In this scenario, it is clear that a correction in the market is impending.

This trade came off with profits, but this still does not mean that this same stance can yield the same results every time. The only thing left to do is to time the market properly. The CFTC Net Traders Positions show that speculators are trading at record longs with an 80% bullish indicator. In the forex trading market, timing is everything. The charts sho the British Pound to have extremely bullish forecasts at that time with speculators piling into it with greed for profits. Successful strategies simply trade the odds and try to be right more times than being wrong.

With a good free chart service such as those provided in ,. There is no way to predict the exact time when a currency is going to move a certain way.

This is where momentum indicators come in.

A Forex Trading Strategy at Work Using the British Pound's July 24th chart taken at 9:30pm CET, the forex trading strategy taken from its short side is illustrated in a step-by-step manner showing exactly how the trade was executed using signals from the forex market as well as a number of indicators in trade that is focused on the bearish side despite overly bullish market sentiments.