Could a case be made that technical analysis on minor pairs is useless?
Consider this... I trade on daily charts using only bounces from support and resistance drawn on the weekly chart. (let's not get bogged down with the system, I just want to concentrate on my main point).
I have noticed that my trades on the major pairs (or anything against the USD) are always much more reliable trades. I can get a strike rate of comfortably over 50% with a 2:1 r/r.
When I trade major crosses or exotics I have less success.
Now, the way I look at it eurgbp is directly calculated from gbpusd and eurusd so eurgbp is directly affected by support and resistance (or any other technical analysis method you care to mention) on the major pairs involved in its calculation. If you get a signal from eurgbp it is at the mercy of the technical analysis of the major pairs used in its calculation.
Obviously the major pairs are the most liquid and so the TA on those charts would hold more weight.
Would a support level on eurgbp attract sufficient buy orders to affect gbpusd and eurusd? I don't know. Probably more than audjpy anyway.
Anybody got any thoughts on this?
Consider this... I trade on daily charts using only bounces from support and resistance drawn on the weekly chart. (let's not get bogged down with the system, I just want to concentrate on my main point).
I have noticed that my trades on the major pairs (or anything against the USD) are always much more reliable trades. I can get a strike rate of comfortably over 50% with a 2:1 r/r.
When I trade major crosses or exotics I have less success.
Now, the way I look at it eurgbp is directly calculated from gbpusd and eurusd so eurgbp is directly affected by support and resistance (or any other technical analysis method you care to mention) on the major pairs involved in its calculation. If you get a signal from eurgbp it is at the mercy of the technical analysis of the major pairs used in its calculation.
Obviously the major pairs are the most liquid and so the TA on those charts would hold more weight.
Would a support level on eurgbp attract sufficient buy orders to affect gbpusd and eurusd? I don't know. Probably more than audjpy anyway.
Anybody got any thoughts on this?