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April 02, 2014

Forex Secret


A picture is worth a thousand words


Slow and steady wins the race


Don't run if you don't know what is the right pair of shoes to pick up


Don't trade if you don't know what is the right currency pair to pick up


What is Relative Force concept?

 

This means that if one ASSET moves in a certain direction and other ASSET moves in the opposite way, then the pair moves twice the distance!

Example on GBPNZD:
GBPusd has done a correction about 500 pips on Scottish referundum
While this time, NZDusd lost 200 pips.

Relative Force = ( 500 - (-200) )*2 = 1400 pips
=> In theory, we can expect 1400 pips move on GBPNZD.
=> In practice and with some extension of time, we had 1700 pips move!

GBPusd ASSET

NZDusd ASSET


GBPNZD

Another clue that could confirm this massive up trend on GBPNZD... M Pattern



  • Example on March 2014

This Indicator calculates actual forces on market in realtime.
USD is the most performer on the board.
CHF is the weakest currency.
=> So this Indicator suggested to go Long on USDCHF




  • Example on September 2014


Index Currencies shows that: 
  • we shoudn't enter Long EUR as 62,41% of retail traders are Long EUR vs other currencies.
  • we shouldn't enter Short AUD as 71,82% of retail traders are Short AUD vs other currencies.
  • So, don't BUY EUR & don't SELL AUD => Go SHORT EURAUD

That's why in the same time, EURAUD has been shrinking drasticaly.





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