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walterw

Introduction to Inter-Currency Analysis

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Actually, if you look closely at a totem pole, there is usually a butt-ugly face on it, right near the bottom. That's me ;)

 

 

:rofl:... I fear you're too modest. That'd position me... let's see... underground on the totem pole. ;)

 

Walterw... didn't mean to spoil the party... just trying to interject some realism.

 

Fire away... show us your evidence.

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:rofl:... I fear you're too modest. That'd position me... let's see... underground on the totem pole. ;)

 

Walterw... didn't mean to spoil the party... just trying to interject some realism.

 

Fire away... show us your evidence.

 

good good... the chimp will fire some bananas ¡¡ jejeje... I will start a thread tomorrow with one of the setups I beleive its the easiest to trade this...

 

In terms of realism the chimp will try to keep things as real as posible.... but please allow him to show how this simple stuff works, even wih this "non reliable data" jejeje cheers Walter.

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When I mentioned vwaps on forex seems like its not reliable data, well the fact is some times, small samples of proxy data can be sometimes even more powerfull than true factic data, this happens a lot on internals... many are proxy data and work better than true factic data...

 

 

Powerful insight and observation there, Walter.

 

-fs

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Thats it I want my money back :) :) :) :) No new thread!

 

 

We will get there Blow, I need a 30 hour day here, I am just so busy lately... but so far this week this aproach has worked like a charm... let me see if I can post on the weekend... cheers Walter.

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Ok, before starting a new thread on the scalping method I am about to show , I will recap on how this indicators can be interpreted...

 

You basicly have 3 histograms : Combo, top, bottom...

 

when the three are the same color you have a nice healthy trend going on, I will be at this time only focusing in that reading... (trend) there can be so many other uses like divergences, etc... but I will only focus on the trend definition this indicator gives, wich is : 3 histograms of the same color. simple as that..

 

some actual chart :

 

attachment.php?attachmentid=7009&stc=1&d=1213098991

 

 

cheers Walter.

1.thumb.png.e42305cfe8642b85dc5b2b34821a477b.png

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Ok, this is the other alternative I am looking at, using 180 settings on the fxmultimaps... it shows a longer term reading...

 

attachment.php?attachmentid=7011&stc=1&d=1213104625

 

 

 

seems its more robust for trend determination... cheers Walter.

180.thumb.png.c95f5b7f4d32ebc12547f79e0d8b83f2.png

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You basicly have 3 histograms : Combo, top, bottom...

 

when the three are the same color you have a nice healthy trend going on, I will be at this time only focusing in that reading... (trend) ... but I will only focus on the trend definition this indicator gives, wich is : 3 histograms of the same color. simple as that..

 

cheers Walter.

 

Excellent! The simpler you can present it in a thread, the easier it is to grasp the merits of the fxMM indicator. Please try to limit it to say a 5minute time frame which I think would be the best TF to capture the strength/weakness momentum. But, it's your call.

 

ENJOY!

 

ztrader

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Walter,

 

Here is how I look for currency strength vs. weakness. On the day open on WHC MT4 platform, EURCAD bounced off of LOD and EUR started to pick up strength while CAD weakened, as shown in the Excel file I use. By the 2nd hour of the Tokyo open, the Currency Strength Index excel file was showing EUR at +7 and CAD at 1.0. The LONG trade resulted in a quick 30 pips profit.

 

Inter-Currency Analysis or Currency Strength vs Weakness is a very good tool to enter trade with significant momentum within a short time span. You will always find high probability trades with it.

 

ENJOY the Adventure!

 

ztrader

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Walter,

 

Here is how I look for currency strength vs. weakness. On the day open on WHC MT4 platform, EURCAD bounced off of LOD and EUR started to pick up strength while CAD weakened, as shown in the Excel file I use. By the 2nd hour of the Tokyo open, the Currency Strength Index excel file was showing EUR at +7 and CAD at 1.0. The LONG trade resulted in a quick 30 pips profit.

