[Eric Johnson]

Hi, I am looking into a few new areas now, and wanted to see if anyone had some comments to share about related systems.
First is finding a fairly reliable relationship between cross pairs following each other. I mostly trade 5 minute bars and am looking for 20-30 pip runs. Like on Thursday before New Years, the EUR/ USD lead with some dramatic moves, then about 30 seconds to a minute later the AUD/USD followed direction.
Next is the EUR/JPY, it oscillates in a trading range of about 15-25 pips often. If I see it stretch a range, and the other pairs (AUD/USD, EUR/USD, or USD/JPY) are not moving quickly, then I fade the stretch of the range. The spread is wide, but it is paying on the demo.
Thirdly the beauty of the USD/JPY to follow through on channel breakouts for 100 pip runs.
These are all new ideas that I am demo trading, hope somebody has some insights. I have been posting some of my used strategies on the technical trading thread, and will update it with some of my hourly bar swing trade methods in the future.

[thalestrader]

Originally Posted by Eric Johnson »

Hi, I am looking into a few new areas now, and wanted to see if anyone had some comments to share about related systems... These are all new ideas that I am demo trading, hope somebody has some insights. I have been posting some of my used strategies on the technical trading thread, and will update it with some of my hourly bar swing trade methods in the future.

I don't have anything new, and it might be a bit boring to you if you are looking for fancy intermarket analysis or indicator combinations, but you might find some useful things in the Reading Charts thread found here:

http://www.traderslaboratory.com/for...time-6151.html

Best Wishes,

Thales

[Eric Johnson]

Hi thanks for that direction, I will work my way through more of it this week. I like the idea of a live recorded chat. Things like pair interactions are hard to study historically, when even a one minute bar hides what happened in real time.
I can see you have been around the trading world. Is there a general post number area that deals with the idea of a currency leading and following another? Is there any general statements you could make pertaining to my questions?

[Kiwi]

Originally Posted by Eric Johnson »

Hi thanks for that direction, I will work my way through more of it this week. I like the idea of a live recorded chat. Things like pair interactions are hard to study historically, when even a one minute bar hides what happened in real time.
I can see you have been around the trading world. Is there a general post number area that deals with the idea of a currency leading and following another? Is there any general statements you could make pertaining to my questions?

I will make a few.

1. It is amazing how people trading currency pairs forget that if USD is in 4 of them then all of them will be affected by the relative USD move (think risk). It is true that less active pairs might not make a change immediately (even though the "true" value of the USD dropped say) ... so you might get lag although you'd need to qualify if its tradable and the edge exceeds expenses.

2. Its amazing how things that we see don't prove out if we do the stats because of the distortions our perceptions include. Damned shame really. So you need to test any "I think I see" situations. If you're lucky you'll find a real edge that others are not seeing but be prepared to be like Edison developing the lightbulb.

[charles1]

Since there are so many approaches that have been published it almost seems senseless to invent your own. i say the only way to know what style to use is to use it and see if it fits you. Trading is personal. Me I like chart patterns and price action, combined with fundamentals to see if it reacts or not, and I don't take my eye of the monitor, because I scalp. I get in just long enough to get the houses money, then I pull mine out and play with the pips I collected. I always reduce my position. If a pattern comes up that I feel has a foot I time it, I let it show me a hint, I pull the trigger knowing my risk. I take my commissions into account cause I could about face at any moment to collect pips. Hope that helped.

[Mr_black]

I am reading the Price Action and scalp like a Indian

[Eric Johnson]

Hi Mr black, What are you using to generate your arrows? Are those swing arrows?

I will follow up on my inquiry about using pairs to forecast and compare related movements. I focus on 4 pairs. I have found that the EUR/ USD and the AUD/USD usually travel together similarly. So I watch both of them for major direction indicators that could effect the pair. If the AUD/USD is breaking out of a strong channel up with force, I expect it pull the EUR/USD up with it, even if the EUR/USD is not showing the clear setup to move. Same idea for major support, resistance, daily pivots and formations.

For the USD/JPY and EUR/JPY, it is the USD/JPY that is the primary leading market and it's technicals should be given priority. I am focusing in the USD/JPY for it's ability to follow through on a channel breakout with lasting trends. I am not a big squeeze breakout trader, but this is the market I would do it on. The EUR/JPY is a kind of unpredictable follower and I found it difficult to micro scalp it on small ranges. I find it acting technically responsive only if the other pairs are just stuck in messy ranges.

Well nothing too specific, but I do enjoy having the pairs to compare, and choose the best one to get the best move. It is nice to get lucky on a delay play, but they are not a sure thing.

[markot]

Scalping is stressful and before u make solid Day pip ,u may get caught by trend and lose all ..however if u r in right place and right time ....