Confirming signals for entering trades...

[welshsteven]

Hey everyone, i'm relatively new to trading and up untill recently I have only been building up my skill and knolwedge of the cable market, but now i've started looking at other markets and have come into a little problem.

For instance, when entering a trade on the cable i look for an inverse movement on the usd/chf and conforming movent on the eur/usd as some of my confirming signals to enter a trade, now these seem quite simple entry rules so i do combine them with other indicators. but... when trading on other markets, i.e. usd/jpy - aus/usd - usd/cad etc. what other markets can I use as confirming movement signals, if any. I use the MACD for confirming strength in one direction and I also use RSI for oversold or overbought territory, but this doesnt feel enough, do I need anything else?

Hope someone can help in some way.

Cheers all

Steve

 

[FXCode]

You can sometimes see correlative patterns in two pairs (EURUSD and USDCHF for example), which can be used to confirmation.

If you see a Channel in EURUSD and the opposite channel in USDCHF, but the EURUSD already broke out and the USDCHF is struggling with support\resistance, you may want to wait until the USDCHF breaks out too. Confirming with other pairs (correlative) is a great way of amplifying your winning probability.

 

[welshsteven]

You can sometimes see correlative patterns in two pairs (EURUSD and USDCHF for example), which can be used to confirmation.

If you see a Channel in EURUSD and the opposite channel in USDCHF, but the EURUSD already broke out and the USDCHF is struggling with support\resistance, you may want to wait until the USDCHF breaks out too. Confirming with other pairs (correlative) is a great way of amplifying your winning probability.

yes i currently use those two pairs and the gbp/usd together, but i'm looking for another set of correlative pairs. Looking at the market, a few are moving conversly or very similarly, but i was wondering if there are specific pairs which arfe moving inversly on a regular basis and can be used as the the "apmlifying" signal for another pair... if that makes sense... haha.

cheers

steve

 

[Rhody Trader]

You have to look at what you're trading. Are you trading a USD pair? Then you can look to other USD pairs for confirmation of a general move. Are you trading a GBP pair? Then look to other GBP pairs. Etc.

 

[welshsteven]

You have to look at what you're trading. Are you trading a USD pair? Then you can look to other USD pairs for confirmation of a general move. Are you trading a GBP pair? Then look to other GBP pairs. Etc.

well i was wondering if it was that simple, as thats the way i can see the markets move, a big move makes it more obvious, on almost all of the pairs i'm trading. Many thanks, i'll keep and eye out for the best pairs that mirror each other and also keep multiple charts open to attempt to correspond.

Cheers