There are quite a few concepts that I discussed this week in my “Forex in Focus” talk…I do this every week and while I go through the current market view, I also try to share some of the overarching themes that guide my pair selection and my trades.
Two of these are my price movement range tool (PowerStats) and the concept of finding the “tomato can” in the pair that you want to trade.
The first PowerStats, I have considered by not-so-secret weapon (you can learn more from Autochartist and many brokers offer this service for free, and that list is on the Autochartist website) as long-time, avid user of the product and as a former instructor and analyst for Autochartist, sure, I’m biased, but the insight that historical price movement by range of day and hour offers an advantage that no other tool or indicator does when it comes to timing entries, placing orders, and understanding what “parabolic” truly is. I will definitely have a future post on this soon since I think everyone can benefit from it and there’s an excellent chance that your broker is an Autochartist partner…
Next, is my tomato can concept and this is frankly what finally made forex click for me many, many years back: Since I am trading one currency against another, I can benefit from one half of the pair being weaker than OR stronger than the other half and this “driver” alone can be enough to move the pair higher or lower…BUT IF BOTH currencies are contributing to movement I have the weaker “tomato can” currency and the stronger currency. When I have this, I have the pair firing on both cylinders, since the synergy of both currencies can move the pair higher or lower with more organization and momentum. I also ask myself: Which is the “tomato can” (weaker) currency of this pair? If I don’t have a clear answer, I will move on for that session.
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