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The FX Bootcamp Guide to Strategic and Tactical Forex Trading by Wayne McDonell

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SPY PLANE VIEW

Strategy is not employed in the trenches. It is not hand-to-hand combat. It is not the foot soldier peering through his sight. It is not the field officer scanning the terrain with his binoculars. It is the four star general reviewing images from the U2 reconnaissance planes and spy satellites ... away from the battlefield.
In forex, strategy does not put you into a trade. However, it is your general bias for a currency or currency pair. It helps you pick direction for the market. Strategy can last a very long time: many months and often even years. Like a battle commander who uses information to coordinate a cohesive strategy for his troops, a forex trader must use information to formulate a strategy for making trades.
To formulate a strategy in war, analysis of the enemy’s strengths and weaknesses—such as its ability to resupply its forces and defend its fortifications—is necessary. The best way to do this is to get constant data from the field. Snapshots from high altitude give telling signs, but they are only clues.
You may see, for example, a convoy of trucks, but you will not know what they are carrying inside them. Is it weapons of mass destruction, troop reinforcements, medical supplies, or civilian refugees?
As a forex trader, you can review all known information to formulate a strategy. You can also get snapshots from a distance in the form of economic data released on an ongoing basis from all the major economies around the world. These data reports ...

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