks and currency markets. The presence of market volatility should always be respected as it happens and be willing to adapt with its extreme price swings.
This is in connection with the related information shared on the Aftermath of Market Volatility. There will always be two angles to view the next probable direction that would take place. But it all boils down to how one interprets it and be inclined to believe.
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The practice of forward analysis should be done more often, as a reference guide while closely monitoring price action and market behavior. Back-testing a system
ReplyDeleteto determine its effectiveness can be applied to discover what could have been over-looked in the process that resulted in a negative trade effect after positioning a trade.
In the same manner, to serve as a determining factor to avoid and still be able to adapt to certain market conditions while making position adjustment that can still maneuver into a positive trade result. As this can be a basis of corrective moves which can be as effective
even before any price move occurs.
A Classic example applied in today's market condition between the USDJPY ccy pair, an ETF tracking the Nikkei 225 equity index. Where liquidity, a passive income ETF asset allocation are rolled into an effective strategy.
ReplyDeleteOn the other hand, much of our selective ETFs on equities including our DX futures contracts carry over towards the coming 2017 year have performed well above our expectations. One particular ETF (HEWJ) and the NK225 turn around prior to the USDJPY continuing market signal that registered a remarkable comeback to the 105.50 level prior to today's closing for the month was a welcome treat.
Comparative Analysis: https://www.tradingview.com/x/KLt3jK6h/
The principles of ' Cause & Effect ' translated in the market can be attributed towards the law of price action and market's behaviors as a result of the market's reaction from the actual source of information that drives the market direction. Knowing the 'Mechanics In Motion' is another key consideration in trading volatile markets. ....Sir Alexander
ReplyDeleteLink An Excellent Resource from the Tactical Investor on Market Timing
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