Posted by: joetradingplace | October 3, 2012

Buy Strength and sell weakness

This is a very simple concept I use, but its very effective….it is what it says, buy strength and sell weakness. Example: We have two pairs, Kiwi and Aussie, they usually move in the same direction, but there are times when they are not moving in the same direction. Lets say Nzdusd is going up and audusd is going down….this shows that its not dollar weakness, but rather aud weakness or nzd strength…so if we get good news on the dollar, we are better off selling audusd than nzdusd…that means we are selling weakness which is the aud…

If we get bad news on the dollar…we are better off buying nzadusd…coz we are buying strength…

Not sure if I explained it well…but this is something I use and it works very well for me.

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