Yes the Snowman posted the most powerful images… I will try and explain.
Note : The chart below is a chart made up of EURUSD AND USDJPY added together.
So if the momentum (Setting 1 on daily) on the EURUSD*USDJPY (* = times by) we buy the EURJPY if its above the momentum zero line and sell EURJPY IF below the momentum zero line on the EURUSD*USDJPY.
So we can buy and sell the EURJPY without even looking at the EURJPY chart.
SO if the EURUSD is going down and the USDJPY is going down we know the EUR is weak and the JPY is strong.
The EURUSD is going down because of the EUR weakness and not USD strength. The USDJPY is going down because of the JPY strength and not USD weakness (EURUSD = down)-
So its best to pair the EURJPY. for a sell
Its going off topic again and don’t want a warning from the mods or Dennis and I think his approach has lots of merit… We just have to use other methods of when to buy/sell the weakest/strongest in his ratings.
If I made any mistakes. I apologize as I’m so tired… Long nap needed.