Double in a Day trade 12 March
In general the AUD has a tendency to be weak and the GBP has a tendency to be strong. This provided a great double in a Day pending order entry on strong support when buying the GBPAUD. The transaction was lucky in that the top ups occurred when there were no major retracements. The trade needed a 120 trend but using one of the most volatile currencies provided the 120 pip trend required. A great Double in a day trade.
The following settings were used
The Relative Strength of Currencies made easier
Many Forex traders find the relative strength of currencies confusing because on certain charts a strengthening currency seems to cause the chart to go up and on other it causes the chart to go down.
Hopefully this article will shed some light of this for you.
When using the multiple currency trading technique of the WATO system we use 3 currencies to make sure that we are trading the strongest of theses currencies against the weakest.
To illustrate this we use this logic in this picture above (from Monty Python) if we told you that man 1 was taller than man 2 AND we told you that man 3 was shorter than man 2, LOGICALLY man 1 is taller than man 3.
When trading the With all the odds (WATO) system we use the same logic by introducing a middle currency.
So if we said that the EUR was stronger than the USD AND we said that the YEN (JPY) was weaker than the USD, LOGICALLY the EUR would be stronger than the YEN(JPY). The USD is used as a logical middle currency to emphasize and reference the strength differences and in fact leverages the moves on the EURJPY with more volatilty.
Every currency cross has 2 currencies. In the Case of the EURUSD the first currency (EUR) is the BASE currency and the 2nd currency (USD) is the QUOTED currency. When you buy the EURUSD you are BUYING the EUR and SELLING the USD at the same time. That is why it is so important to buy strong currencies and sell weak ones. When the transaction is closed (being stopped out or reached its target) the EUR is SOLD and the USD is BOUGHT at the same time.
So if the BASE currency strengthens against the QUOTED currency the trading chart will go UP. The CAD depreciated against the USD by more than 2000 pips recently