I was asked a very good question following my bullish 8th January Kiwi blog, where I mentioned analysing 90 charts each week to come up with my ranking order each week for the 10 major currencies.  The question was...  surely you only need to look at 45 charts, not 90?  It's 10 x 9 / 2.  It was an important enough question to warrant a full explanation, not just to the person who raised the query, but also to a wider audience. As much as anything to give further insight as to why Tradermade are "up there with the best of them" when it comes to the success of our FX market calls.

The reason I look at each rate twice - quoted both ways - is simple - it's quality control.  First I look at the 9 USD rates, then the 9 EUR rates, then GBP, JPY, CHF and so on.  If we take EUR/CAD as an example, I first get to see it from an EUR perspective - viewing the 9 EUR rates side-by-side, all quoted with EUR on the left side.  Later, I get to see it from a CAD perspective - viewing the 9 CAD rates side-by-side, all quoted with CAD on the left side.

Occasionally, my view of a particular rate might not match.  For example, I might think EUR/CAD is bearish but CAD/EUR is neutral. How could that be?  Might it be that I have inadvertently been influenced by the other 8 EUR or CAD charts?  On these rare occasions I will then go back to both charts and take a fresh look, coming to a decision as to which it should be.

It took me back about 30 years to a time when Technical Analysis was less mainstream than it is today.  I attended a talk of stocks, where the speaker was bullish on EVERY SINGLE chart he displayed on the screen.  Even things which were clearly in a downtrend!  As funny as some found it at the time, it brought home to me the fact that when analysing charts, some people have a natural tendency to be either bullish or bearish. We've all heard the expression "glass half-full or glass half-empty?"

Some things you simply can't learn from reading a book, you have to learn from your own experiences and hopefully helps explain why I do things the way I do!  Technical Analysis is one of those professions where you get better the longer you do it.  Over 30 years at it and I'm still learning, and there are so many Technicians a lot older than me who are still at the top of their game!

Have you taken a look at Tradermade's FX Analysis service recently?  There have been major upgrades over recent months including our own in-house Economic Analysis to complement our award-winning Technical Analysis. For a live sample page of out service (the featured market is changed most days) please see http://www.tradermade.co.uk/InTA-free-sample where there are links to request your free 1 week trial (or alternatively go to) http://www.tradermade.co.uk/user/register?regcode=landing.research.trial