It seems to me that because trading volume* in EUR/USD and GBP/USD is so much higher than that in EUR/GBP, the price of the latter pair is highly dependent on what happens in the former two pairs. It's a bit like a straw blowing in a gusting wind - fairly hard to predict, unless there are strong fundamentals that only affect EUR vs GBP strength and not the relationship of the other two pairs.
This is why I no longer, or almost never, trade EUR/GBP.
I suppose that purely technical short-term moves may be an exception to this.
*[These numbers are in the annual reports for the International Bank of Settlements]
@DaveO: I'm probably being dense or missed an earlier thread, but what are E/W traders?
Fundamental Opinions getting in the way of Price Action: Yes, been there, done that, and it's sometimes not a pretty sight. Much more wary these days.
@Chloe: [February 1, 2011 17:33 GMT]: Yes, Ashraf can be a little cryptic sometimes. You have to try to fill in the gaps / read between the lines with your own knowledge, experience and research.
@DaveO: Many thanks. Actually I had just googled and found Accustrength (I already knew the name of Tom Yeomans). It's clearly a superior tool (and uses interbank data) to the one I have, which s indeed the one you mention. Yes, probably Tom Yeoman's "Mark I" model!
On: January 27, 2011 00:28 GMT, Said said: "eh montmorecy what indigo meter?"
@Said: I don't know why you say "indigo meter". Catnip has referred to a strength meter several times, a currency strength meter obviously. I know there are several around, some free, some chargeable.
Anyway, I have now done some reading around the subject, and I see that it is used in a slightly more subtle way than I had imagined, and of course, in conjunction with other information.
Catnip didn't reply (or I didn't see his reply). Maybe he didn't see my question, or perhaps prefers not to talk about it. Fair enough.
I am glad I have missed the Fundamentals vs. Technicals arguments. I won't be joining them. I would add though, that there is another factor, namely "Sentiment", which might be regarded as part of Fundamentals, not that it really matters what you call it, but it is important in trading I think. Ashraf is talking about this all the time, although he may not necessarily call it by that name every time.
I hope everyone had a good week, and has a good one next week.
@Catnip: Which strength meter do you use, if you don't mind my asking?
I know of one free one (for MT4, not sure if there are versions for other S/W), but I am somewhat sceptical of the whole premise, to be honest.
I know that the principle is to buy strength and sell weakness, but this also seems to depend on the principle that the future will behave pretty much like the past. I suppose if you also add in fundamental reasons, it's ok, but I still have my doubts.
Well, I bailed at 1.2997, but only because I am going to be away for a bit with no reliable or secure internet and I wanted to leave flat. Will be interesting to see how high it goes above 1.3. I guess it's going to need some more news or data to actually trigger this.
Try publishing this in the UK weekend papers: Traders bet BankofEngland will raise rates to 6.25% --highest since 1… https://t.co/GWXrTEAk4R(9 months ago)
Poor start to a slow market day as Ezone PMIs disappoint. Im still keeping an eye on the rare (-2%) USD-GOLD combo,… https://t.co/UyRzWsRbs7(9 months ago)
-5% YTD is not good, while -7% from the year highs can be tough. Gold traders have their eyes fixated on this for n… https://t.co/NV5UMKsfNo(9 months ago)
ما وراء هبوط الدولار مع الذهب و من منهما يتمكن الارتداد؟
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
https://t.co/Y7tD0RxCS2
@XM_COM (9 months ago)
Jobless claims > 300k before next FOMC meeting would be ideal for Fed to make up for any CPI upside surprise (9 months ago)
"Cook & Eat at Home" scheme may come next to defeat UK inflation... (9 months ago)
Earlier in the week gold selloff was attributed to smaller than exp China EASING. Metal is now holding v well despi… https://t.co/ZW9cmXTPWW(9 months ago)
Gold, Bitcoin, USD Combo
I mentioned last week on here on how and why both gold and USD are falling together. Since then, the trend accelerated alongside another detail.
View Hot-Chart..
This is why I no longer, or almost never, trade EUR/GBP.
I suppose that purely technical short-term moves may be an exception to this.
*[These numbers are in the annual reports for the International Bank of Settlements]
Fundamental Opinions getting in the way of Price Action: Yes, been there, done that, and it's sometimes not a pretty sight. Much more wary these days.
@Chloe: [February 1, 2011 17:33 GMT]: Yes, Ashraf can be a little cryptic sometimes. You have to try to fill in the gaps / read between the lines with your own knowledge, experience and research.
Thanks for the link.
Cheers,
M.
"eh montmorecy
what indigo meter?"
@Said:
I don't know why you say "indigo meter".
Catnip has referred to a strength meter several times, a currency strength meter obviously. I know there are several around, some free, some chargeable.
Anyway, I have now done some reading around the subject, and I see that it is used in a slightly more subtle way than I had imagined, and of course, in conjunction with other information.
Catnip didn't reply (or I didn't see his reply). Maybe he didn't see my question, or perhaps prefers not to talk about it. Fair enough.
I am glad I have missed the Fundamentals vs. Technicals arguments. I won't be joining them.
I would add though, that there is another factor, namely "Sentiment", which might be regarded as part of Fundamentals, not that it really matters what you call it, but it is important in trading I think. Ashraf is talking about this all the time, although he may not necessarily call it by that name every time.
I hope everyone had a good week, and has a good one next week.
I know of one free one (for MT4, not sure if there are versions for other S/W), but I am somewhat sceptical of the whole premise, to be honest.
I know that the principle is to buy strength and sell weakness, but this also seems to depend on the principle that the future will behave pretty much like the past. I suppose if you also add in fundamental reasons, it's ok, but I still have my doubts.
Good luck to all.
Hallelujah. Another comedy turn.