Saturday, October 24, 2009

Trading Plan Which Instrument to short


When the US dollar gained strength overnight, its clear to short one of the currencies in the morning. But which one? Looking at the different instruments the YEN already traded near the low of yesterday, the Aussie Dollar almost, Canadian Dollar and Euro. So only the pound which was the strongest currency for the last few days has the best risk reward ratio.

Looking at the Dollar Index (DX) makes it also very clear when to enter, as only on certain times the pullback on an uptrend allows shorting other currencies.





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