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  • #6,621
  • Oct 24, 2008 7:08am Oct 24, 2008 7:08am
Quoting FxChi
Islander - RSI showing a squeeze condition leading to a breakdown soon and 34 EMA is holding PA right now. I entered a small position with a tight stop to see if it plays out. If price closes beyond 34 I'm out.

The pull back was to the 61.8% level - actually close to the 5400 level, so 200 pips and now its rallying above the 34 ema which has turned up, so I guess that its time to pull some wider ranged fibs to look for some more levels....
Trading Levels with WRBs
  • #6,622
  • Oct 24, 2008 7:16am Oct 24, 2008 7:16am
The range is so large that I've pull 2 fibs - the gold has a 1070 pip range and the yellow an 820 range.

As I'm long, I hope the gold one will come into play!
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Click to Enlarge Name: oct 24 cable 15m 1200.gif Size: 9 KB
Trading Levels with WRBs
  • #6,623
  • Oct 24, 2008 7:46am Oct 24, 2008 7:46am
Quoting Islander
Cable has fallen so far that its difficult to find any fibs to use, so I monitor the action via the 34 EMA on the 5 min chart as price continually moves around this MA.

Normally, the furtherst that price will move from the 34 before having a retrace is 200 pips - the inner dashed line.

This morning the humungous red blow off candle of 185 pips went 400 pips - the lower dashed line - under the 34 ema before the retrace began. I have never seen such an extreme oversold condition in cable.

Now perhaps this retrace will give some levels off which we can draw fibs......

PS Apologies for a non fib post, but I thought it might be of some interest....

LOL. Its no problem, technicals have been thown out the window at this point, its all price action right now.
  • #6,624
  • Oct 24, 2008 12:44pm Oct 24, 2008 12:44pm
BoBokus, thanks so much. I've never really understood how to use fibonacci retracements previously. Watching and rewatching and rewatching your videos has helped the "lightbulb" turn on. These last several weeks have been more consistent.
  • #6,625
  • Oct 24, 2008 2:48pm Oct 24, 2008 2:48pm
Quoting lmturek11
BoBokus, thanks so much. I've never really understood how to use fibonacci retracements previously. Watching and rewatching and rewatching your videos has helped the \"lightbulb\" turn on. These last several weeks have been more consistent.
Your welcome, its good that its starts to make sense to you, it gets easier the more time you spend trading with them.
  • #6,626
  • Edited 7:41pm Oct 24, 2008 6:09pm | Edited 7:41pm
Bo, shame to tell you that my 40% account has been blowed out while all the traders made pips.
After full time job, back home 11:00 pm EST. I try to stay in front of computer and watch the trade to develop, but long hours watching made me feel sleeping. I have no confidence to place stop order before go to bed. After short sleep, my god! I miss the first candle that broken the low of previous candle. Then I scared to jump in as we didn't know how far the trade can go. By same situation, I miss so many good trades, but entered the trade that didn't go too far and reversed. As I didn't placed stop loss, I was bured.

Bo, can you give me some practical advices when we miss the first entry opportunity.

1) First, should I look for entry by break of current candle if there is space to intraday low?

2) Then if no space to intraday low,should I looking the entry at break of intraday low? but I afraid that price break intraday low and reverse. Do you think it is good to enter by break low of candle which broken the intraday low.

3) If price broken intraday low already, can I try to grap some pips by break of current candle low.

From now, I start to put hard stop loss at 8 pips above the previous candle high or 6 pips below the previous candle low for EURUSD and GBPUSD.

I wish you give me the confidence back to deal above sistuations.
  • #6,627
  • Oct 24, 2008 9:51pm Oct 24, 2008 9:51pm
Quoting jren07
Bo, shame to tell you that my 40% account has been blowed out while all the traders made pips.
After full time job, back home 11:00 pm EST. I try to stay in front of computer and watch the trade to develop, but long hours watching made me feel sleeping. I have no confidence to place stop order before go to bed. After short sleep, my god! I miss the first candle that broken the low of previous candle. Then I scared to jump in as we didn't know how far the trade can go. By same situation, I miss so many good trades, but entered the trade that didn't go too far and reversed. As I didn't placed stop loss, I was bured.

Bo, can you give me some practical advices when we miss the first entry opportunity.

1) First, should I look for entry by break of current candle if there is space to intraday low?

2) Then if no space to intraday low,should I looking the entry at break of intraday low? but I afraid that price break intraday low and reverse. Do you think it is good to enter by break low of candle which broken the intraday low.

