[quote=PayItForward;13650887]
Thank you PayITForward as you have cleared a big confusion in my head.
I am doing a very similar thing in Excel but I had no idea it is what is referred to as the (GAP) in the PDF. My head was thinking of Price opening with a GAP (as in stocks) although we do not witness gaps in Forex as in the Stock market.
If it were me, I would use the term (Derived value ) rather than (GAP) as the latter is somehow misleading.
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@anyone
interested in understanding the whole concept.
One of the ways to calculate CSM is by measuring (current Price - Low of the interval)/(High of the interval - Low of the Interval) * 100.
Then the outcome of all seven pairs of each Currency group is averaged. Some may give it a score. For example, if the percentage is 70, then assign a score of 6 or 7, etc..
Now, let's come to the term (GAP) or as I prefer to name it (Derived Values).
If we have absolute strength of 80 percent for EUR and 30 Percent for USD. This means that the (GAP) or (Derived Value) for EURUSD is (80-30)=50.
Then we can compare this Derived value per interval against the previous one.
Also we compare this Derived value with the actual/real strength of the current candle.
-----------------------------------------------------------
@PayITForward
Cheers,
Disliked{quote} Two different things. See https://www.forexfactory.com/marialuiza for Gap theory and attached .pdf {image}Ignored
I am doing a very similar thing in Excel but I had no idea it is what is referred to as the (GAP) in the PDF. My head was thinking of Price opening with a GAP (as in stocks) although we do not witness gaps in Forex as in the Stock market.
If it were me, I would use the term (Derived value ) rather than (GAP) as the latter is somehow misleading.
-------------------------
@anyone
interested in understanding the whole concept.
One of the ways to calculate CSM is by measuring (current Price - Low of the interval)/(High of the interval - Low of the Interval) * 100.
Then the outcome of all seven pairs of each Currency group is averaged. Some may give it a score. For example, if the percentage is 70, then assign a score of 6 or 7, etc..
Now, let's come to the term (GAP) or as I prefer to name it (Derived Values).
If we have absolute strength of 80 percent for EUR and 30 Percent for USD. This means that the (GAP) or (Derived Value) for EURUSD is (80-30)=50.
Then we can compare this Derived value per interval against the previous one.
Also we compare this Derived value with the actual/real strength of the current candle.
-----------------------------------------------------------
@PayITForward
Cheers,