Which currency are you trading, USD, JPY, GBP, EUR or AUD? And do you currently have a position? Have you ever wondered if the currency you currently have a position in is strong or weak? If you think so, what you should check is to look at the charts of other related currency pairs so that you can relatively know the strength relationship of the currency pair you are trading. Since this concept can be applied to virtual currencies, it is widely accepted by traders.
View charts for other currency pairs
Let’s say you are trading USD / JPY. At this time, suppose you are wondering how strong or weak the Japanese Yen JPY is currently. In that case, take a look at EUR / JPY, GBP / JPY, AUD / JPY, etc. If all charts were buying JPY, JPY may currently be the strongest of the major currencies. You don’t have to dare to trade. All you have to do is look at it. Consider whether to buy or sell after considering the current power relationship. Basically, EUR / JPY, GBP / JPY, AUD / JPY, etc. tend to move in the same way, but be aware that they often move in the opposite direction.
When only one movement is different
Let’s say you are trading USD / JPY. At this time, suppose you are wondering how strong or weak the US dollar USD is now. In that case, take a look at EUR / USD, GBP / USD, AUD / USD, etc. Of these, only GBP / USD is sold, and if USD is bought on other charts, you need to pay attention to GBP. If you check GBP / JPY, EUR / GBP, GBP / AUD etc. and all GBP is strong, it is likely that GBP is currently strong among all currencies.
Can also be applied to virtual currencies
This idea is the same for virtual currencies. If you’re curious about BTC, take a look at the BTC pairs. You can check the current power relationship by looking through it. If you are curious about the currency pair you are currently trading, you can grasp the strength relationship by taking this confirmation method.
Each currency has its own characteristics
Each currency pair has its own characteristics. For example, in the case of USD, the political background and all economic indicators are very strongly reflected in the market. JPY is often bought when some kind of illness, war, economic sanctions, etc. occur. With AUD and CAD, the strength will fluctuate strongly depending on the crude oil and resource prices. If it is CHF, it will be affected by the gold market. Please note that the market price fluctuates all the time and the factors that fluctuate depending on the currency are different.