3) If price broken intraday low already, can I try to grap some pips by break of current candle low.

From now, I start to put hard stop loss at 8 pips above the previous candle high or 6 pips below the previous candle low for EURUSD and GBPUSD.

I wish you give me the confidence back to deal above sistuations.
The first thing I would tell you is if your trading real money for now stop. If it is real money your trading with you dont want to learn trading with real money.
I feel for ya working full time and then trying to trade Intraday, Ive been there myself, but to trade Intraday you need to be there in front of it so not setting stop orders is a smart move since the market can change so quickly you have to adapt almost every singe day to whats happening in the markets.
You may want to consider trading from the larger timeframes like the Daily since it doesnt require so much screen time.

When you run into those instances that you miss your entry dont chase it, thats just going to make things worse, Its making an impulsive trade to try and be in the market, most new traders will enter anyway knowing its not the right move and hope that it works out then as soon as they do the fear and panic will set in taking all rationalism out of the thinking process any and all trading plans are abandoned at that point and most will close their trades manually for a loss or try and buy or sell their way back to the original position which is another mistake and just compounds the problem.I can go on and on but I think the biggest thing Im trying to point out is about trading habits and the position your in isnt allowing you to use the right habits you have to have to trade and be successful, in your position your almost always end up chasing the market and youve gotten into this being a habit believe it or not and its become your normal day to day trading habits. Youll have to change this first and the answer to that is your part, youre going to have to find a schedule that will work for you and still be able to function at your normal job and if it means learning to trade from the higher timeframes thats what I would do. Change your habits first and trade from a plan, if you dont get the setups your looking for dont trade.

1) When your looking for entry's your watching the current candle to see if its trading higher or lower than the previous candle or periods. The thing about there being space to the low from your entry point, it depends alot on what is going on with the pair your trading. There is no absolute correct entry since there are many variables because the market isnt a mechanical thing, is the break going with the current trending, is the market ranging and it might not break the low or if it does and your in a ranging market it may retrace, is it breaking the low without retracing. Many things have to be considered because each time is a little different.

2) If you enter on the break of the low when its already moving down its a late entry if its a rejection from the Intraday levels. Many times when there isnt a retracement but a consolidation period before it breaks the low its usually trending or just continuation from the previous day and I use a sell stop a few pips below the low as an entry, I rarely ever enter a trade manually since I want the market to pass a certain point to kinda prove to me that its moving in that direction.

3) My advise for that is no dont try and grab a few pips, especially if the pair has been moving down for several hours, scalping entry's come from the same place you make Intraday trades from if not youll end up selling at the bottom of a waveform and your chasing it trying to be in a trade. Before you even trade, start making a trading plan based off the analysis you make on the pair if it doesnt develope then dont trade it, keep doing this because they will develope and those are the ones you take. Patience will pay dividends. Its like the hunting analagy I gave before, you dont want to trade with a shotgun blasting away thinking one will eventually hit, you want to trade more like a sniper with a rifle...if the shot aint there dont take it.

Confidence can only come from experience, no method, strategy or mentor can give you confidence in what your doing, thats something that developes over time. Trade small at first..pennies make nickels, nickles make dimes, dimes make quarters....your confidence will come from trading with patience and sticking with something because as you go youll see that you can develope your own little tweaks to it that make you successful with it.
  • #6,628
  • Oct 24, 2008 11:39pm Oct 24, 2008 11:39pm
Quoting jren07
Bo, shame to tell you that my 40% account has been blowed out while all the traders made pips.
After full time job, back home 11:00 pm EST. I try to stay in front of computer and watch the trade to develop, but long hours watching made me feel sleeping. I have no confidence to place stop order before go to bed. After short sleep, my god! I miss the first candle that broken the low of previous candle. Then I scared to jump in as we didn't know how far the trade can go. By same situation, I miss so many good trades, but entered the trade that didn't go too far and reversed. As I didn't placed stop loss, I was bured.

Bo, can you give me some practical advices when we miss the first entry opportunity.

1) First, should I look for entry by break of current candle if there is space to intraday low?

2) Then if no space to intraday low,should I looking the entry at break of intraday low? but I afraid that price break intraday low and reverse. Do you think it is good to enter by break low of candle which broken the intraday low.

3) If price broken intraday low already, can I try to grap some pips by break of current candle low.

