I found a simple strategy for these 2 pairs. Basically you over lay on 1 hour charts, wait for a good disparity between the pair with GBP/USD on the bottom. Long the GBP, Short the EUR and wait until they converge. If the trade continues to widen (200 pips +) consider another trade to capture even more of the disparity.
Im having some issues with currency ratios and knowing when to get into the trade (just follow the 1 hour or use more then one chart).
Does anyone know of some good training material on this that expands the concept?
And what happens when the market just keeps going? Take a look at a EUR/GBP (which is what you’re trading) and you’ll see that it can have some very strong and sustained trends. If you get caught on the wrong side of one of those you’ll watch in horror as your account equity disappears - especially if you’re adding to the trade along the way.
I know - hence that is why i have not traded it since 27th.
I also trade the NZD/USD,AUD/USD AND GBP/JPY,CHF/JPY
I have only been using this for a couple of weeks - and so far if I avoid being greedy (entering trades i know i should not), with trades having at least 200 pip disparity i can narrow my losses to a very minimal.
My problem is where to I set my stops? Because i know there will be a day when everything goes to hell in a hand basket…
A period of multi-week consolidation has now been broken to the topside with the market extending gains to fresh 2009 highs beyond 1.4340. The break above 1.4340 confirms a medium-term higher low in place by 1.3750 and opens the next upside extension back towards a measured move objective into the 1.4900�s over the coming weeks. Back under 1.4205 would now be required at a minimum to relieve topside pressure and potentially negated bullish outlook.[dailyfx]
I think all FA analysis and data is thoroughly explained by viewing the monthly/weekly/daily of this pair. All idiosyncrasies voiced by the retarded op are clearly visible at just a few glances of this pair in action. News out of Eurozone Gbp, which is reality is examining the droppings, something that doctors do to establish colon health or lack thereof, go to the mouth instead, the incipient aborning problem pre-oesophagus and mesenteric, meaning view EurGbp in Daily mode and watch how she foretells the luminescence and viscosity of the stools cascading out of Eurozone’s rectal orifices. Tucson Apartments