 

Inter-Currency Analysis or Currency Strength vs Weakness is a very good tool to enter trade with significant momentum within a short time span. You will always find high probability trades with it.

 

ENJOY the Adventure!

 

ztrader

 

Nice nice nice ¡¡ you see what I mean, strong against weak currencies themselfs, forming a good potential pair.... nice excell stuff, I asume you also feed that with metatrader ?

 

about the time frames I always end on the scalper style, and still its interesting to see how this techniques still work even on this very small universes...

 

As usual, its a priviledge and a pleasure to interact with an analist of your level as you are...

 

and as usual ENJOY that pipastic Z ¡¡ cheers, The Chimp.

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Very useful information ztrader, do you measure each currency relative to its own movement for the day as the basis for a trade ? If not how does the currency index work ?

 

 

Paul

Edited by Trader333

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Very useful information ztrader, do you measure each currency relative to its own movement for the day as the basis for a trade ? If not how does the currency index work ?

 

 

Paul

 

Thanks Paul. Like I mentioned in my previous post, the currency strength index in excel format only gives individual currency status for a short time span. I usually use it on 1 or 5 minute time frame which is good enough for me to capture 20-40 pips and at times 100+. There be will instances when there will be trade opportunities on more than one pair simultaneously. Today, in the US session, they were USDCAD, USDCHF, USDJPY and there were others but do not meet my criteria. On my next post, I will show couple of other ways, strength and weakness can be measured other than with the excel format. I have two other softwares I can use and set for longer time period, however, I have another method on swing trades on either 4 hours or Daily time frames.

 

Because of the absence of true volume data for forex, the measurement of strength/weakness was improvised based on ticks, bid, ask, OHLC, of all selected forex pairs across the platform datafeed source. From there some interpolation/calculations are done to separate the relative strength/weakness of each currency in real time. Properly use, it is a very good tool and does the job it is intended to do.

 

I hope this helps and answers your questions. With Walter's blessing, I wouldn't mind continuing on this approach along side his FXMultiMap.

 

ENJOY!

 

ztrader

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Thanks ztrader and Walter, I am finding all of this to be good. I take your point about volume data but as you say the improvisation seems to be doing well for you. There are quite a few datafeeds that Excel can work with, do you have to backfill or just run it live ?

 

 

Paul

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Thanks ztrader and Walter, I am finding all of this to be good. I take your point about volume data but as you say the improvisation seems to be doing well for you. There are quite a few datafeeds that Excel can work with, do you have to backfill or just run it live ?

 

 

Paul

 

Ooops, I pressed the wrong button. :). Anyhow, it runs live, real time via DDE option on MT4. I just watch it on another monitor. BTW, I only use this approach mostly on pairs I do not normally trade. I just hit BUY or SELL on either Oanda or FXCM platform to enter live trades for them.

 

ztrader

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Nice nice nice ¡¡ you see what I mean, strong against weak currencies themselfs, forming a good potential pair.... nice excell stuff, I asume you also feed that with metatrader ?

 

about the time frames I always end on the scalper style, and still its interesting to see how this techniques still work even on this very small universes...

 

As usual, its a priviledge and a pleasure to interact with an analist of your level as you are...

 

and as usual ENJOY that pipastic Z ¡¡ cheers, The Chimp.

 

Thanks. Yeah, it's real time feed from MT4. I will be posting later using similar indicator for MT4.

 

ztrader

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Like I said there are number of ways of measuring the strength and weakness of each currency and forex pairs. Walter initially introduced here the use of TopGun Software's "sophisticated" FXMultiMap in 3 different settings. While I posted another using an Excel format. Here are couple more tools shown on the chart below: attachment.php?attachmentid=7038&d=1213203261.

 

Each shows the strength of JPY and weakness of USD in different ways. The bottom indicator [actually an expert advisor] is similar to the excel format attached to a chart. The top indicator is another way which shows the USD scoring 1 indicating weakness while JPY at 8 as strong and getting stronger/rising, a modified version of the Excel format. The middle one measure it completely different and based on range, pivot, support and resistance. All of them work, as a matter of preference, I like the Excel better coz it is simpler, easy to read, and no overload on CPU.

