Friday, December 14, 2007
If you are trading the Spot Forex market, it is imperative that you know how the currency you are buying/selling is performing against all the majors.
While most traders are using a wealth of indicators, you should first start by simply comparing the currency you are looking to trade against all the other majors. For instance, if you are looking to buy the USD against the Yen; first confirm that the USD has more strength against the Yen. This a lengthy task to complete if you have to scan multiple charts, but if you have a utility that can look at data for you, that would be better.
If you are using Metatrader 4, you can try this study. It works like a cell phone. The more bars, the better if you are buying. The opposite also applies.
Below is a snapshot of my version that I use on eSignal.