Typically, the trader looks at a certain currency pair and starts applying various technical analysis, using it to "calculate" the reversal points.
But it is useless labor. All discrepancies will show itself with a probability of 50/50, leading eventually to the loss of deposit. And the fact is that the trader does not see the trees for the forest. And the properties of the forest is not like the properties of wood.
If the currency pair EUR/USD is growing, it can not be seen looking only at one price chart with a certain accuracy to say, a dollar cheaper or more expensive euro. Can this be determined? Yes, looking at other charts containing the same currency!
Pair is not alone in the market and sets defines the property of it. This property - interdependence. Currency can not go all against all! "This is the" Achilles heel "of Forex and its fundamental difference from the other markets.
Any imbalance in market prices of currencies, ultimately is eliminated, to trade imbalances - that's the whole strategy of the game on the market.
Regards
But it is useless labor. All discrepancies will show itself with a probability of 50/50, leading eventually to the loss of deposit. And the fact is that the trader does not see the trees for the forest. And the properties of the forest is not like the properties of wood.
If the currency pair EUR/USD is growing, it can not be seen looking only at one price chart with a certain accuracy to say, a dollar cheaper or more expensive euro. Can this be determined? Yes, looking at other charts containing the same currency!
Pair is not alone in the market and sets defines the property of it. This property - interdependence. Currency can not go all against all! "This is the" Achilles heel "of Forex and its fundamental difference from the other markets.
Any imbalance in market prices of currencies, ultimately is eliminated, to trade imbalances - that's the whole strategy of the game on the market.
Regards