I want to work on trading currencies based on an individual currency's direction, so to speak.
So, lets take EURUSD for example. We all know that EUR in this case is the 'base' currency and USD is the 'counter' currency.
So, could we not say for just this pair alone that when this pair is:
Long: USD is rising and EUR is falling
Short: EUR us rising and USD is falling
FOR THIS PAIR ONLY.
W/ that in mind, we could, in theory, figure out what the other currency pairs are doing, in the term of points, and figure out an 'overall' of whether the individual currency is long/short.
What prompted this was this article: http://articles.mql4.com/422
But when I look at the code, I see he/she is using Moving Averages to figure individual currencies. That doesn't sound right to me if you're trying to figure out what each individual currency is doing.
Thoughts?
UPDATE (2/1/2011):
I've attached the indicator of what I was trying to do. I'm using it in trade decisions.
It's based on raw price.
So, lets take EURUSD for example. We all know that EUR in this case is the 'base' currency and USD is the 'counter' currency.
So, could we not say for just this pair alone that when this pair is:
Long: USD is rising and EUR is falling
Short: EUR us rising and USD is falling
FOR THIS PAIR ONLY.
W/ that in mind, we could, in theory, figure out what the other currency pairs are doing, in the term of points, and figure out an 'overall' of whether the individual currency is long/short.
What prompted this was this article: http://articles.mql4.com/422
But when I look at the code, I see he/she is using Moving Averages to figure individual currencies. That doesn't sound right to me if you're trying to figure out what each individual currency is doing.
Thoughts?
UPDATE (2/1/2011):
I've attached the indicator of what I was trying to do. I'm using it in trade decisions.
It's based on raw price.
Attached File(s)
Currency Direction.mq4
6 KB
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267 downloads
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Uploaded Feb 1, 2011 5:23pm