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Leading pair and which pairs follow

  • #1
  • First Post: Jul 25, 2014 5:21am Jul 25, 2014 5:21am
Hello!

Does anyone know if there is leading pair or pair which shows move first and then some other pair follow it or goes other way?
What I'm looking for is that one pair move some pips in one way and then some seconds later some other pair do the same or goes other way. I would like to try it with binary options using 30 or 60 seconds strategy.

Thank you!
  • #2
  • Jul 25, 2014 5:47am Jul 25, 2014 5:47am
They don't follow one another, they move simultaneously. Think of individual currencies moving up and down against each other rather than pairs moving. When a currency increases or decreases in value, it does so against all other currencies.
si hoc legere scis nimium eruditionis habes
  • #3
  • Jul 25, 2014 7:50am Jul 25, 2014 7:50am
Quoting Jure86
Hello! Does anyone know if there is leading pair or pair which shows move first and then some other pair follow it or goes other way? What I'm looking for is that one pair move some pips in one way and then some seconds later some other pair do the same or goes other way. I would like to try it with binary options using 30 or 60 seconds strategy. Thank you!
This is very hard to answer. Better if you can stick with one pair as you prefer short term strategies.
  • #4
  • Jul 25, 2014 12:07pm Jul 25, 2014 12:07pm
As for example. I'm looking at EURUSD, EURJPY, GBPUSD and GBPJPY. Pair I'm going to trade is EURGBP. With first 4 I would like to get a picture which one is stronger EUR or GBP and then trade EURGBP.
For binary options I only need to know if EURGBP will finish higher or lower in next 30 seconds (1minute, 2 minutes or 5 minutes,...) compared with time I get in market.
Any idea is welcome. Thank you!
  • #5
  • Jul 25, 2014 3:10pm Jul 25, 2014 3:10pm
Quoting Jure86
With first 4 I would like to get a picture which one is stronger EUR or GBP and then trade EURGBP.
I think you're not really understanding how currencies move in relation to each other, and how that movement is measured in pairs. EUR/GBP is not the same as a major, it is the result of EUR/USD and GBP/USD. If you take a calculator and multiply the current price of G/U by E/G, the answer will always be E/U (minus the spread). Its like the mathematical "family of facts" you learned in school:

6 x 3 = 18
3 x 6 = 18
18 / 6 = 3
18 / 3 = 6

If one of those facts is true, then the other three are automatically and necessarily true. If 18 / 6 = 3, then 3 x 6 automatically equals 18; it doesn't move itself towards 18, it doesn't become 18 a few seconds later, it just is. Currency pairs are the same.

G/U x E/G = E/U
E/G x G/U = E/U
E/U / G/U = E/G
E/U / E/G = G/U

Try this with ANY combination of currencies, the result will be the same. If one of the facts in the "family" is true, the other three are automatically true. This means you can't exploit relative shifts the way you are thinking; if you notice that 18 / 6 = 3 and 18 / 3 = 6, you can't exploit the fact that 6 x 3 should equal 18; you can't sneak up behind 6 x 3 and catch it before it gets to 18. It just IS 18.
si hoc legere scis nimium eruditionis habes
  • #6
  • Jul 26, 2014 5:11am Jul 26, 2014 5:11am
Understand, but is there a couple of pairs (any two, three,...) where one makes move little before then the other?
  • #7
  • Jul 26, 2014 5:23am Jul 26, 2014 5:23am
Gold and USD/CHF react like this. I think USD/CHF is ahead of Gold which moves then in the opposite direction.
  • #8
  • Edited 8:26am Jul 26, 2014 8:20am | Edited 8:26am
Quoting Jure86
where one makes move little before then the other?
//----

hey jure.... to get a rough visual idea which, if any, pairs lead or follow you can create dashboards that contain every pair with it's signal position for every day..... or use any timeframe.... the picture below is lookin at the tsr signal on every pair for each bar of the last 5 months..... simply a red dot if tsr is falling green dot if is rising...... you need to look at 12 months..... the left most dot, not the ones with 0's in them, is todays signal..... each dot contains the closing price so you can compare the difference in price between any 2 dots..... it's impossible to easily explain all that is capable with that.....

