{"product_id":"stcov265fofo","title":"Stocks \u0026 Commodities V. 26:5 (54-55): Forex Focus: Allied Currencies by Alexander Sabodin","description":"Forex Focus: Allied Currencies by Alexander Sabodin\u003cbr\u003e\u003cbr\u003eWhen trading, who or what can be\nyour ally?\u003cbr\u003e\u003cbr\u003eWorking in the financial markets\nas a trader can be fascinating, considering it gives you the opportunity\nto earn money and do so independently.\nYou can trade from anywhere in the world\nwith the help of a computer and the\nInternet. But any medal has its reverse.\nSuch types of jobs come with their fair\nshare of risks. First of all, there is the\ndanger of losing money. Second, the responsibility\nof making the buying and\nselling decisions is entirely on your shoulders;\nyou cant depend on anybody else.\nYou are essentially on the battlefield alone\nand fighting your enemies alone.\u003cbr\u003e\u003cbr\u003eIn any battle, you should have allies\nthat help you make the right decisions and keep you away\nfrom making the wrong ones, or at least you hope that is the\ncase. When trading, who or what can be your ally? Believe\nit or not, a tradable that is correlated with another in terms of\nprice movement can be.\u003cbr\u003e\u003cbr\u003eALLY CURRENCIES\u003cbr\u003e\u003cbr\u003eIn the foreign exchange market, the USD\/CHF currency pair\nis an ally to the EUR\/USD pair. The economics of Switzerland\nare closely connected with the economics of the countries of\nthe European zone, which is not surprising given that Switzerland\nis located in the central part of Europe. In addition,\nif you look at the charts of these currencies with respect to the\nUS dollar, they look like mirror-image twins.\u003cbr\u003e\u003cbr\u003eOur tactics are relatively simple. If these two currency\npairs move synchronously and give confirming signals, we\nconsider it a strong signal and open a position. If we get a\nsignal from one currency pair and the second pair doesnt\nprovide a corresponding signal, we stay out of the market\nuntil we get a confirmation. Thats all there is to this system.\u003cbr\u003e\u003cbr\u003eHEAD \u0026amp; SHOULDERS\u003cbr\u003e\u003cbr\u003eLets consider two neckline breakthrough signals on the EUR\/\nUSD (Figure 1A) and USD\/CHF (Figure 1B). The first breakthrough\nis fake; it is marked by the number 1. In a situation\nlike this you could give into emotions and start selling EUR\/\nUSD (pay attention to the long pin), but the USD\/CHF told us\na different story. These conflicting signals kept us out of\nplacing a trade. In a few days, the USD\/CHF breaks the\nneckline. This is marked by the number 2. At this point, I\ndont have complete confidence to open a position in the EUR\/\nUSD since it lags behind the USD\/CHF. If on the next trading\nday the movement continues in the same direction, then I\nwould consider opening a position.","brand":"store-traders-com","offers":[{"title":"Default Title","offer_id":52134104596849,"sku":"\\V26\\C05\\090SABO.PDF","price":2.95,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0900\/3843\/6209\/files\/unnamed_95d07925-d502-4c86-b3d2-9731475b3567.jpg?v=1739666805","url":"https:\/\/shop.traders.com\/products\/stcov265fofo","provider":"Stocks \u0026 Commodities","version":"1.0","type":"link"}