Question about forex pairs and candlesticks

Discussion in 'Newbie Questions' started by Mcdogg, Jul 6, 2016.

  1. Mcdogg

    Mcdogg Trader

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    Hi
    This is probably the most basic thing but i would to know what it means when the candlestick is bearish for the FX pairs CAD/JPY.
    If the candlesticks are going down, does that mean the canadian dollar is weakening and the Yen is strengthening ?
    Does the same principle apply to every other pairs? For USD/JPY, if the candlesticks are going up, it means that the USD is strengthening but the YEN is weakening?
    Please help me to understand this
    Thanks!
     
  2. Enivid

    Enivid Administrator Staff Member

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    Yes. If CAD/JPY is going down, it means that Canadian dollar is losing strength against the Japanese yen.

    Yes, you are completely correct.
     
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  3. Mcdogg

    Mcdogg Trader

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    Thank you for clarifying, helps tremendously!
     
  4. Jason Rogers

    Jason Rogers Master Trader

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    To add to what Enivid has already told you, it might help to look at an example with real numbers.

    At the time of this post, the CAD/JPY rate is about 79.48

    That means 1 Canadian Dollar is worth 79.48 Japanese Yen.

    Suppose that rate fell to 79.00

    That would mean 1 Canadian Dollar would be worth only 79.00 Japanese Yen.

    From this example, you can see that a falling CAD/JPY rate means the Canadian Dollar is falling in value relative to the Japanese Yen. By contrast, a rising CAD/JPY rate would mean the Canadian Dollar is rising in value relative to the Japanese Yen.
     
    Last edited by a moderator: Jul 27, 2016
    Mcdogg likes this.
  5. Alexfx79

    Alexfx79 Active Trader

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    In general you trade a certain instrument (e.g. CADJPY), so you don't need to find what currency is streanthing and which is weakening. It's only about your interest, but it's not essencial for trading.
     
  6. radaway

    radaway Trader

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    as Enivid showed...:) , here's a rule of the thumb that I practice

    if right hand side (rhs) is 'strong', the candles will fall down ( we got signal to sell )
    if right hand side (rhs) is 'weak', the candles will rise up ( we got signal to buy)

    my 2 cents :)
     
  7. Daniel Richards

    Daniel Richards Trader

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    XXX/YYY is the general format by which currency pairs are denoted, where XXX and YYY both refer to three-letter code of international currencies. If you have US dollars (USD) and want to buy euros (EUR), in the jargon of Forex market it is said to you buy EUR / USD. That means USD is getting strong, that's why you are "buying". So that you need to buy with a low price and later you can sell it on high price. You got that, right?
     
  8. Winjak

    Winjak Active Trader

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    I agree with this point of view. It doesn't matter in fact. You buy or sell A PAIR :)
     
  9. f4forex

    f4forex Active Trader

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    Maybe other traders have their own opinions like some trade those which have more volatility, others including me used to trade EURUSD as it is a good pair for earning good ROI.
     
  10. Robian

    Robian Active Trader

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    I started with EURUSD and majors but then appeared that commodity currencies are okay for ROI too. As for me, their movement is easy to predict
     

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