I just noticed a market phenomenom

i just noticed when the market moves, several pairs move at the same time
when it goes and consolidate, those pairs stay consolidated at the same time as well
i was trading many pairs at the same time, i noticed all of them moved at the same time
either in my favor or against me all at once
but there’s a difference, 1 pair will move for more pips, the other pair will move slower
and the graphs/chart looked a bit similar

the pairs i was trading were, usd/jpy, gbp/jpy, gbp/usd, eur/jpy
and i also looked at eur/usd and chf/jpy as well, their movements mimic each other closely as well

You may want to look at the correlation topic in the babypips school or elsewhere.


“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
-Mark Twain.

It is called correlation. The fact that certain currencies move greater or lesser distances compared to the other correlated pairs is usually a reflection of their relative strength/weakness to the other correlated currencies.

If you look a wee bit closer you will also see that one or two of the correlated currencies often begin their movements slightly before the others. They become the leading pairs. They can often serve as a heads up that the others will soon be moving in that same direction. One or two of the correlated currencies often begin their moves slightly after the others. These are the lagging pairs.

The other currencies have told you which direction they, the lagging pairs, are going – they just haven’t left the station yet. These leading/lagging moves are seen best on the shorter time frames (1 hour and less). It takes some practice to get used to but exploiting a move using leading and lagging pairs using price action at a S/R level can be a complete trading strategy in itself.

Finding and exploiting divergences among the indices works along the same principle.