Potential trade coming up on EUR/CAD. Notes: EUR -1, CAD +5, correlating sister pair is CAD/CHF, (CHF -2). Price have surpassed a strong area of support which have now become resistance, expecting market to retrace to our potential entry for a short position. Target will be recent lows. SL: above entry. TS: 50 pips.
Dec 04: Currently awaiting pullback followed by a failure at expected entry.
Hi! i am reviewing all of your posts, may i know what is the reason behind having a sister pair and how it helps in gauging the price movements? Thanks
Tradinggrouptw
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Hi Junboon,
Sister pairs move together, easy example is EUR/USD and USD/CHF. If you spot a long trade on EUR/USD, it is more then likely this will translate in a short trade on USD/CHF, so instead of making 50 pips on only EUR/USD you can simply add 50 pips by trading the correlating pair. However its important that the currency strength lines up on the sister pairs as well, if its lagging you want to stick to the leading pair. You would also want to look at sister pairs to understand a more ideal area of pullback or price halts. I hope this answers your question, let me know if you need further assistance :)
Merry Christmas !
junboon.poon
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Hi Carl,
Thank you for your clarification, it definitely clear some doubts.
So if EUR/USD is +5/-2, we will also want to find a sister pair that is more or less similar to EUR/USD? If USD/CHF is -2/+4, is it more or less similar? It means i can go long for EUR/USD and short for USD/CHF?
Do you mind explaining more about the lagging part? I also saw the checklists that you have created but i am not quite sure about point 11 (Update journal with target information). Do you mind providing me with more assistance? For the daily currency strength, do they fluctuate throughout the day or more or less it will stick to the strength that was tabulated?
Sorry for so many questions! I really like your posts on the currency strength and i am interested to find out more about how it works.
Merry Christmas and happy new year in advance!
Thank you!
Tradinggrouptw
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So first question about eur/usd and usd/chf. - Yes that is correct. Lagging vs leading pairs is a bit hard to explain without visuals. Step 11 on the checklist is is simply updating the target information after you have check with the sister pairs that everything lines up with your original plan of action. To get the best accurate currency strength through out the day i recommend that you update it pre-asian, london and new york opening. You can stick to only pre-london but it is not as accurate but it will hold true for the day. Trading Whales will be launching an iOS app and email subscription service for daily currency strength pre-asian, london and new york opening at the beginning of next year, you are more than welcome to subscribe :)
junboon.poon
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Hi Carl,
Thank you for your clarification on this issue. Learnt a lot from you. I would love to follow the iOS app and email subscription. Do keep me updated on your page on the release of it.