moving averages work best but that ea can select between about 20 other indicators...... you can get a rough visual idea......

to get a more precise idea, you would need slider lines such as in the video below seen at about minute 10..... in that video they are buying the charts pair only.....

just imagine using the same concept on the picture below..... sliding the green buy line across to the picture below to any point and then selecting all pairs to buy or sell on that bar..... and then moving the red line to the sell point..... the ea will add up the profit/loss of all pairs.....


//----
this from 21vs7 thread,,,,
Quoting hayseed
very often a signal on one currency pair is best traded on another..... as example, if a buy macd cross signal on the gbpusd occurs, buy the eurusd instead......
//------

the video below is just me teachin the rugrats how to trade this summer..... correction, slider line explanation in the first 2 minutes......h

//-----
Inserted Video
Attached Image (click to enlarge)
Click to Enlarge Name: buyusdjpy.png Size: 104 KB
to trade and code, keep both simple... no call to impress....h
  • #9
  • Jul 26, 2014 8:37am Jul 26, 2014 8:37am
Hayseed,

Nice video for the rugrats. I hope you are doing well.

Regards,
Jeff
  • #10
  • Jul 26, 2014 8:43am Jul 26, 2014 8:43am
Quoting Jure86
Hello! Does anyone know if there is leading pair or pair which shows move first and then some other pair follow it or goes other way? What I'm looking for is that one pair move some pips in one way and then some seconds later some other pair do the same or goes other way. I would like to try it with binary options using 30 or 60 seconds strategy. Thank you!
Hello Jure86

There is a tendency for this to occur, but it is not significant enough to trade only based on watching a parallel pair. Example of parallel pairs: GU and EU.

I use what you are describing to trade spot FX on an intraday level. But it is my last consideration in my trading progression.

I actually used this technique twice in the last 2 weeks successfully. Once on the Eu and once on the AU (yesterday). But again this was incorporation with a number of other variables I use to determine whether to enter a position.

IMO you would not see long term sustained results using what you are describing as a leading indicator to determine whether to enter a position. Especially with short term binary options.

If you are an experienced FX trader, and have a detailed progression you use to enter a position, then I would investigate using a tick chart incorporated with your current system of trading, to trade binary options.

If you don't have much experience, I would stay away from binaries.

Good Luck
  • #11
  • Jul 28, 2014 8:16am Jul 28, 2014 8:16am
Thank you all!
Yes this is what I was thinking about, like USDCHF and GOLD. Are there any other pairs like this two.
  • #12
  • Edited 7:58am Jul 29, 2014 7:44am | Edited 7:58am
I'm looking at EURJPY and CHFJPY. I think EURJPY shows as where CHFJPY will move or vice versa, it depends on which one shows as move first. Same with EURUSD and USDCHF just that they move in opposite way. What do you think? I'm I right?
  • #13
  • Jul 30, 2014 4:55am Jul 30, 2014 4:55am
Quoting azjeff
Nice video for the rugrats. I hope you are doing well. Regards, Jeff
//----

hey jeff..... we're doing fine ...... hope you are also...... so many of the guys from the past are now silent, glad too see a few us refusing to give up.....

been teachin the rugrats how to trade this summer..... peyton, only 5, is beatin the heck outa me..... dang know-it-all-newbies...... ......

happy trading.....h
//-----
to trade and code, keep both simple... no call to impress....h
  • #14
  • Last Post: Jul 30, 2014 6:16am Jul 30, 2014 6:16am
Quoting hayseed
{quote} the video below is just me teachin the rugrats how to trade this summer..... correction, slider line explanation in the first 2 minutes......h //----- https://www.youtube.com/watch?v=D3pIxdCWMPo {image}
Good morning Hay. That's one of the most adorable things I've seen in quite some time. ...
Ghost Rider - WWTBMD?
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