In this video I discuss the way I determine relative strength amongst my favorite currency stories and how I position my entries within the “zone” and how that can effect my position size. The quality of the daily trend (Directional Bias) is a major consideration and helps me eliminate certain pairs from my Radar. This is a vital step to keeping my attention on those pairs that I am interested in entering or that I am managing. Far too many traders spread themselves too thin across multiple pairs when they do not have an EDGE. That edge for me is a clear trend on the daily time frame, even if I am trading intraday because I want to be on the side of the overall, dominant psychology.
The GBP and NZD are two currencies I want to get long in – but against which other currencies. Understanding the two “individual” currency stories in a pair therefore is important. Positioning sizing will also be effected by which relationships are my “favorite” and I explain how I determine that in this week’s video.
You can learn all about my indicators – the 34EMA Wave and GRaB Candles where I discuss these two tools in details as part of my overall trading plan.
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