Trading The Ratio Of The RSI by Russell Rhoads
ARTICLE SYNOPSIS ...Trading The Ratio Of The Rsi by Russell Rhoads
Here's a method for trading the spread between the Swiss franc and the Deutschemark. The technique involves using the ratio of the relative strength index (RSI) of each currency to identify trading points.
The correlation between the Deutschemark and the Swiss franc, considering the strong fundamental economic ties between the two countries due to their close geographic proximity, always seemed to be obvious to me. So when I discovered that a floor trader was using technical signals from the Deutschemark to trade the franc, it occurred to me th...