ABCD Forex Strategy

Authors: Sundeep Bilkhu | 0 Comments
ABCD Forex Strategy

Have you ever wondered why the market has the miraculous ability to move in the opposite direction of your trade? You know how it goes. You go long and the market drops. You go short and the market goes up. Even worse is the situation where, you go long and the market drops - consequently you close your position because of the loss but guess what, the market goes up again well above your long entry point, which would have put you in the profit had you kept the position open. The same applies to a short position in reverse. Does this sound familiar to you?

This does beg the question why did the market move against you?

One explanation is that highly experienced professional traders know how to trade against the crowd. They have what I call "Market Anticipation". I once read the
following in a trading article "the grandmasters of the markets are those who can anticipate where the market is going before it goes there". If only we could all do
this. Whilst 95% of traders are going long, the select few of 5% traders are going  short and selling against the crowd. If enough sell pressure occurs, it can cause
the markets to significantly drop. You must also appreciate certain price points in the market have considerable levels of resistance and support and when those
points are taken out, the market moves with momentum. When this happens and institutional investors are involved, they need to take cover to protect their
positions. This can cause a selling or buying frenzy which can cause the markets to significantly reverse.

Download eBook