I realised I thoughtlessly hogged canados' thread (discussing spread trading) with me being interested in the triangle relationship between currencies. I'm afraid I can't assist with his concern, but I owe him additionally for raising my interest in this triangle.
This thread starts off with my posting of the updated Via indicator, which presents the "via price" of a symbol, i.e., the price xxxyyy should have by (instead) considering it via currency zzz, plus blue and red arrows indicating trade opportunities.
Nominally we know that xxxyyy = xxxzzz * zzzyyy, but when it comes to situated reality, that is not the case. Instead, xxxyyy says one thing, and xxxzzz * zzzyyy says another. And the discrepancy can be 10-20 or more in pips, lasting for an hour or more.
The Via indicator can be used to illustrate this, and it takes it one step further, by translating discrepancy into trade signals of when to buy/sell and then which takeprofit to use. You are on your own with stoploss and volume.
The indicator takes three interactive parameters: the "via currency" as three letter code, an "offset" for removing a bias from the relationship if there is one, and a "profit" number for a least number of profit pips required for a trade suggestion.
Note that the way it's coded, the Via indicator does not wait until history is loaded, and therefore it might not show much the first time it's dropped onto a chart. It will however trigger history loading, so if you edit its parameters or remove and drop again, it will show a bit more.
Last week, GBPUSD via EUR at 1H, presented a fair bit of discrepancy. Though, I would guess it is heavily broker dependent.
Enjoy
This thread starts off with my posting of the updated Via indicator, which presents the "via price" of a symbol, i.e., the price xxxyyy should have by (instead) considering it via currency zzz, plus blue and red arrows indicating trade opportunities.
Nominally we know that xxxyyy = xxxzzz * zzzyyy, but when it comes to situated reality, that is not the case. Instead, xxxyyy says one thing, and xxxzzz * zzzyyy says another. And the discrepancy can be 10-20 or more in pips, lasting for an hour or more.
The Via indicator can be used to illustrate this, and it takes it one step further, by translating discrepancy into trade signals of when to buy/sell and then which takeprofit to use. You are on your own with stoploss and volume.
The indicator takes three interactive parameters: the "via currency" as three letter code, an "offset" for removing a bias from the relationship if there is one, and a "profit" number for a least number of profit pips required for a trade suggestion.
Note that the way it's coded, the Via indicator does not wait until history is loaded, and therefore it might not show much the first time it's dropped onto a chart. It will however trigger history loading, so if you edit its parameters or remove and drop again, it will show a bit more.
Last week, GBPUSD via EUR at 1H, presented a fair bit of discrepancy. Though, I would guess it is heavily broker dependent.
Enjoy
Attached File(s)
