for me i never think about Forex pairs behavior ......thats too complicated to fathom .....I think about Single currency behaviour (Indexes)..........that drives everything for the 7 pairs any G8 currency is part of ...
heres all 8 ....use whatever you need ......remember they are all independent so cannot be scaled togeher if overlaid on same chart .....just patterns and shape and trends
so pick a currency and look at its behavior using standard PA and whatever else indicator suits .........once you understand what a currency is doing just follow its signals and add whatever secondary currency works best .....
trading pairs is like putting the cart before the horse - well in my books anyway
heres an example ......GBP is a big player in the G8 as we all know ......its volatile and it really moves .....like Yen ....in fact these 2 guys are more like twice as fast as all the others in G8 (Hint)....... heres the "G" (GBP) index (from last posts indicators) loaded onto a 5min GU chart ......I dont give 2 shits about what USD is doing mainly in a pair .....its normally dawdling along or rangy during scalp sessions .....if it leans in either direction thats even better for me to play into on something like GBP so can you see how the lower GBP chart offers a stonking support level bounce ? ....yes they do behave like standard pairs so anything goes .... however on the upper GU its fallen way down below that support level ......why ? ...........because usd in the pairing was very bullish and pushed GU pair beyond the support level ......so that pattern cannot appear on a standard chart where 2 currencies are blended ...I seek purity with thr use of single currencies so that trade would have been impossible to see on normal charts ....but it was there if you looked on indexes thats what i do a lot of the time - i see things no normal trader can see as they are using the wrong tools
and that is a serious Edge .......
one more example on daily's...
GBP tries to retest a resistance level ....but you can see that GU is already below that level ...why ? ....because the unshown USD index is hammering bull driving GU south faster than GBP can handle
To me this is the perfect trade ......much better than the last signal .....i have GBP 70-80% certain to reject at R level and usd already driving GU south ..........no brainer to sell it and make money
"his hands cant hit what his eyes cant see" (mahammad Ali)
