Disliked{quote} So you say there is a SINGLE ALGO running the Forex Market ? Or are you missing the point being made here deliberately ? Is there a language problem here or am I not clear ? No argument there are Algos in the Market just not a SINGLE ONEIgnored
Shabs,
Do you agree that if you take any three pairs ( say - eurusd/eurjpy/usdjpy) , that at any point in time within 2 ticks, the three pairs will always equate to each other in a manner that
EU = EJ/UJ
UJ= EJ/EU
EJ = UJ*EU
If you agree with this - there must be an algo attempting to keep everything in sync, else arbitrage situations can and will occur.
If this is possible - does it not make sense that when you see price rise change in two of the three, that there would be a need to revert back to a mean OR, that price would need to change on the third pair to compensate?
A single algo exists - there are only two questions in my mind about this.......can the next target be figured out, and if yes, can it be traded?