Simultaneous trading opportunities can arise when we have two or more pairs that are strongly correlated with each other. The EURO CAD and the CAD CHF are two such pairs that are inversely correlated with each other, with similar patterns that allow you to benefit from signals and major movements in each. The Weekly Charts for both below illustrate this close co-movement as well as a recent 200-pip move for each that occurred when both broke their respective Counter Trend Lines on January 22, 2014.
WEEKLY CHART EURO CAD
WEEKLY CHART CAD CHF
As we can see below, that 200-Pip move took only a few days to be hit after the bullish (EURO CAD) and bearish (CAD CHF) signals broke their respective Counter Trend Lines. We now have a new set of Counter Trend Lines for both pairs and if similar breakouts take place in the next few days, strong gains with both are possible.
DAILY CHART EURO CAD
DAILY CHART CAD CHF
Traders can also enter using either the Daily or 4H Charts once these signals appear with greater confidence of a smoother ride to the targets with stronger Stop Losses.
WEEKLY CHART EURO CAD
WEEKLY CHART CAD CHF
As we can see below, that 200-Pip move took only a few days to be hit after the bullish (EURO CAD) and bearish (CAD CHF) signals broke their respective Counter Trend Lines. We now have a new set of Counter Trend Lines for both pairs and if similar breakouts take place in the next few days, strong gains with both are possible.
DAILY CHART EURO CAD
DAILY CHART CAD CHF
Traders can also enter using either the Daily or 4H Charts once these signals appear with greater confidence of a smoother ride to the targets with stronger Stop Losses.