DislikedBrokers just don't care. The spread IS what restrict such a thing. The spread naturally comes from the lack of opportunity which reduces the liquidity. LP make money on big spread here and on a lot of small spread on the majors. They cannot make money on a lot of small spread on E/DK because they would make no money.Ignored
Buy at alltimelow and sell at alltime high ? Is there enough money/liquidity in the entire market to do so? What if a 1000 pip spike appears and wipes my entire account ?
QuoteDislikedYou can also build the same kind of index for each of the 7 majors. Deduce the strongest curreny and the weakest one and look at the chart of their cross ;-)
=> http://www.forexfactory.com/showthread.php?t=163158
I see but does it really matter which one i build it.The objective would be to pick 1, where i picked the EUR/USD because its popular & low spread, and try to find autocorrelations in the composed pair made up of those other currencies which then can predict the EUR/USD in real time.
In case the EUR USD would be too random, or less information carrying in the candlesticks about the future price, but still a global event has been happening which will effect the EUR/USD in some way, in this case maybe the other currencies can show better the future price of the euro, then the euro itself.
Autoregression in my correlator indicator can very well predict the EUR/USD, whereas in the EUR USD it could be harder to detect ?
What about mean-reversion tehniques, a few carefully picked moving averages can smoothen my indicator, and could also show us some hidden information about the EUR/USD ?
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BTW Pipmeup you are giving me an excellent idea
The way how hannover did i could construct an indicator which shows the EURO and the DOLLAR's strength separately, by using all available EUR & USD containing couples.
This could also show the direction of the EUR/USD not only the correlations with itself, what a nice though, thanks!
"There's a sucker born every minute" - P.T. Barnum