Choose your currency pair with care!

In this video we highlight the currency strength indicator and the currency array indicator for NinjaTrader, and the importance of understanding universal flow in the market. Here we see strong buying for the British pound and the euro which is reflected in the charts, but is sentiment for the two currencies universal across the complex, and this is where the currency array indicator steps in to help. In the ranking ladder to for the currency array we can see sentiment for the GBP is universal with strong buying in all the pairs.

For the euro this is not the case and highlighting the key point, which is to choose your currency pairs with care. Trading against the universal market sentiment is fine, as long as are aware that this is indeed the case. Most forex traders are not, and so assume the market is universally bullish or bearish on the currency which is often not the case at all!!