Hey guys,
This is my first post in a long time so please bear with me. We all like winning trades no doubt, and we spend most of our time looking for an 'edge' that would tilt the scales in our favor.
When we trade currencies pairs we buy one and sell the other, we trade because we see something in our charts or because of a piece of news etc etc...something that could help give us a higher chance of winning is if we pit a strong currency together with a weak currency and buy the strong currency while selling the weaker currency. I felt this would be a good way to tip the scales in my favor, I found a number of indicators that attempted to show strength and weakness, and met a couple of people online who tried to gauge a currency's strength relative to its performance with a single currency, for example if we wanted to test the strength of the CHF as compared to the GBP we would look at its performance relative to the USD. This is useful to some extent but is time consuming and sometimes misleading, for obvious reasons.
I came across an article by Mr Richard Krivo and he uses a simplistic albeit unique style to look for strength and weakness in currencies. the link is as follows:
http://www.dailyfx.com/forex/educati...urrencies.html
I have slightly modified the method and find that it is extremely useful in helping me pick which currency pairs to trade. I would love to hear your thoughts on this,
Cheers
Abi
This is my first post in a long time so please bear with me. We all like winning trades no doubt, and we spend most of our time looking for an 'edge' that would tilt the scales in our favor.
When we trade currencies pairs we buy one and sell the other, we trade because we see something in our charts or because of a piece of news etc etc...something that could help give us a higher chance of winning is if we pit a strong currency together with a weak currency and buy the strong currency while selling the weaker currency. I felt this would be a good way to tip the scales in my favor, I found a number of indicators that attempted to show strength and weakness, and met a couple of people online who tried to gauge a currency's strength relative to its performance with a single currency, for example if we wanted to test the strength of the CHF as compared to the GBP we would look at its performance relative to the USD. This is useful to some extent but is time consuming and sometimes misleading, for obvious reasons.
I came across an article by Mr Richard Krivo and he uses a simplistic albeit unique style to look for strength and weakness in currencies. the link is as follows:
http://www.dailyfx.com/forex/educati...urrencies.html
I have slightly modified the method and find that it is extremely useful in helping me pick which currency pairs to trade. I would love to hear your thoughts on this,
Cheers
Abi
An investment in knowledge pays the best interest - Ben Franklin