 

ENJOY!

 

ztrader

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ztrader,

 

Is your Excel version one that you have set up and coded yourself or is it generally available ? The reason I ask is that it is an option for me as well.

 

 

Paul

 

Paul,

 

The one I use is my modified version of the commercial copy. The creator has now replaced the Excel format with a full blown software which he is selling, I believe, at about 200 Canadian Dollars. There is also a similar freeware of the original Excel version available somewhere. I will look for the link and check if the site is still working. Please check your private message inbox.

 

I have attached screenshot of the two softwares. Now, you'll know more why I like the excel format better. :)

 

ENJOY!

 

ztrader

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I know this thread is about strength and weakness of Forex but not to leave out the eminis, since I trade them also, I just want to add in here how a similar strength and weakness approach can be applied to emini futures or any instrument for that matter. Here is an example of how the accelerated drop on YM and ES is shown on the same Excel file I use for forex. One can SHORT one or both of them when weakness scoring 1 is shown, add to or stay longer with previously entered SELL for some nice 15-19 plus points each per contract. DONE for the day before New York martini lunch time that's why I am able to make all these posts. :) I only trade them for 2-3 hours. Although, my emini trading method is not dependent on this tool, it is still handy to have.

 

ENJOY!

 

ztrader

 

P.S. Chimp, I hope this is not construed as hijacking the thread. Otherwise, please feel to have them remove. Gracias amigo!

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I know this thread is about strength and weakness of Forex but not to leave out the eminis, since I trade them also, I just want to add in here how a similar strength and weakness approach can be applied to emini futures or any instrument for that matter. Here is an example of how the accelerated drop on YM and ES is shown on the same Excel file I use for forex. One can SHORT one or both of them when weakness scoring 1 is shown, add to or stay longer with previously entered SELL for some nice 15-19 plus points each per contract. DONE for the day before New York martini lunch time that's why I am able to make all these posts. :) I only trade them for 2-3 hours. Although, my emini trading method is not dependent on this tool, it is still handy to have.

 

ENJOY!

 

ztrader

 

P.S. Chimp, I hope this is not construed as hijacking the thread. Otherwise, please feel to have them remove. Gracias amigo!

 

OK, I'll bite - how are these constructed and is it possible to get more info?

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Paul,

 

The one I use is my modified version of the commercial copy. The creator has now replaced the Excel format with a full blown software which he is selling, I believe, at about 200 Canadian Dollars. There is also a similar freeware of the original Excel version available somewhere. I will look for the link and check if the site is still working. Please check your private message inbox.

 

I have attached screenshot of the two softwares. Now, you'll know more why I like the excel format better. :)

 

ENJOY!

 

ztrader

 

If you're willing to share I'd be interested in the excel version as well.

 

Thanks to all you guys for your insight. :)

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Please search for forexgrail for more information on the free xls spreadsheet. Tom Yeomans was the original author but has written a new version for fee.

 

1. Make sure MT4 DDE is enable under tools.

2. Make sure Excel Eurotool is enable under tools.

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Please search for forexgrail for more information on the free xls spreadsheet. Tom Yeomans was the original author but has written a new version for fee.

 

1. Make sure MT4 DDE is enable under tools.

2. Make sure Excel Eurotool is enable under tools.

 

Thanks 3monkeys. You beat me to it. :)

 

Here is also an additional link you can look into: http://www.stideas.com/Free%20Trading%20Tools.htm#r%20leslie.

 

For other Currency Strength/Weakness, including Fundamentals, Technical, and Intermarket analysis, this one is also a good resource site: http://www.pfxglobal.com/eur-usd/eur-usd-currency-pair-analysis-fundamental-and-technical-forex-trading-2.html

 

ENJOY!

 

ztrader

Edited by ztrader
wrong link. sorry....

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