Understanding Drawdown/Market Drops Part I
By FX Insights
Understanding Drawdown/Market Drops Part I
With the EUR/USD making anywhere from 300 to 600 pip swings the past few weeks, this has certainly caused a lot of confusion for newer FX traders, tech traders, and really just about any other trader that doesn’t quite understand the main factors that cause bigger market moves/drawdown/market drops/market corrections.
For me it’s usually easy to identify why the market did what it did on a daily basis, because we can watch the correlated variables and we can watch price action to get the answers and piece the clues together… but every so often, like we saw last week, the market will make a 300 pip correction, which leaves many traders scratching their heads…
The other confusing thing to traders is something like we saw last August – it was mid August when all the subprime and credit crunch stuff really hit the fan. Logic would […]
Original post by adriaani001