Discretionary Currency Trading Report Outlook
Speculative Sentiment Index Trading Signals – Our Speculative Sentiment Index trading signals have seen clear improvement as of late, as major currencies have embarked on fairly extended trends. Trading the SSI typically is most effective during strongly trending markets, and the prospect of continued price trends bodes well for these signals. Visit our Forex Trader Sentiment and Positioning Thread on the FX Forum to discuss these signals.
Picking Tops and Bottoms – This difficult-to-classify strategy has performed well as of late, and we see little reason to shift our bias away from these trades. Anecdotally, times of highly volatile ranging markets have produced poor results in these trades, while low-volatility trends will tend to improve the performance of these currency trading signals.
Pairs to Range Trade – Major currencies continue to break out of their medium term trading ranges, and we would advise against placing too much weight on range trading strategies. The typical high-risk/low-reward range trade tends to underperform in strongly trending markets.