I recommend having the following four currency pair charts displayed. EUR/USD, USD/JPY, EUR/JFY, and AUD/USD. There are vary specific reasons for this selection.
The first reason is that you have a major currency from all the major markets. JPY from the Asian market, EUR from the European market, and USD from the N. American market. Notice that you have all the combinations of these three currency pairs on three of your charts. This is good because you now have "Relativity" (as I like to think of it).
What is "Relativity"? (Not Einstein's theory of Relativity, but the Borowski version) Let me illustrate for you. Let's say that the markets are consolidated (on all three pairs), often you'll see that two of your three charts will start to begin moving, while the third chart appears to be relatively unaffected. You now know which currency is the driving force behind the movement. It is the currency that is common on both charts that moved, but is absent on the third. For example, if USD/JPY & EUR/JPY were the two that moved then you know that the Asians were doing something and the JPY was the force behind the movement as the value of the JPY was somehow being affected.
Why do I often have the AUD/USD? Simply because it is one of my personal preferences, plus the fact that it often moves during the evening hours (from my time) when usually the other pairs are quieter. It is also a pair that I watch to contrast against the EUR/USD as it closely mimics EUR USD, but it is just another filter for me to pay attention to the affects of USD without the influence of EUR.
There is another significant reason for using such combinations of charts. Often times you'll notice that the other charts containing a common currency may shoot or just simply start moving, and THEN a similar action takes place on another chart a few moments later. By seeing what the other charts are doing it can give you a "heads up" warning of what you might potentially see on another chart.
It is also important to keep in mind that the "relative action" will happen that both charts move in the same direction of the currency that is moving it is on the same side of the "forward slash" ( / ). In the case of USD/JPY & EUR/JPY both charts will move either up or down if it is the JPY that is moving the market. In the case of EUR/USD & USD/JPY, if the USD is moving the market then the charts will move in opposite directions simply because the "USD" is on opposite sides of the "forward slash" (/).
Allow me to go off on a slight tangent for a moment to share something I've been thinking about for a VERY long time but still haven't yet figured out how to profit from. I am sharing this here simply because it is somewhat related to the above topic. If someone who reads this can figure out a working theory on how to make this work then please contact me to share your thoughts. ? I have a theory that I call the "Market Efficiency Theory". In a triangle involving three currencies (as described above), when the value of one currency pair changes then the value of one of the other two, or both currency pairs MUST be affected as well in order to maintain an equilibrium of value throughout the currency triangle. If you were to trade one currency for the second currency, then trade that second currency for the third currency, and then trade that third currency back to the original first currency there should theoretically be no gain or loss of value (ignoring spreads which would of course result in a net loss). I believe that if you were to analyze the market between three currencies that there must be periods of time (such as when there is a strong market movement) when the equilibrium is out of sync. Sooner or later it must be corrected, and due to the correction there might be a way to squeeze out some profits. I think I've explained the concept here well enough for you to understand. If you are a clever individual and are up to a challenge then play around with this idea. If you should happen to figure out how this idea might work in real life to profit from it then please contact technical support to relay a message to me (please understand that I might be slow in contacting you back). See, I come up with tons of concepts, but not all of them have yet been refined.
Back to the topic of "Relativity".
One more tip to provide - sometimes while in a trade you may see another chart move in a direction sharply that implies a contrary direction for the trade you are currently in. Sometimes when this happens you can be forewarned of a potential reversal affecting you so you can have at least a few extra seconds to evaluate your contingency plan. Thus multiple chart views isn't just to help you to enter trades, but can also help you time your exits too.
So there you have it. You now have a couple of good reasons for having multiple charts displayed, not because you plan to trade all of them (but go with the opportunities you find), but rather because being able to see multiple currency pairs shows you an added dimension of market activity that may help you in making trading decisions. Source: rapid forex
