The way i’ve been thinking of it is…if someone says bullish…i think to BUY THE FIRST CURRENCY IN THE PAIR (place a buy order)…not to sell the second currency?
What’s the purpose of referring to it in this backwards fashion?
It states, bullish on USD/CHF ‘actually’ means a SELL on CHF.
This is like saying, “please don’t open the door when you leave”, when it actually means…“close it”. lol. ??
I don’t understand what the purpose of ‘referring’ to it like this…is.
…but then i would’ve placed a buy order…when they were actually recommending a sell order…which is indeed what happened.
USD/CHF went down…per say.
I understand that when you buy one currency, you sell the other in the pair. I just don’t understand why they refer to the overall ‘order recommendation’ backwards.
I may see where the confusion is … if someone says the swissy is strong, that would mean that USDCHF (depending on the relative strength of the dollar) would actually be bearish, as what you would want to do is sell the dollar with respect to the franc (since the currency pair’s value would drop as a result of the strength of the franc).
I hope I’m explaining this well, as I’m new to all of this myself.
That link was 2 weeks ago analysis. Price went up last week, but as we know, price moves in waves, so this week, price is retracing back down again. Now whether everyone thinks that bullish move of last week will continue after the retrace, doesn’t seem to be updated on that website that I can find…maybe too soon? IDK.
But that’s another example of a lagging indicator. News seems to make the headlines after the reaction is over, so yes it actually can be a good time to trade the opposite direction…
Thanks for your reply. I posted the link knowing that it was old, simply to illustrate it as an example.
I’m assuming that they’re simply, and only, referring to the first currency in the pair. As long as they always follow the same practice, i suppose i’ll know what they’re recommending!
