Ricex
Sergeant
- Messages
- 358
Just to add to cowmadagans response about the weak vs strong. As a trader you should be aware on longer term timeframes which currency is doing what, you just need to look at your charts to get an overall picture, a daily or 4hr chart can give you a lot of information. The dollar index chart will also give you an idea if the USD is in a strong or weak phase, knowing interest rates for currencies is also important. Every little retracement is not to be looked at as a major change in the currencys strength.
Currencies tend to stay in the same phase for the duration of a session and then will sometimes reverse going into the next. Nothing is 100%, we are always trying to put the probability of something happening on our side, and going long a strong currency carries a lot more probability of a result than going short. Trading a pair of weak vs strong carries greater probability of a result than trading two strong.
Currency trends rarely just suddenly change direction, it takes time. I think you may be looking to closely at the charts, step back a bit and get a feel for what's happening from larger timeframes. If a currency pair is in a major trend, like for example the AUS/USD pair was last year then yes it can be very easy to make money. As I said before, a retracement of price does not mean that the pair have suddenly changed from bearish to bullish or visa versa.
Currencies tend to stay in the same phase for the duration of a session and then will sometimes reverse going into the next. Nothing is 100%, we are always trying to put the probability of something happening on our side, and going long a strong currency carries a lot more probability of a result than going short. Trading a pair of weak vs strong carries greater probability of a result than trading two strong.
Currency trends rarely just suddenly change direction, it takes time. I think you may be looking to closely at the charts, step back a bit and get a feel for what's happening from larger timeframes. If a currency pair is in a major trend, like for example the AUS/USD pair was last year then yes it can be very easy to make money. As I said before, a retracement of price does not mean that the pair have suddenly changed from bearish to bullish or visa versa.