Happy Forex New year 2009
Hope your trading is going well - its late to wish you all a happy new year - but hey! - happy new year anyways!!
I haven’t written for sometime & got a few emails asking if I was ok - thanks for your concern! - appreciate it. Just got busy with work.
Interesting thing - since Jan - I started trading more volatile currencies - such as gbp/jpy, gbp/chf & gbp/aud - along with gbp/usd (my favorite pair)
I noticed a few patterns - typically gbp/aud is the odd kid - gbp/usd used to be the odd kid when I was trading majors - when i say odd -I have a different opinion of “odd” -here’s my definition:
Go to a park or church or someplace where families hang out - you will notice that typically there are few kids (not all kids do this) who try to outrun their parents - they have so much energy they can’t wait to keep pace with their parents - so either they start dragging them by hand or keep running ahead of them and coming back to the parents - etc… - gbp/usd pair is like that kid who has too much energy and can’t stay quiet for a long time.
if you ever followed gbp/usd & eur/usd together - you will get what I am talking about - gbp/usd always rushes into things - trends, sideways etc…and sometimes comes back to correct itself - most of the times is followed by eur/usd in the same direction.
When you place 4 gbp pairs together (gbp/chf, jpy, aud & usd) - then it won’t take much time to notice that gbp/aud is the more “active” one - some can “restless” - in doing almost always seems to contradict the other three - but here’s the good part - the remaining three pairs are in unison - they eat/sleep & move in the same direction - atleast that’s my observation.
so i completely ditched usd/jpy, chf & even eur/usd - which usually has a max-daily range of 75 pips (average) - unlike the last few weeks.
gbp/jpy seems to range atleast 200 pips in direction everyday - and usually more.
gbp/chf seems to range around 200 pips too
ofcourse gbp/usd has always had about 100-150 pip move on a daily basis in one direction.
gbp/aud can really move fast and if you are in wrong direction - its a slaughter and the spread could go as high as 30 pips - the spread itself makes me sweat.
I will keep you posted on the gbp-trades. Thanks for stopping by.
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