How to search same Footing?
When we make a cross currency pair, we have to check a lot of things. We have to compare our pairs. These pairs are based on weak and strong currencies. The dealers have to face many difficulties related to these currencies. One of the major problems is that the currencies present in a pair have different types of structures. It is very important to make the differences in the currencies equal to each other. This thing can be done by means of focusing.
Currencies are mostly merged with one another. It is not very difficult to take out the two currencies from a pair. The currencies in the pair are of different trends. Most probably, one currency has a low rate and the other had the highest rate. Mostly, the pair of currencies have dollar US in them.
Making the frame of Time:
The subsequent step is making clear which time period is going to be checked. Mostly, the dealers use a time frame of short time trader. In this time frame, dealers get the position on 1-hour chart whereas 4-hour chart is used for the analysis of trends.
Analysis based on multiple time frames
The dealers have a position on the 1 hour chart. But the dealers like to get a chart having more hours for them. So, they switch to a chart having 4 hours for them.
What is the Market Scope?
The trader keeps an eye on the USDAUD cross currency. At a specific time, this currency made low rate in the market. But after some time, the rate of the currency pair gets increased. The high or low rate of currency makes an overview of the position of the currency pair on the chart. Giving a specific color to a currency can show the position. The upward position can be shown by upward line as well as blue color. When the currency shows high rate, its value goes up and at the time the rate of a currency is low, its value goes down.
Formed through Market scope
First of all, we have to make a table. We have to put the currencies according to their upward and downward rates. After that we have to analyze which is the weakest as well as strongest currency. After getting those currencies, we have to compare them with our general currency. The general currency is the dollar. If the currencies, which are stronger, have dollar US among them than the weak point of dollar will give strength to other currencies. On the other hand, if the weak currencies have dollar then their loss will be equal to the value of the dollar.
If NZD is the strongest kind of currency as compare to the dollar then the merger NZDUSD will get more value equal to the dollar.
We have to check the currencies, which are going to show maximum power as well as most feebleness. The observed data will be combined. The combined data will be preserved according to its type like swing trading, long term, or short term.