Ok, now we all master the entry signal.
We also master the art of identifying correlated currencies.
In the previous example we bought the GBPUSD and, by relying on USD & JPY correlation, we also bought the GBPJPY.
Now we are all happy with our "doubled" pips.
Really?
That's it?
Aren't you forgetting something?
That's the most you can do?
Try this:
Divide the GBPJPY rate by the GBPUSD rate at the point of entry.
Store the result.
Now look at the USDJPY rate at that point.
Compare it to the stored result.
Ahhhh ?!?!
By the division of the GBPJPY by GBPUSD - we eliminated the common DENOMINATOR - i.e the GBP.
and we are left with USD & JPY.
So by clearing the dust from second-grade math lessons we can conclude:
If you SELL the GBPUSD and SELL the GBPJPY - you can also SELL the USDJPY.
Instead of "doubling" our trade - we can "triple" it.
Thank you - dear Math teacher...
G.
We also master the art of identifying correlated currencies.
In the previous example we bought the GBPUSD and, by relying on USD & JPY correlation, we also bought the GBPJPY.
Now we are all happy with our "doubled" pips.
Really?
That's it?
Aren't you forgetting something?
That's the most you can do?
Try this:
Divide the GBPJPY rate by the GBPUSD rate at the point of entry.
Store the result.
Now look at the USDJPY rate at that point.
Compare it to the stored result.
Ahhhh ?!?!
By the division of the GBPJPY by GBPUSD - we eliminated the common DENOMINATOR - i.e the GBP.
and we are left with USD & JPY.
So by clearing the dust from second-grade math lessons we can conclude:
If you SELL the GBPUSD and SELL the GBPJPY - you can also SELL the USDJPY.
Instead of "doubling" our trade - we can "triple" it.
Thank you - dear Math teacher...
G.