October 11th, 2008
Spot Forex Trading Part 3: Parallel and Inverse Analysis
Very few spot forex traders conduct any form of parallel and
inverse analysis of the
and exotics to determine the best way to trade the forex on a day-to-day basis. Even though it would be nearly impossible to
trade the forex successfully not knowing where the overall strength and
weakness was in the spot forex across multiple pairs.
Lets look at some examples. Many people like to trade the
GBP/USD and they spend countless hours losing sleep waiting to trade this pair
even when no trend or parallel/inverse confirmation is available. Losses occur.
They could increase their odds dramatically by setting up some entry rules and
examples like the ones shown below.