Price behavior in the Euro

Posted by Scriptaty | 9:29 PM

The Euro/U.S. dollar pair (EUR/USD) started a bull market in October 2000 that, as of now, seems to have peaked in December 2004. That overall uptrend contained the normal range of market behavior — trading ranges, upside breakouts that led to sustained rallies, and corrections.

Analyzing a simple trading approach from January 2000 to September 2005 sheds light on the typical market behavior during this period and offers clues about how to take advantage of certain kinds of price action. The breakout strategy in question was not intended to be a viable tradable approach in and of itself, but rather to provide research that could be the basis for building or enhancing a trading strategy.

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