2023/07/27 Currency Pair Selection & Trade
Today's trading currency pair is the “ EUR/USD ”.
Please look at the strength values for each currency pair below!
Both M5 and H1 show the strongest currency pair as “ GBP/USD ”.
However, I chose “ EUR/USD ”, which has the second largest value on M5.
Pound-related moves are volatile and hard to capture, so I thought.
Today we will day-trade, and since it’s Thursday, I chose this currency pair.
Double Trend Follow & Currency Pair Strength Indicator.
What is happening with EUR/USD, you ask…
H1
M5
Taking a closer look…
M5
Above, I showed the 15-minute and 5-minute charts,
from the occurrence of a notable signal, the blue dots rise in a nice curve.
The further the price baths away from the candlesticks, the longer the trend lasts.
The RSIOMA indicator on the 1-hour chart also, shows the green line widening away from the white line, rising.
The greater the space between these lines, the stronger the trend.
The 5-minute chart is also rising vigorously.
The histogram is also blue with strong reactions continuing.
On the other hand, how did GBP/USD look…
H1
Looking at the 1-hour chart, it shows a strong, upward trend with a sharp rise.
However, on the other hand the RSIOMA lines, the white and green lines, are getting close to each other.
This suggests the trend momentum is fading and a sideways (range) market may be ahead.
That’s why I chose EUR/USD.
The RSIOMA lines on the EUR/USD 1-hour chart do not show imminent convergence, and are widely spaced, indicating room to move for expansion.
The two features of these two indicators are, even beginners can understand them roughly, but when used properly to judge, you can reliably pick currency pairs with large trends.
In fact, since I started trading with this indicator, I have hardly lost.
However, as I wrote above, it’s not about analyzing and picking the highest temporary value, but using the sub-chart indicators as reference to judge, which makes it easier to capture a big move.
※ As for currency pair values, if a value of 0 occurs for some currency pair, or if the largest value drops below 100, it doesn’t show a clear trend, so please judge it as a range market.
In that case, trade scalping USD/JPY while watching the signs.
USD/JPY has a narrow spread, and due to currency pair characteristics, it doesn’t swing widely, so it is recommended.
EUR/USD does not swing widely either, so I choose EUR/USD again this time and was able to take a large gain.
Knowing the characteristics of currency pairs makes trading much easier.
Double Trend Follow & Currency Pair Strength Indicator.
Please give it a try.
