Yesterday (Friday 31st Aug.2007) at about 8.00 am (EST) I went long on GBP/USD and was rewarded to a near 80 pip gain, shortly after I went short on the same pair and was again rewarded with a 80 pip short gain. All this in a span of about two hours. Now the interesting thing is that as I was monitoring the trades I happend to glance the Eur/USD - both 5min charts, and I noticed a very close pattern, the only difference being that the Eur/USD was delayed by a short time, so noticing the similarity I went short at the appropriate time on Eur/USD and sure enough was again rewarded the same way, and about the same PIPs. So close to a 400 pip profit in two hours. As I had discovered this purely accidently, I decided to investigate this. I found that that there is a very close correlation between the two currency pairs, often as high as 94 percent. For all that are interested here is a web site that can explain the whole process
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I hope some of you find the information useful. Any further thoughts would be appreciated
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I hope some of you find the information useful. Any further thoughts would be appreciated