Price Action Trading - Strong vs. Weak

eurusd strong vs. weak

Trading Forex is in many aspects the same as trading any other instruments.  However, there is one crucial way in which trading Forex is completely different than trading other markets. When you are trading any other instrument, you are trading a single instrument based upon its individual strength or weakness.  However, in Forex you are trading two instruments or currencies which have their own individual strengths and weaknesses.  Thus, the equation is a little more complex but actually makes it easier to find trading opportunities. Why? Because when we are trading currencies, we simply are looking for the greatest polarity between the strongest and weakest currencies.  By trading a strong currency against a weak one, we greatly increase the chances …

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