From now, I start to put hard stop loss at 8 pips above the previous candle high or 6 pips below the previous candle low for EURUSD and GBPUSD.

I wish you give me the confidence back to deal above sistuations.
If you lost 40% of your account in one day then you need to go through money management skills. Never risk more than 3-4% account, and if your just starting out always start at lowest possible lot and work your way up, thats what I am doing and it's working out really well. Sure I can't afford the car I have been dreaming about for 2 years now, but who knows that might come eventually. I already lost an account because of greed and I am not making that mistake again. I personally feel everyone should trade pennies, thats where I am, I was able to catch 265 pips today, but I still will trade pennies, I may change to 2 pennies starting monday a pip.
I have $250 in my account(I am poor), if I loose 100 pips every single day my account will last for 250 trading days, right now I am just risking .004%, but my max would reach .1 mini lots with $250, but by the time I come close to that my account has already increased, and will continually grow, let things grow slowly and try not to loose anymore.

When I lost that 300 pips in a couple days, I just stepped back from forex, went back to demo and traded until things went well, when I went back to demo I had already gained 350 pips(blame on volatility). Now is a somewhat bad time for inexperienced traders because losses can be massive, never make mistakes that Bo said about entering and risking trades, never.

You can't rush how much money you make, you can't plan how much money you make either, no forex system is like that. I didn't expect to make 265 pips today, but I didn't expect to make absolutely nothing yesterday. Don't let greed and an empty hand destroy your account, because at the end of the day keeping your hand is better than loosing it, and in forex that should be your perspective. I personally beleive forex is very hard to trade, I have been watching it non-stop for 14 months and until now nothing has come from it. Look at the all the people who have lost all their money in Stocks, and other securities why?

Their greedy and their lazy, they think money will just come for free if they keep throwing it at something, thats not the way the world works and there are consequences for it. You have a be smart, you need to agile like a sniper as Bo put it. Don't take it too hard, if this is your first time loosing your account we've all been there, it feels absolutely horrible, but you move on and learn. I had lost about 300 pips last week, but I got it all back this week. I also made a mistake when I entered a trade that was 100 times bigger than it should have been(swtiching demo and live a pain). I almost lost 20% of my account, but I was able to save it as price moved back down, you just need experience and you need practise.

Days like the ones we have had, do not get use to them, because they are very rare. There is just to much volatility in the markets, its not going to last forever, and if you keep working at it your losses won't last forever either. The hardest thing about this system is patience, not just in learning but in making the trades themselves, it takes a lot of discipline, and you will learn that when you loose. Just don't let it happen again and bring your own confidence back. I will admit that I have barely read anything previous on this thread, this thread is quite long and I really don't have the patience to read it, I just found old PDFs Bo made, and watched Sherm and Bo post their trades and just setup everything based on that and I eventually figured it out in my own way. Although still learning, I am glad Bo outlined good entry positions, because I haven't been making best entries, just something I need to work on.

As for working full time. I am an engineer student at university, trading market isn't easy for me when you have to spend atleast 1 hour on the bus during market open. I personally just wake up at 4:00AM trade 1h after london open, and then work with my phone. You should get a windows mobile phone if your really serious about practising, I will owe my trades to the phone.

Anyway I don't mean to make my post to long, but I have lot of experiences too, just thought I would share them. I wish you good luck, and hope everything works out.
"If voting changed anything, they'd make it illegal" - Emma Goldman
  • #6,629
  • Oct 25, 2008 5:30am Oct 25, 2008 5:30am
Bo, When we buy the dips or sell the rallys as the price tests previous pa of a consolidation or ranging levels should I look at breaking support that is now resistance or resistance above support that is tested? Or is the later only sigificant? I notice it tests previous support as resistance sometimes and is rejected.
Attached Image (click to enlarge)
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  • #6,630
  • Oct 25, 2008 7:25am Oct 25, 2008 7:25am
Quoting TheLegace
If you lost 40% of your account in one day then you need to go through money management skills. Never risk more than 3-4% account, and if your just starting out always start at lowest possible lot and work your way up, thats what I am doing and it's working out really well. Sure I can't afford the car I have been dreaming about for 2 years now, but who knows that might come eventually. I already lost an account because of greed and I am not making that mistake again. I personally feel everyone should trade pennies, thats where I am, I was able to catch 265 pips today, but I still will trade pennies, I may change to 2 pennies starting monday a pip.
I have $250 in my account(I am poor), if I loose 100 pips every single day my account will last for 250 trading days, right now I am just risking .004%, but my max would reach .1 mini lots with $250, but by the time I come close to that my account has already increased, and will continually grow, let things grow slowly and try not to loose anymore.

