Due to the my recent interest in the USD i was moved to compare the relationship between the USD currency and the SNP500. The main reason is which pair should or could be a basis or somewhat indicator of a move on other pairs in the market. Many traders use the SNP500 for such purpose.
As shown in the chart regardless of the price.. we can see that for a position trader the relationship of this pair is proportional.
However for a small account or even a micro account, the difference in the proportionality of this two pair is too large and will definitely take you out on your trade.
My conclusion is that like the SNP500 the USDindex can be used as a indicator for trading other MAJOR pair and even other commodities.
Pls. Comment on what you think about this.
You can add me in twitter and write your observation of what you think is wrong.
As shown in the chart regardless of the price.. we can see that for a position trader the relationship of this pair is proportional.
However for a small account or even a micro account, the difference in the proportionality of this two pair is too large and will definitely take you out on your trade.
My conclusion is that like the SNP500 the USDindex can be used as a indicator for trading other MAJOR pair and even other commodities.
Pls. Comment on what you think about this.
You can add me in twitter and write your observation of what you think is wrong.