Is Forex the Matrix

Trading Systems
1

Okay maybe not the Matrix but some weird video game that we’re all trying to figure out?

Literally was just looking at all the major pairs on the weekly, daily and 1 hour charts and THEY ALL MOVE THE SAME WAY!

For most of them that have not had any significant news happening this past week, they all show the same exact pattern on the daily, weekly and 1 hr.

The only difference is that some pairs are further along in the trend, others are in the middle and others just at the start of the trend

What i’m referring to on the weekly is that most of the majors have this W shape happening and has already broken out or is about to break out over a 200 moving average.

What i’m getting at here is could we actually use some pairs to predict where the trend will go on those pairs that are still at the formation?

for example, usdchf is far along the trend on the weekly where as euraud is just starting.

usdchf doesn’t show the w that clearly because its a pair with big spikes but on a more calmer more trendy pair like euraud, it’s easier to see

ALSO,

I’m about to enter a trade on euraud for a buy. The formation I see on the weekly, daily and 1 hour at 11:12pm December 22nd LOOK EXACTLY THE SAME! there’s that W, then it crosses the moving average and spikes up since I see this on the 1 hour right now, i’m going to enter. I’ll tell you how I do haha

This is really interesting because now I think that in order for a great entry you have to be looking for the same pattern on the 1hr that is shown on the daily and weekly of that pair…

I use to use indicators but I threw them out, price action is now what I’m doing if this isn’t making sense to you

i’m a noob but this is definitely interesting

any thoughts?

2

ok, so you saw a pattern one time, did you check this pattern in history?

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I have looked at forex pairs and their price behaviour relative to each’s underlying long-term trend. Its hard to do this in detail for 28 pairs so I focused on my main interest which is with-trend price action. I marked each pair with the 20EMA above the 50EMA as an uptrend and the 20EMA below the 50EMA as a downtrend. I checked which way price moved daily on each pair: normal for an uptrend would be a higher close: normal in a downtrend would be a lower close.

On most days prices across most of the 28 pair move with-trend. But the proportion of with-trend days is not great, its less than 60%. And the percentage of pairs which move together on these days is not massively one-sided either, its about 70%.

The same happens on non-trending days - about 70% of the 28 pairs all have a non-trending day on the same day.

So these outcomes are obviously not as impressive as a DNA test but even this crude information is useful. On most days, most pairs follow the trend. On the days when most pairs don’t follow the trend, performance is not random - that would be 50% - on those days most pairs go against the trend.

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For the most part, everything is correlated, whether it’s positive or negative. When there’s a price surge it usually happens right across the board. Same thing on a slow day. This is why over-trading is such a common problem, people don’t take this market correlation into consideration. The best way to trade currency pairs is one pair at a time.

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check out this link here if you’re interested

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I definitely agree with this now, In my opinion I think gbpusd and euraud are the most clear to see price action

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not one time lol if you look for a very clear as day big W and M pattern you’ll see that the W is formed, retraces a little and then shoots up. Same with M but shoots down. This repeats itself all the time. Often these form right before a breakout but of course i’d only take the trade on a lower timeframe if the higher timeframes were aligned with the trend.

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Constant observing and questioning can only be beneficial

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So, you saw W and M patterns on different currency pairs and assumed it is ok, but just to be more specific, there are 7 majors EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, USD/CHF (EUR/AUD is not major pair :slight_smile: ). Three time frames per pair is 21 different charts, I asked which pair and time frame did you check? If you checked last week history data, it is still one time :wink: Regards Greg