Overview
The target forecasting service is best used as a guide to trading. The forecasted high and low predictions should not be used as absolute figures that will be met precisely. In low to moderate volatility, however, the forecasted magnitude and trend direction have proven to be very usefull indeed. In high volatility the predicted high/low magnitude will prove to be less reliable, however, the trend direction indicator remains dependable.
Day Trading
Daily High and Low forecasts can be used for day trading by selling near the indicated high or buying at the indicated low. The probability can be enhanced when buying/selling when the daily predictions are near the weekly predictions. Example, if the weekly high and daily high are in "sync", then it would be advantageous to be a seller at that point.
Position Trading
Weekly forecasts can serve position traders best especially when using the daily time frame as an entry/exit point. If the daily low and weekly low are in close proximity, then entering a position at that point helps to identify a high probability trade with the most potential. In addition, if you have your own trade system, it would be advantageous to use the forecasts to improve your system. Use the weeklies to determine the potential profit, and the dailies to "finesse" the entry or exit.
Money Management
The predictions can also be used as a dynamic money management overlay. Daily high/low predictions can be used as stop losses, and trailing stop losses, while Weekly high/low predictions can be used to set profit targets for position traders.
Option Trading
Long Option and Short Option traders will find the high/low forecasts usefull also. Given the nature of option trading, absolute price targets are less important than it is when trading in the underlying instrument. Therefore, choosing a long option with a reasonable forecast can be advantageous while short option traders can set profit targets and action a risk management strategy based on the forecasts.
Conclusion
Before digital media came along, the newspaper was the main form of communication for the financial markets. The adage of "having tommorrows' newspaper today" applies to the predictions indicated here. If you can know within a reasonable margin of error the price action of tommorrow, then it simply becomes a matter of executing an appropriate action.
PREDICTIONS ARE FORMULATED IN PART WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY TRADE OR FORECAST WILL OR IS LIKELY TO ACHIEVE PROFITS. THE CLIENT UNDERSTANDS THAT TRADING IN THE FOREIGN EXCHANGE SPOT MARKET INVOLVES SUBSTANTIAL RISK AND THAT YOU MAY LOSE YOUR ENTIRE CAPITAL. YOU SHOULD ONLY TRADE WITH FUNDS THAT YOU CAN AFFORD TO LOSE.
