Forex strategy for the retail trader

Daily time series for the Euro and United States Dollar (EURUSD) currency pair were examined for the presence of higher than average occurrences of continuation moves after excessive price volatility. The goal was to assess the presence of high probability for extracting consistent positive returns from the spot foreign exchange market, Forex. Short assessments of the market players, analytical approaches, and trading strategies were conducted from the viewpoint of a small independent Forex speculator. Both, upward and downward momentum bias and positive returns were found for some of the discretionary time periods. Differences between upward and downward momentum bias and returns were observed. Without considering risk and trade management, the results represent first step in designing a comprehensive trading routine.