ichi360

One of the things Traders miss out is the ability to think out of the box. People have started assuming that if you just keep the 15 min chart of EURUSD or GBPUSD open on your monitor, you can grab some quick pips and get away quickly. Sure, you can … but only if this is what you’re here for. I’m sure there are people (like me) who take Trading quite seriously and they are either already full time traders or looking forward to become one …

As Cody said a couple of days back:

“Asher I beat this stuff to death at the other site and it seems that nobody really cares to look at the entire picture but only the chart in front of them because it requires WORK daily, lots of work to see and follow the entire picture but I don’t see how anyone can make money in the long haul if they don’t, sure short term they will have good days here and there and even a few months profits but over the long haul of years it just cant be done IMHO”

I couldnt agree more on this. There are very few who are actually looking at the Bigger picture every morning (or in fact much earlier than that) to make sense of the direction of the market is going to go today. Very few will have a chart open for SP500, NASDAQ, Nikkei and DAX … and even fewer care to look at the charts for Currency Index. Very few will discuss where the USD Index is right now and where its heading to.

And how many of us actually look at things like USDLFX ? or how many of us actually know about it ? or how many of us know that there is a LFX for each major currency available.

So what is LFX actually. To put it short, LFX is nothing but a combined value of a currency against the other major currencies, for example to calculate the USDLFX you need the following formula:

USDLFX = SQR ((USDCHF * USDJPY) / (GBPUSD * EURUSD))

Quite simple, nothing like a Rocket Science or anything but extremely valuable and something that can actually provide you a distinct advantage in the market. Looking at the value of GBPUSD is one thing but knowing their own strength in the market against others is another.

One example I can share with you is the profit of 1000+ pips that I’ve had since Monday by just trading anything that starts or ends with GBP (GBPCHF was a charm to scalp). By keeping an eye on GBPLFX chart, one could have easily predict the Weakness coming up for British Pound which clearly meant larger Breakouts (paradise for a Scalper, right ?) just waiting to happen.

My suggestion to all new-comers is to work hard and try organizing yourself, look at the bigger picture and look for the distinct advantage … here are the chart examples for you guys. Enjoy