When I lost that 300 pips in a couple days, I just stepped back from forex, went back to demo and traded until things went well, when I went back to demo I had already gained 350 pips(blame on volatility). Now is a somewhat bad time for inexperienced traders because losses can be massive, never make mistakes that Bo said about entering and risking trades, never.

You can't rush how much money you make, you can't plan how much money you make either, no forex system is like that. I didn't expect to make 265 pips today, but I didn't expect to make absolutely nothing yesterday. Don't let greed and an empty hand destroy your account, because at the end of the day keeping your hand is better than loosing it, and in forex that should be your perspective. I personally beleive forex is very hard to trade, I have been watching it non-stop for 14 months and until now nothing has come from it. Look at the all the people who have lost all their money in Stocks, and other securities why?

Their greedy and their lazy, they think money will just come for free if they keep throwing it at something, thats not the way the world works and there are consequences for it. You have a be smart, you need to agile like a sniper as Bo put it. Don't take it too hard, if this is your first time loosing your account we've all been there, it feels absolutely horrible, but you move on and learn. I had lost about 300 pips last week, but I got it all back this week. I also made a mistake when I entered a trade that was 100 times bigger than it should have been(swtiching demo and live a pain). I almost lost 20% of my account, but I was able to save it as price moved back down, you just need experience and you need practise.

Days like the ones we have had, do not get use to them, because they are very rare. There is just to much volatility in the markets, its not going to last forever, and if you keep working at it your losses won't last forever either. The hardest thing about this system is patience, not just in learning but in making the trades themselves, it takes a lot of discipline, and you will learn that when you loose. Just don't let it happen again and bring your own confidence back. I will admit that I have barely read anything previous on this thread, this thread is quite long and I really don't have the patience to read it, I just found old PDFs Bo made, and watched Sherm and Bo post their trades and just setup everything based on that and I eventually figured it out in my own way. Although still learning, I am glad Bo outlined good entry positions, because I haven't been making best entries, just something I need to work on.

As for working full time. I am an engineer student at university, trading market isn't easy for me when you have to spend atleast 1 hour on the bus during market open. I personally just wake up at 4:00AM trade 1h after london open, and then work with my phone. You should get a windows mobile phone if your really serious about practising, I will owe my trades to the phone.

Anyway I don't mean to make my post to long, but I have lot of experiences too, just thought I would share them. I wish you good luck, and hope everything works out.
Excellent post Legacy, at your age learning this now your going to do fine and be head over heels ahead of the rest of your generation..
  • #6,631
  • Oct 25, 2008 7:31am Oct 25, 2008 7:31am
Quoting kpt1956
Bo, When we buy the dips or sell the rallys as the price tests previous pa of a consolidation or ranging levels should I look at breaking support that is now resistance or resistance above support that is tested? Or is the later only sigificant? I notice it tests previous support as resistance sometimes and is rejected.
Most definately, what your descibing is basic Support and Resistance measures and thats something that should always be part of making your analysis or developing your trading plan. I mark points like these with a horizontal line so I will know when price revisits these points as they might be in the path of your target, you should treat those just like they were a fib level and watch for a change in price action when they are reached.
  • #6,632
  • Oct 25, 2008 7:46am Oct 25, 2008 7:46am
Quoting jren07
Bo, shame to tell you that my 40% account has been blowed out while all the traders made pips.
After full time job, back home 11:00 pm EST. I try to stay in front of computer and watch the trade to develop, but long hours watching made me feel sleeping. I have no confidence to place stop order before go to bed. After short sleep, my god! I miss the first candle that broken the low of previous candle. Then I scared to jump in as we didn't know how far the trade can go. By same situation, I miss so many good trades, but entered the trade that didn't go too far and reversed. As I didn't placed stop loss, I was bured.

Bo, can you give me some practical advices when we miss the first entry opportunity.

1) First, should I look for entry by break of current candle if there is space to intraday low?

2) Then if no space to intraday low,should I looking the entry at break of intraday low? but I afraid that price break intraday low and reverse. Do you think it is good to enter by break low of candle which broken the intraday low.

3) If price broken intraday low already, can I try to grap some pips by break of current candle low.

From now, I start to put hard stop loss at 8 pips above the previous candle high or 6 pips below the previous candle low for EURUSD and GBPUSD.

