System I - Correlation
The whole point behind your system is to understand its correlation.
Theory
Two primary pairs;
- (A/X).
- (B/X).
X is often enough your USD as secondary currency within your pair.
This automatically creates your first secondary pair
;- (A/B)
This cross will help you identify which one of your primary currency is stronger... which helps identifyleading and following scenarios within your primary pairs.
Then often enough you'll have;
- (A/Y).
- (B/Y).
Where Y will be another offbeat pair, usually within the safe-haven range.
Commodities, CHF, JPY.
Lastly you will have the index which, either currency basket related, or tech stock related.