Hi everyone.
For the past few months I was attacking the market this way. I took 10 pairs, the majors, compiled as much data as I could on a daily basis. My strategy was to find who was the strongest down to the weakest, compiling a lot a data, the daily open close spreads, rating each currency against each other. “USD, EUR, GBP, JPY, AUD”. Daily to weekly. Their average daily ranges. Average weekly ranges. Highs and lows of the day. I thought I was on to something. I spent a lot of time running the numbers to see who was on top to who was weak. More than just the daily spreads, I went to comparing each other from each of the 3 sessions, (asia, london, usa) also.
Ok. That’s nice. I don’t think I got anywhere. Just a bunch of numbers and the fact that I could carry on a conversation about who was stronger than the others.
So, now, after much pondering, I’ve decided to attack it this way. Well, at first, I was going to pick one currency and follow their numbers compared to everyone else. And I did, the GBP. Ok, that’s nice. Now what? More figures to look at and going nowhere. Sure, everyone knows if GBP is up on the dollar, their up on the EUR. Btw, the JPY and AUD are very peculiar. They are in bed together. Ok, that’s nice. But, still getting nowhere, meaning, trying to find insight on their future price action.
Speaking of price action, I’m on it now. Been aware of that thinking, and after reading much of PA on baby pips, I am all in.
NOW…I attack the market this way.
Price action.
One pair. GBP/JPY.
Run the numbers…daily, by sessions, ADR, AWR.
Finding characteristics of this pair.
Oh, and now I am reading a lot from you guys on this GREAT web site. I can’t do this alone.
So… thanks for listening, and if anyone follows this pair, can we compare notes? This past week was the first for me on this. Took much notes on what happened. Very interesting.
Mike