Yeah, GBP/JPY and GBP/CHF have a correlation of +94, that means they go the same way most of the time. So if you take a long-side trade on one pair and a short-side trade on the other, you will very likely lose on one of them, and vice versa.
GBP/AUD, GBP/CAD, GBP/CHF and GBP/NZD thread 119 replies
GBP/CHF and USD/CHF 951 replies
EUR/CHF, USD/CHF turning up? 1 reply
DislikedYeah, GBP/JPY and GBP/CHF have a correlation of +94, that means they go the same way most of the time. So if you take a long-side trade on one pair and a short-side trade on the other, you will very likely lose on one of them, and vice versa.Ignored
DislikedGBP/CHF looks like a very interesting setup this week. Bullish and bearish trendlines are converging and one will be broken probably on monday. I have an upside projection of 98 pips and a downside projection of 493 pips so I'd favour a long if anything. This backs up the long signals for GU and GY late last friday and would suggest the pound will take back some losses on Monday.
DislikedMy analysis shows a short signal, along with fibonacci trading, but my discretion does not fully support this trade, so I think I will rather avoid this one.Ignored
DislikedBut you didn't see the previous short that is still waiting to be stopped out!Ignored
Dislikedthe main mistake i found in mouteki trading section is drawing a 10 degree trend line and just calling it a demand / supply line !!!
a correct demand / supply line which is less than a 30 degrees slope is not valid in any way , u will get stopped out several times before u use the command ( trend line by angle ) and not just ( trend line ) in ur charting software.
DislikedIf Mouteki said a horizontal line is fine, surely 10 degrees is ok too?Ignored
DislikedHmmm, maybe he was talking about 10 degrees away from a vertical line, that would make it an 80 degrees line ... now that sounds more like what Mouteki said: don't use a too steep trend line, it could be just a retracement ...Ignored
DislikedI think he feels that 10 deg is suggestive of whipsaws... can't answer for him.Ignored
i'll call trend lines : dem-sup lines , which stand for demand/supply.
from my point of view , the perfect dem-sup line have a 45 degree inclination , any slope less than 45 degree can still make profit in forex , but , on the long run , only correct things last longer !
if u review any book about technical analysis of stocks , forex , etc..
u'll get that point clear .
the idea is , the dem-sup line shouldn't cover a large span (a large period of time i mean ) , yet it should have a slope between ( 20 - 60 ) degree , which i insist on being so important and keeps out any false signals ..
i'm here to learn coz i'm a newbie
finally , wish u best of luckIgnored