FX Spotlight: Indicator of the Day (Consistency)


Many emails have come in overnight questioning our current EUR/USD short position in light of the event risk later in the day. So, I guess it would be best to defer from the regular “indicator of the day” talk to address this issue. The simple answer is to be “consistent” in your trading approach. If you are consistent with your trading, then you will afford yourself the opportunity to benefit just as much as you suffer when trading through event risk. Conversely, if one determines that he or she does not feel comfortable with an open position ahead of event risk, then he/she should be consistent in mitigating risk and removing positions or not taking positions ahead of the risk. If for nothing else, this approach will ensure sanity while trading the markets, a commodity that undeniably can not be compromised.

Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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Joel Kruger publishes 6 daily pieces:

“Tech Talk” – A Daily Video Highlighting Technical Developments in the Overnight Session of Trade.
Monday-Friday (between 5:30am-6:30am EST)

“Morning Slices” – Morning Overview using Fundamental, Technical, Flow, and Quantitative Analysis (Includes “Trade of the Day”).
Monday-Friday (between 6:30am-7:30am EST)

“Indicator of the Day”A Feature Report that Highlights our Most Significant Technical Indicator of the Day.
Monday-Friday (between 8:00am-9:00am EST)

“Midday Snapshot” – A Midday Fundamental Update, along with Technical Analysis of Selected Rates.
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“Scandi Daily” A Specialized Daily Fundamental and Technical Overview of the Nordic Currencies. (This report is only distributed through email. Please contact [email protected] if you would like to be added to distribution.)
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“Daily Classical” – A Daily Technical Overview of the Major Currencies.
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