A TRADING ADVANTAGE; Trading Leaders and Laggers

When we hear traders talk about leaders and laggers, it is usually in the context of trading equities. However, did you know leaders and laggers also exist in the forex markets? There is a trading advantage to be had by observing the price action on a leading currency pair and trading the lagging pair based on this insight. In his latest article, Graeme Kennerley talks about such timing differences and shows you a real example he is stalking right now.

Recently, the CHF has experienced significant changes in its value. From the USDCHF chart below, we can see that a downtrend has formed, with lower highs and lower lows pushing to the downside. Graeme takes us through the other timeframes on USDCHF, and shows us a potential trading opportunity on a related pair - the AUDCHF, which has not quite moved yet. 

Continue reading Graeme's full article for the rest of these examples.

Regards,
The TWP Team