Direction to trade is key to our ForexMetrics trading strategy:
Direction to Trade is based on combination of Fundamental Analysis and Global Currency Index. Direction to trade of a Currency pair suggests whether to Buy or Sell a particular currency Pair, but does not determine timing to enter or exit position/s. Following are the guidelines:
- If direction to trade is BUY and Forex Trades is TRADE, then BUY or average position based on FMTS
- If direction to trade is BUY and Forex Trades is NO TRADE, then NO TRADING as yet on that currency pair
- If direction to trade is SELL, and Forex Trades is TRADE, then SELL or average SELL based on FMTS
- If direction to trade is SELL, and Forex Trades is NO TRADE, then NO TRADING as yet on that currency pair
Direction to trade generated for individual currency pair do not necessarily mean opening a position.
Traders may or may not open a position on Direction to trade.
Decision to enter or exit position should be based on trader's own technical signals, individual risk reward ratio, risk capital and trader's own strategy.
STEP 4 Explains factors that should be considered before entering or exiting trade.
Forex Trades are for reference purpose only and not an advice or recommendation to trade.