Forex pairs

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Guest

Forex pairs

Post by Guest »

Good Morning DG traders

I'm almost half way through the course (lesson 10), and I'm already being blown away, seriously, by watching support and resistance zones holding and breaking, watching c-waves occur and actually having a positive reflection on price action. I trade mostly forex and occasionally CFD's.

I do want to raise a point about trading currency pairs, which is, the 3 positions i currently have (EUR/GBP, EUR/USD, GBPJPY) are conflicting. My EURGBP is testing its daily resistance and is in a slight negative position, while my GBPJPY pair are enjoying a daily and weekly pldot push!

The obvious lesson for me here is not to trade cross related pairs without experience. But is there a way of anticipating strengths of energy within the pairs?


thank you,

ZG
Guest

Re: Forex pairs

Post by Guest »

The first and most important point would be that each symbol has it's own energy, its own patterns, and it's own characteristics. And properly so, for why should the economy of Great Britain have the same relationship to the European Union as does the US economy? And Japan is off in it's own world and so has it's own economic issues. You should trade each currency pair on it's own chart and not place a lot of emphasis on influence from outside the chart.

The second point is, there is no reason why you can't trade multiple Forex pairs at once, providing that you can keep it all in mind and trade each chart separately.

As to anticipation... the HTP usually leads the way and wold be the first place to start when anticipating the next move.


Ted
ziad
Posts: 2
Joined: Tue Dec 16, 2008 5:31 am

Re: Forex pairs

Post by ziad »

Hi Ted,

Thanks for the reply. Clearly i was looking at the situation the wrong way. Just to note i had been taking into consideration the HTP, as it seems to make sense to work down from there to FTP, then LTP.

I will go back to review the lesson.

I do have a question regarding a point made in lesson 12 about anticipating the strength of block levels, more specifically, the first block level formed after congestion entrance, that is;
would it be fair to say that weak strength in the first block level can be expected? if the energy in the resistance levels (and areas of distribution) are strong enough to force a trend to terminate, then it can be seen to be strong enough to break through the first level of support? (assuming congestion entrance after an uptrend).


Thanks,

Ziad
pldot
Site Admin
Posts: 779
Joined: Sun Apr 27, 2008 10:52 pm

Re: Forex pairs

Post by pldot »

No, can't say that first block level is always strong, as it depends on many other factors, such as strength of HTP move, etc.
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