This is a good question, jmo but ok so we are looking at the composite chart and see it is beginning to show signs of completing a retracement and starting to turn back to the trend , to me the next logical step would be to check the charts of the pairs to see where they are.I’m not sure how that part will show on a single chart. What happen to that single chart when only 1 or 2 pairs out of (let’s say) 8 pairs suddenly go crazy ? This happened a few times in the last 2 weeks. Looking at a single chart, are we going to know that the action is created by a minority of pairs ?.
The composite chart might function like a big picture monitor that says Hey time to check for an entry guy,
So Monday morning prior to London open I put together a probable basket, so now I have up two composite charts, one for buys and one for sells, this is instead of 6 or 10 or however many charts of each pair in the basket. All it is , is a condensed way of looking at what the group is doing, throw in an alert function on the composite chart to get your attention at opportune times would be good as well. If it is just 1 or 2 pair going wild all it will take is 2 minutes to scan all the pair charts to see this .
I would not simply blindly take the signal from the composite chart, I have never blindly taken positions from the SlopeValue numbers, I always look at the chart , it just makes sense to do that.
Another point Gary touched on was then after you are in a trade the chart can act as a profit curve monitor. It makes sense that as the price curve goes on this chart so goes your profit/loss. What an easy way to monitor that and when the chart begins to stall out or reverse you might want to look at individual pair charts and make another decision as to your position..
I see some positive benefits are possible with this scenario. Maybe if one of the guys comes up with a better implementation of the composite chart so as to do away with the offline stuff, because lets face it that is quite cumbersome, we can give it a close look .
This is really not changing anything about how the basket is traded, it is simply massaging how some of the information is displayed to us and imo might allow us to make more timely decisions .
