Hi,
we have 8 major currencies and each of them makes 7 pairs with others.
Let’s assume that last readings brought very bad news for one currency of those 8.
That news was bad enough to predict that price will go in direction of readings at least for hours so
there is a situation where whichever pair of 7 I choose I will take a profit.
So, which one to choose?
How to determine which pair of 7 has the biggest potential to bring the biggest profit.
Is there a method or rule to determine that pair before News?
Details, please.
Thank you
Just look at all the charts.
If the news is from the US, & you’re expecting good, bullish news, then you are looking for a weak currency to trade it against so just compare them. Look at EURGBP & see how that’s trending & pick the weakest (EUR if it’s going down, GBP if it’s going up). Then compare that currency with the next eg. EURJPY & find which is the weakest & then compare that with the next & so on & so on until you have the USD against the weakest of all the other currencies.
Always go strong versus weak as we don’t want a battle between the two pairs when the price wants to move, we want a proper onslaught & a big, easy move.
If you study at the pipschool you will have a better idea which currencies are correlated, which are safe havens, etc, so will be better placed to choose for yourself
Buz,
thank you for practical advice