Good analysis kills a good entry system

If you had a chance to decide to get either: the best analysis or the best entry system, what would you get?

Here is my take…

I’d go for the best analysis. Because even with the best entry system, if you choose the wrong currency pair to trade, or you go short when the market is likely to continue up, the best entry system won’t do any good.

What do you think?

And that’s what I try to do every morning: do my analysis and come up with a trading plan for each one of the currency pairs that I’ll be trading.

For instance, take a look at the AUDJPY:

AUDJPY

My thinking process would be:

Ok, every time the market gets near the support level it gets rejected, so right know it is likely to get rejected again, I’m going to try to find an entry to go long in the AUDJPY.

That’s it. That’s my plan for the AUDJPY.

What do you think?

Cheers,

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Raul Lopez

I've been trading the markets for more than 15 years. I believe the best way to trade is by adapting to the market conditions. You can learn it too, join our community .

  • Well, yes – analysis is very important! With a good analysis you could decide which one strategy you should apply to current market conditions.

    thank you!

    • Raul Lopez

      I perfectly agree with you. Cheers and thx for your comment!

  • Jim S

    The supporting zone on AUDJPY 4H chart is about 50-60 pips, it is difficult to define the entry and the trend is strong downtrend. Better wait for confirmation to go long ?

    • Raul Lopez

      Hey Jim, an strategy would be: wait for the break out of the short term resistance level (around 80.28), then go long. What do you think?