Since i don't know the name of the system or theory (if exist) i can't do searching..... please tell me if there is.
Start with example:
today usd/jpy = 118,90 = 11.890 pip to zero
in usd base currency 1 pip in micro lot is about 0,85 cent. so 11.890 pip = 10.106,5 cent or $ 101,07
so with $ 102 we can have 1 micro lot open without any worry ( isn't it? )
in the same condition if usd/jpy goes to 78,00 = 7800 pip = $66.30
we can put 1 micro lot for $67 of equity without "worry"
we see that if currency pair is priced near zero, the risk of buying is lessen...( this is the thing that i looking for....(and there is no "absolut resistance" in any forex dictionary))
here is some example of near zero currency pair(it should be counted by pip)
Aud/Usd : 0.8323
Nzd/Usd : 0.7440
Eur/Gbp : 0.6777
Chf/Jpy : 98.12
Aud/Cad : 0.9355
Aud/Jpy : 98.96
Nzd/Jpy : 88.46
too bad this kind of currency pair has lower swap rates than usd/jpy...
1 micro pip of usd-jpy will generate about $0.013 per day= $4.75 per year(365days)= 559 pip per year
($4.75 is about 4.65% from $102, it will take 102/4.75 = 21,5 years for the swap to catch up with the price.)
or , if you can trade 1 micro lot for 10 pip a day for 261 (365-2*52)= 2610 pip = $22.19
($22.19 is about 21.75% from $102)
so anually we can hope a profit return 4.65% - 21.75% with simple way of trading:
put The position, should it goes against you , let it be , put another one, ( just count the equity ). take profit in any place you want (oh,, i do mention 10 pip a day...).
within 21 years, the crucial thing in your way will be interest rate and a question " will my broker last that long?"
Start with example:
today usd/jpy = 118,90 = 11.890 pip to zero
in usd base currency 1 pip in micro lot is about 0,85 cent. so 11.890 pip = 10.106,5 cent or $ 101,07
so with $ 102 we can have 1 micro lot open without any worry ( isn't it? )
in the same condition if usd/jpy goes to 78,00 = 7800 pip = $66.30
we can put 1 micro lot for $67 of equity without "worry"
we see that if currency pair is priced near zero, the risk of buying is lessen...( this is the thing that i looking for....(and there is no "absolut resistance" in any forex dictionary))
here is some example of near zero currency pair(it should be counted by pip)
Aud/Usd : 0.8323
Nzd/Usd : 0.7440
Eur/Gbp : 0.6777
Chf/Jpy : 98.12
Aud/Cad : 0.9355
Aud/Jpy : 98.96
Nzd/Jpy : 88.46
too bad this kind of currency pair has lower swap rates than usd/jpy...
1 micro pip of usd-jpy will generate about $0.013 per day= $4.75 per year(365days)= 559 pip per year
($4.75 is about 4.65% from $102, it will take 102/4.75 = 21,5 years for the swap to catch up with the price.)
or , if you can trade 1 micro lot for 10 pip a day for 261 (365-2*52)= 2610 pip = $22.19
($22.19 is about 21.75% from $102)
so anually we can hope a profit return 4.65% - 21.75% with simple way of trading:
put The position, should it goes against you , let it be , put another one, ( just count the equity ). take profit in any place you want (oh,, i do mention 10 pip a day...).
within 21 years, the crucial thing in your way will be interest rate and a question " will my broker last that long?"