The Price Action Trader

USDJPY Analysis - End of the Negative Interest Rate Policy?                                                   Kazo Ueda, Governor Bank of Japan                                                                USDJPY Daily Chart A glance at the daily chart shows the order flow has turned bearish. Driving this rally are the recent hawkish statements by the Bank of Japan members. Traders are interpreting this as a sign that the BOJ plans to exit the negative interest rate policy. The governor's comments on inflation were more positive than in previous meetings, signalling a path to policy normalisation. The central bank is consideri...

Six Elements to Trading Success When it comes to trading, other than a trader's internal makeup, there are 6 key quantitative factors you should be analyzing and closely tracking when determining the viability of a system. These metrics act as a barometer of whether you are succeeding or not.  The six elements I learnt after reading the book, Trade Your Way to Financial Freedom taught by the late Dr. Van Tharp in his book Trade your way to financial freedom are outlined as follows: Reliability - What percentage of time do you make money? A fact about trading is that you can have a win rate of 40% and still make money in the long run. The viability of a method is a combination of payoff and probability, of course, also considering how often you trade. A higher winning rate will sustainably boost your profits but this must be supported by a higher R per winning trade. The relative size of profits compared to losses when traded at the smallest possible level. You want your losses to...