I wish you give me the confidence back to deal above sistuations.


I am happy to tell you that no trader can help you with your confidence,i have once been in your shoe so i know what am saying.Please do not shift your attention from this forum and try a bit to trade a demo account as i can see that you presently don't have a trading plan that you stick with.Your money management too is a little shaky and loose,from my experience that is very bad.I burnt three different accounts because of a bad MM,and also loose part of a very big account because of flirting around with different trading plans which i had to caution myself of very early before i loose much.I belive you'll equally bounce back big time with the help of friends,colleagues and our senior members around.Pipping is something you'll definitely enjoy for the rest of your life.
Enjoy it 1st with virtual money,later trade it with big money and you'll be ok.Moves like that in cable and fiber on friday are just too risky to trade for a trader like me.I'll rather enter with my plans.Though i made some pips trading it,but once my target were met i stepped out.Please be carefull and enjoy urself
Happy Pipping!!!!!!!!!!!
  • #6,633
  • Oct 25, 2008 10:12am Oct 25, 2008 10:12am
Thanks Bobokus and everyone's advices and encouragement. I did have bad and loose money management and risk control. From now, I will back to demo to work on them, not to risk 3% account by adjusting the account size in every trade and must use hard stop for discipline. I hope my mistakes can give all new trade a warning: money manegemnt is more important. I felt not hard to find entry, but hard to discipline myself. Bobokus, all mistakes you said is what I did. I must change bad habit now!

Bobokus, you suggest to trade large time frame, like Daily. I have looked your Daily Fib trading thread, and I didn't get sense as you add some indicators. Maybe I should trade 4H time frame, so at least, I have 4 hours break, not to sit in front of computer. Can I use same rules as 1H to analyze 4H trade? eg. in daily downtrend condition and 4H chart, I will use the resistant Fib for last down move and supprt Fib for last up move, and I will look for short when the price rejected from resistant levels and break low of previous candle. Please give me some guideline.

Sincerely thanks everyone's support.
  • #6,634
  • Oct 25, 2008 10:36am Oct 25, 2008 10:36am
Quoting jren07
Thanks Bobokus and everyone's advices and encouragement. I did have bad and loose money management and risk control. From now, I will back to demo to work on them, not to risk 3% account by adjusting the account size in every trade and must use hard stop for discipline. I hope my mistakes can give all new trade a warning: money manegemnt is more important. I felt not hard to find entry, but hard to discipline myself. Bobokus, all mistakes you said is what I did. I must change bad habit now!

Bobokus, you suggest to trade large time frame, like Daily. I have looked your Daily Fib trading thread, and I didn't get sense as you add some indicators. Maybe I should trade 4H time frame, so at least, I have 4 hours break, not to sit in front of computer. Can I use same rules as 1H to analyze 4H trade? eg. in daily downtrend condition and 4H chart, I will use the resistant Fib for last down move and supprt Fib for last up move, and I will look for short when the price rejected from resistant levels and break low of previous candle. Please give me some guideline.

Sincerely thanks everyone's support.
I think you have spotted the main source of your problem which is not using stop loss. As Bo mentions he does not use stop loss most of the time but he knows what he is doing ,he has surely a mental stop loss and he knows when to exit so that he does not risk 40% of his account . But for us beginners I think it is best to set a hard stop in the beginnig until we get some experience otherwise we normally let the trade go against us too much with the hope that it might turn back to our advantage and in this way we expose our account to big losses .
  • #6,635
  • Oct 25, 2008 11:11am Oct 25, 2008 11:11am
Quoting jren07
Thanks Bobokus and everyone's advices and encouragement. I did have bad and loose money management and risk control. From now, I will back to demo to work on them, not to risk 3% account by adjusting the account size in every trade and must use hard stop for discipline. I hope my mistakes can give all new trade a warning: money manegemnt is more important. I felt not hard to find entry, but hard to discipline myself. Bobokus, all mistakes you said is what I did. I must change bad habit now!

Bobokus, you suggest to trade large time frame, like Daily. I have looked your Daily Fib trading thread, and I didn't get sense as you add some indicators. Maybe I should trade 4H time frame, so at least, I have 4 hours break, not to sit in front of computer. Can I use same rules as 1H to analyze 4H trade? eg. in daily downtrend condition and 4H chart, I will use the resistant Fib for last down move and supprt Fib for last up move, and I will look for short when the price rejected from resistant levels and break low of previous candle. Please give me some guideline.

