Know currency strength from both fundamental and technical perspectives ~ From Sky Fox's Newsletter ~
April 19, 2017
From Sky Fox Bitcoin Newsletter
Sky Fox School
Currency Strength Relationships?
We will publish it in a special issue.
Originally, it would be explained with percent charts. Details will be provided later.
The 4th Sky Fox School: Three pages on the Counter Line
In the section “Turning Points in Market Changes and the Ensemble Drama,” I briefly stated that there are power dynamics that vary by market.
Furthermore, there are power relationships within individual instruments, of course.
The euro/dollar being the king of forex is due to its overwhelming trading volume.
Also, recently the importance of USD/JPY has risen, and market perception is changing.
Liquidity increases with topics of the times and the market.
On April 18, 2017, UK Prime Minister Theresa May announced a snap election to decide on Brexit, and the election would be held on June 8.
Therefore, the power relationships among the EU, the pound, and the dollar have changed.
Originally, data would be analyzed from measures like rate of change and volatility, but here I will simply explain a method by comparing charts.
1) Look at EUR/USD: the euro is strong and the dollar is weak.
Dollar < Euro
2) Look at EUR/GBP
Euro weak, Pound strong
Euro < Pound
3) Look at GBP/USD
Dollar weak, Pound strongDollar < Pound
Summarizing items 1-2,
1) Dollar < Euro 2) Euro < Pound 3) Dollar < PoundThe key is to align the directions of the inequality signs.
1) Dollar < Euro 2) Euro < Pound Remove one of the overlapping Euros and combine,
Dollar < Euro < Poundbecomes.
3) Verify the condition Dollar < Pound; if they are the same, it is complete.
From this information,The Pound is strongest, with Euro and Dollar following, determining the currency strength order.
What can be gleaned from this is that as the gap in strength grows, volatility increases, andthis indicates that GBP/USD leads the market.
Thus, by separating the three instruments, is it Dollar-strength or Euro-strength?
By grasping the currency strength relationships in the market, you gain the power to select the instruments.
Please develop such an eye for assets and put it to use in your trading.
What is the Sky Fox Newsletter?
Bitcoin, International Financial Markets
【Regular Delivery Contents】
Monthly report: ideas for position trading, medium-long term analysis
Beginning of month: International financial markets, notable assets, long-term algorithm forecasts
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Monday: notable assets, short-term algorithm forecasts
Tuesday: International financial market analysis
Wednesday or Thursday, or focused dispatch at a chosen moment, analysis of notable assets planned
【Delivery Frequency】
Market-dependent. We will provide timing so it can be imagined during key moments and deliver scenarios to allow proactive decisions, such as observations. The first week of the month, normal weekly reports are paused. To be readable even for beginners, we will write succinctly with key points so that notes can be sent to your investment diary. Even during busy times, we will keep the text short enough to read in 2-3 minutes.
The first week of the month, regular weekly reports are paused.
To be readable even for beginners, we will write succinctly with key points so that notes can be delivered to your investment diary.
Even during busy times, the text will be short enough to read in 2-3 minutes.
【臨時配信内容】
For beginners and intermediate learners, we will provide advice for the trading diary to help close gaps in skills. We'll provide explanations in accessible language.
Bitcoin, dollar, and index analysis using our own original charts. Optimized strategies via genetic algorithms,
Percent charts, seasonal charts, change days, and various other content.
At this moment, we deliver only the information necessary to respond to this market.
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As a trader, judgments with multiple viewpoints at close range. As a technical analyst, grasping the whole picture from above. The algorithm's rapid response to changes in the surrounding environment. A fusion analysis that blends the three perspectives into one.
Moreover, we will reverse-import international finance analysis methods learned overseas, Germany's algorithm, Ichimoku V2 Renko candles, and Japan's analysis methods; Canada’s K-line analysis, Egypt’s Fibonacci analysis, NY-style BOX analysis, UK's Ichimoku, weaving together the latest methods from around the world to create fusion analysis. We deliver market reports unique to Sky Fox.
