A general rule in the world of Forex trading
If the price rises against the pound or the euro it means their rise and the decline of the dollar.
If the pound or the euro fell, it would mean a fall and a dollar rally.
And vice versa for the yen and the franc
If the price rises against the yen or the franc, that means their decline and the dollar’s rise.
However, if the yen or the franc fell against the dollar, this would mean a rise in the dollar.
The reason is that the base currency is the pound and the euro against the dollar, either against the yen or the franc, the base currency is the dollar.
The price as you know is the amount required for the payment of the second currency to get one unit of the base currency.
As we mentioned, it is important to know whether the currency has declined or risen because if you do not realize it well you may buy at the time you want to sell it and vice versa !!.
However, if you find it difficult to understand the difference, do not worry.
With a little practice, things will become very easy for you.
Just save the previous rule, and it will help you remember the following chart.
For direct currencies
As you can see in the figure, the rise in the chart in the direct currencies means that the price of these currencies rises against the dollar and that the dollar is falling against them.
So we buy the direct currency if it is going up in the chart, and we sell it if it goes down in the chart.
For indirect currencies
The rise in the indirect currency chart means that the price of these currencies is falling against the dollar and that the dollar is rising against it.
So we sell the Indirect Currency if it is going up in the chart and buy it if it is going down in the chart.
Reminding you of previous planners will help you a lot in determining the difference between direct and indirect currencies.