Trading Currency Pair Price Spreads

Dear friends, long time followers and the many recent traders to the site

Merry Christmas and God’s love, grace and mercies to a new healthy, happy and prosperous new year.

Idleness to postings is the result of a 70 -80 page book on the wild Congressional election of 1870 in South Carolina and scheduled to publish sometime in January.

The book is derived from 6 months of research and from original research as the papers and testimony from both candidates. Original research from Congress, S.C archives, Congressional Globe, Annals of Congress and 1000’s upon 1000’s of newspaper articles covering 10 ish years.

GBP/USD closed 1.3530 and USD/CAD 1.2841 or 689 pips. This spread is far to wide. As was sent to FX Street and never published, we’ve seen rare days of 1100 pip spreads. Normal is 300 to 500 then 6 to 8 requires warning and above 800 then free trades and free money exists.

Last Sunday open, the spread was 700 ish pips and on Monday, GBP fell 300 pips to 1.3100’s and USD/CAD rose about 300 to high 1.2900’s from low 1.2700’s. Once the spread regained a normal 200 and 300 pips then the spread widened again to current 700 pips.

The message to trading spreads for GBP/USD and USD/CAD is either GBP is overbought or oversold or USD/CAD is overbought or oversold. Today, GBP/USD is overbought and USD/CAD is oversold. Spreads expand and contract, expand and contract and all based on the price and nothing else. GBP and CAD is the best currencies to trade spreads due to its perfect opposite price relationship.

Another way to view and trade spreads is GBP/CHF is derived from GBP/USD and CAD/CHF. For CAD/CHF is the opposite pair to USD/CAD and opposite to GBP/CHF.

Note how EUR/NZD and GBP/NZD always maintains an 1800 pip spread. Any trading day and anytime of any trading day, the spread maintains 1800 pips. GBP/NZD closed 1.9012 and EUR/NZD 1.7114 or 1898 pip spread. The spread is off by 98 pips and a free 98 pip trade. Either GBP/NZD must drop or EUR/NZD must rise. I have EUR/NZD rise this week.

EUR/NZD and GBP/CAD are opposite pairs. GBP/CAD closed at 1.7376 and EUR/NZD 1.7114 or 262 pips and at extremes to spreads. GBP/CAD lower this week will close the gap.

Always note price crossovers for free trades. If EUR/NZD rises and GBP/CAD drops then the dividing line between both is 1.7245. This is the point of either a crossover will occur then expansion or prices will again contract.

GBP/USD Vs USD/CAD dividing line is 1.3185 and note GBP/USD last week hit exactly at 1.3185. A break above or below 1.3185 is required for GBP/USD or USD/CAD to crossover and see price expansion. But 1.3185 is the point of contraction as was seen last week.

GBP/NZD and EUR/NZD won’t ever see crossovers to prices because the spread of prices is far to wide. GBP/AUD and EUR/AUD won’t ever trade crossovers because the spread is far to wide.

EURUSD Vs Current NZDCHF as the bottom most currency price.

Current NZDCHF 0.6313 V EURUSD 1.2178

Take 1.2178 – 0.6313 = 0.5865

0.5865 Divide by 2 = 0.2932

NZDCHF 0.6313 + 0.2932 = NZDCAD 0.9245

NZDCAD Close 0.9168 V target 0.9245

Watch NZD/CAD 0.9245 as a contraction point and price drops.

NZDJPY Close 73.71, Big High/ Low Break point 72.07 or 164 pips.

From 0.7371 to move the decimal point, Big High/ Low Break point becomes 67.05 or 667 pips from 73.71 or 667 pips from 0.7371 to 0.6705.

No difference to the Distribution, scales remain the exact same. The only question is how far one wishes to view the price.


NZDJPY
0.7371

EURNZD 0.7114

NZDUSD 0.7111

NZDCHF 0.6313

NZDJPY 0.7371 – 0.6313 = 0.6842 or = NZD/USD support and Target. NZD/USD price will expand or contract.

To Continue

EURNZD 0.7114 -0.6313 = 06713

NZDUSD 0.7111 – NZD/CHF = 0.6313 = 0.6712 NZD/USD support.

NZD/USD is well supported at 0.6842 and 0.6712.

The Trader Mastered exact Science of Trading when

1. Dump Charts

2. Calculate trades under 2 minutes

3. Know exact price location every Second

4. Target Most Vital,

5. Entry, secondary

6. Understand & repair Missed entry

7. Targets Hit

8. No stops

Contact for trades brian@btwomey.com

Brian Twomey

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