Richard krivo forex cargo is my first post in a long time so please bear with me. We all like winning trades no doubt, and we spend most of our time looking for an ‘edge’ that would tilt the scales in our favor. When we trade currencies pairs we buy one and sell the other, we trade because we see something in our charts or because of a piece of news etc etcsomething that could help give us a higher chance of winning is if we pit a strong currency together with a weak currency and buy the strong currency while selling the weaker currency.
I came across an article by Mr Richard Krivo and he uses a simplistic albeit unique style to look for strength and weakness in currencies. I have slightly modified the method and find that it is extremely useful in helping me pick which currency pairs to trade. You’re on the right track but looking at it the wrong way. Problem is from this perspective it’s no different to saying “oh the EUR rallied the most yesterday, let’s look to buy” Too late I’m afraid, and more likely the reverse will happen in that the EUR would correct the most, as late money push it into over bought territory. Instead of thinking what is the strongest currency, what is the weakest currency. What is being sold, OR what is being bought.
I won’t elaborate any more on this though. But between this slight change in words is the answer you are looking for if I’m understanding you correctly. But global money flows are what it’s all about and I use a similar approach in certain markets, but not in the way you mentioned. Thanks for your input Cindy, always appreciated. I totally get what you are saying and agree with you when you say that we may have already missed the move, but I do not think we should trade solely on the strong weak analysis. I have been trying to get a feel for the global market flows but it is not as easy with the forex markets as it is with other markets, say equities due to the fact that we have too many participants and variables.