Sincerely thanks everyone's support.
Yes, they work the same on the Daily and 4 hour timeframes as they do on the 1 hour, the difference is using smaller lot sizes because with the Daily and 4 hour timeframes your stoploss points are much larger. You wont get as many trades and youll definately have to have more parience because if you go with the Daily it may take several days sometimes before a trade or opportunity arises, I have been short on GBP since 7278 on the Daily chart and short the Euro from 1.3555 from the Daily chart, not every Daily trade will run like this, they were just good timing.
You can use the Daily chart the same way we do here and trade from the 4 hour chart with just the Support and Resistance tools using them the same way we use the Intraday and Swing on the 1 Hour timeframe. I made up some templates for ya here to start using and experimenting from and they are set for the opening going into next week. On the Daily the Retracement fib isnt set and wont be until we get some retracement into this last leg down of the Downtrend, once its starts to break Daily candle highs you can place the Retracement fib.
On the 4 hour youll want to use the Support and Resistance fib the same way we use the Intraday and swing on the 1 hour. The Resistance fib goes on the moves than go down and the Support fib goes on the movements that go up.
If you want to use the same thing on the Euro instead you can simply transfer the tools to Euro charts because the templates wont work on a Euro chart, but you can set up the charts yourself by transferring them manually, setting up the charts should be part of making your analysis anyway since it gives you a perspective once your done setting it up.
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  • #6,636
  • Oct 25, 2008 3:00pm Oct 25, 2008 3:00pm
Hey, I was looking at this chart of GBPCHF and there could be a short opportunity:


This is a 4 hour chart
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  • #6,637
  • Oct 25, 2008 3:24pm Oct 25, 2008 3:24pm
Quoting misterboy
Hey, I was looking at this chart of GBPCHF and there could be a short opportunity:


This is a 4 hour chart
I dont normally look for cross pair trades, but there isnt a short signal there yet, alot will depend on what happens with GBP and CHF against the dollar after the open.With CHF having a good bullish week and GBP ending with bearish week that pair could stall out, need to see GBP and the CHF trending in the same direction. Too many fundamental things to keep up with trading cross pairs.
  • #6,638
  • Edited 9:27pm Oct 25, 2008 7:21pm | Edited 9:27pm
Quoting Bobokus
I dont normally look for cross pair trades, but there isnt a short signal there yet, alot will depend on what happens with GBP and CHF against the dollar after the open.With CHF having a good bullish week and GBP ending with bearish week that pair could stall out, need to see GBP and the CHF trending in the same direction. Too many fundamental things to keep up with trading cross pairs.
Hmm..so how do you find out whether they are trending in the same direction? Do you see them both against the USD? In this case would it be GBPUSD and USDCHF? Thanks for the help...Also, I dont seem to know about fundamentals too much accept the news on the economic calendar. I dont know what to read, any ideas would be great.
  • #6,639
  • Oct 25, 2008 8:27pm Oct 25, 2008 8:27pm
Bo, I think most people understand risking a small portion of capital ( 2% seems to be the basic rule of thumb ) on any given trade, but what I think is lacking with most traders ( my self included ) is deciding 1) setting actual or mental stop losses for a given trade. Should it be a certain number of pips or based on previous support and resistance. Sometimes previous support and resistance is pretty far away so your exposure can be great, but at the same time you don't want to be too close and be stopped out. What is your basic rules Bo? Do you pass on trades if your exposure ( potential trade risk to reward ) is too great? What do you do define the risk as too great? I think sometimes if I knew what trades to pass in those instances it would help me manage my money. Thanks for your insights and knowledge.
  • #6,640
  • Oct 25, 2008 9:37pm Oct 25, 2008 9:37pm
Quoting misterboy
Hmm..so how do you find out whether they are trending in the same direction? Do you see them both against the USD? In this case would it be GBPUSD and USDCHF? Thanks for the help...Also, I dont seem to know about fundamentals too much accept the news on the economic calendar. I dont know what to read, any ideas would be great.
Youll have to chart both the GBP/USD and the USD/CHF
GBP/USD 1.5902 x USD/CHF 1.1696 = 1.8598...(GBP/CHF). GBP/CHF is just the end result of the 2 pairs. If one pair is trending up and the other pair is trending down GBP/CHF will be choppy, If both pairs trend in the same direction GBP/CHF will make good moves.
Fundamentally youll have to pay attention to the events that will have a direct effect on both pairs GBP and CHF.
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