What is the Weekly Forex Outlook and Review?

It is a regular video review at Forex Reviews where I analyse and highlight multiple high probability trading areas, management point areas and  target areas on multiple markets. To check out the latest video review visit here.

forex outlook and review

What is an Opportunity Area, Management Point Area and Long Term Target Area?

A opportunity area is where a trader can look for aligning evidence ( more about evidence below ) and a potential opportunity on a market. Another name for it is a trading area in the market.

A management point area is where a trader optionally can close a partial profit on a position, in some cases there will be no management point areas before the long term target with a trade setup, some 1, some 2 and some even more.

It depends on setup and how many opposing zones ( opposing structure point ) there area from entry. A management point is also an area where a trader can optionally pull stop loss to breakeven on a trade position.

..In a way, you could see a managment point area as a resting area, area to remove risk from a position on a market on the way to the long term target ( trade journey ).

A long term target area is a suggested area on a market to close the full trade. It is often an opposing major daily zone area from entry.

What is Evidence?

the engulfing trader

Evidence such as what I refer to in the weekly reviews as Bullish evidence or Bearish evidence is an aspect I go over in detail in the Forex Training at the website such as in The Engulfing Trader, The 5 Day Trend Training Series and The Candlestick Training Series. It includes aspects such as aligning candlesticks ( engulfing, pin bars, railroads, etc ), structure retests, trend evidence and retracement confluences at an important area in the market.

Evaluating both Evidence and Risk to Reward when a market tests a trading zone helps a trader decide whether to consider a potential opportunity in the market or not.

Understanding the If, Then Process..

The if then process is a sequence where a trader waits for the market to perform a certain process before considering a opportunity. If the market does this and if the market does that and so on before considering a potential trade.

So when I say in the review ‘that if the market tests this zone this week this is an area where I am interested in bullish evidence’ this week I am referring to if price moves into the specified support area and the right sort of bullish evidence forms in that area to indicate a potential opportunity on that market.

Breakdown:

  1. If price tests a important zone
  2. If the right sort of aligning evidence forms in that area
  3. If risk is much less than potential reward
  4. If other confluences align such as trend evidence or fibonacci retracement tool

If all answers above are yes, if they exist, then a trader can consider position on that market. If not, then avoid.

The if then process also relates to how to manage a position after entry:

  1. If price tests a management point set on trade, close a partial profit ( close part of trade )
  2. If it hits the long term target price, close full position ( take profit )
  3. If trade price moves to here, close position for a small loss ( stop loss ).

Risk and Exposure

I suggest traders keep risk low, under 2% of account size when following any form of trading method.

To find out more on this topic visit here.

I suggest also that traders control exposure and limit this aspect, I suggest limiting exposure to 4% before management phase. This ensures also that account drawdown is below 4%.

For more on this topic visit here.