what time frame do you use to determine the base value...or fair value if you will of a pair... do you use daily or weekly charts to arrive at a value... thanks in advance...
I do better just playing for the intraday range so I look at 5 min charts. It may just be me, but when I put on a pair that is near a 6 month hi/lo, one that I would like to hold for a few days/weeks, I tend to get clobbered on those trades because I was taught to "add another layer" if it goes against you. If you don't plan these out you end up taking a big loss when they don't work out. By focusing on a shorter time frame, I am more likely to scratch a trade if it doesn't work right away. Which suits me better. I have seen a lot of people blow up trading pairs. Sometimes you can have it on the "right" way (read fundamentals) and still get clobbered.