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Forex Day Trading Strategies

I received this email/question:
I only trade the forex market and wondered if any of your trade setups can be used in the forex market?

This is a good question and so I thought I'd give my opinion here and allow anybody else to add their comments or correct me if I'm wrong.

In theory, all Market Profile strategies should work equally well in the forex market because Market Profile is based on the concept of value and responsive and initiative buying and selling. These concepts pervade all markets so there is no reason why they should not work equally well in the currency markets.

The PitBull setups that are currently being discussed (a pitbull setup and Pitbull setup II) mostly work off divergence of another related or semi-related instrument as opposed to classic divergence which works off an indicator.

When using divergence against another traded symbol or index you need to use something appropriate. If you are trading the Euro (EUR/USD) then you need to find a currency pair (like GBP/USD) that has a similar relationship to trade the divergence. (This is also known as Single Sided Arbitrage.)

If you are using classic divergence in forex (i.e. against an indicator that is calculated using the prices generated in the currency being traded) then in theory those strategies are just as valid.

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