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forexfx4x
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Everything posted by forexfx4x
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I will be covering my analysis approach in this thread. Basically I look to trade strong versus weak currencies. Price action is used to execute trades. Lets start with the recent currency strength chart and take it from there: We can see that the AUD and NZD are the strongest currencies and the CHF and EUR the weakest when referencing these charts. If you take a look back over recent trading you will see the NZD/USD broke a bearish head and shoulders. Knowing that it is one of the strongest currencies had me fading this bearish breakout. The AUD/USD gave a bullish engulfing candle last week, this was inline with the currency strength chart and therefore a buy. Sometimes, of course, the trend will reverse after entering a trade but trading strong versus weak is a trend trading approach and can be very effective if executed correctly. More posts to follow soon with charts.