Long-Term Set-Up in EURGBP

There is very definitely a difference between trading and forecasting.  Trading for most technicians is an activity that is dictated by what the market tells us to do. Forecasting is something entirely different.  A forecast to me is taking what the market is telling me now, namely its current path of least resistance, and projecting that forward on the assumption that the underlying structure of the market place which established that direction does not change — This with the back drop of a global market place that is constantly changing.

Most traders I know don’t like to forecast because they know that their job, by definition, entails trusting their methods more than their opinion. They also know the value of not thinking at all, and just gong w/ the flow which and whenever it turns.

The public though likes when someone in our profession makes a forecast. And if we’re going to put ourselves out there, particularly as educators, I think we at least have to point out as best we can what’s happening direction wise, and even why we are seeing that.

That said, here’s a clip from a show I was on today, where I was asked to forecast:

DISCLAIMER: Futures, options and Forex (off-exchange foreign currency futures and options, or “FX”) trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, options and Forex may fluctuate, and, as a result, clients may lose more than their original investment.


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About Jay Norris

Jay Norris is Director of Education at Trading University, has over 30 years of trading experience, and is the best selling author of "Mastering The Currency Market", McGraw-Hill, 2009, and "Mastering Trade Selection and Management", McGraw-Hill, 2011. He has also been published multiple times in Technical Analysis of Stocks & Commodities magazine.

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