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-   -   Currency meter trading - strongest v weakest (https://www.forexfactory.com/showthread.php?t=219398)

Vantage Feb 5, 2010 4:15am | Post# 1

Currency meter trading - strongest v weakest
 
4 Attachment(s)
I have been watching this currency meter for a few days now. Whilst this is early to open a thread this really is a case of 2 (or more) heads are better than one. You cannot go back and see what happened with this version.

Currency meter
The currency meter shows the strength of that currency across all pairs with a weighting according to the importance of each pair.
Blue is very weak, red very strong and the idea is to trade the strongest v weakest. I have shown 2 examples of the currency meter. For further information to download and use please go to http://www.currencystrengthmeter.com/

The upper picture shows eur very weak at 1.5 and jpy very strong at 8.3 so you would be looking to sell eurjpy. I'd personally prefer to trade majors as opposed to nzd. Cad and aud don't do much for me either to be honest.

GU charts attached. Before London opened usd was around 4 and gbp thereabouts also. No clear direction. The red candle, arrow down, was a clear lower high close for me, at that time the currency meter showed usd was getting stronger and gbp weaker. At the time of the shooting star usd had moved to around 7 and gbp 2. Clearly gbp was weak across all currencies and usd strong across the board.

This gave a sell around 1.5716. I followed this up with 2 further sells from 1 min chart as the currency meter still showed usd strong and gbp very weak.

This is an open ended request for all interested to contribute thoughts/ideas how to best use the currency meter. At the moment I am still looking at 5 min higher lows/lower highs and re-entry off 1 min charts when the strongest v weakest is clear.

What is obvious is that like VSA trading what happened before is very important with the CM, its relative. If you had strong v weak previously and these turn around you can get very good trades. So you could see for example a higher low with gbp say at 3 and usd at 2. Not very convincing to buy gu you might say. However if gbp was previously 1 and usd was 5 you would have seen gu falling. Now with a higher low and gbp 3 with usd 2 you have a big swing from gbp 1 and usd 5 and good reason to think the move up may have some legs.

All trading norms apply, patience, discipline, money management etc etc. Respecting pivots, proven supp' and rest' areas, round numbers etc etc. The higher low lower high thread http://www.forexfactory.com/showthread.php?t=108544 has the daily pivots and monthly pivots on that I'll still use.

Personally I'll be focusing on eu, gu and ej but having a few others in the background. As a general rule I trade the London session and sometimes the London close/US open overlap. Also we like to keep going until gu has had its 100 pip run. If we get any decent piece of that we are happy.

The currency meter is not the holy grail but hopefully a tool that can genuinely contribute, putting the odds a little more in our favour.


Possible trade set ups:

  1. strongest v weakest, 5 min hl/lh's and re-entry off 1 min bounces as long as the currencies are staying strong/weak. This appears to be the bread and butter trade. A 4 point spread appears to give very good trades.
  2. turn, a 4 and 2 for a pair turning to 2 and 4 ie a swing of 4 points (just an example on numbers the idea is the turnaround). GU in particular seems to give nice trades on this 'turn' in strength.

Thanks to Henry Liu for making this freely available. He has thanked the original developers.

I have been classified as a commercial member. I stress I HAVE NO COMMERCIAL/FINANCIAL BENEFIT WHATSOEVER in referring this freely available currency meter. I am not endorsing any other product by Henry Liu, I do not use any of his other services. He has made this product freely available and yet again I thank him for that.
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luxinterior Feb 5, 2010 5:01am | Post# 2

There's quite a few threads already discussing this and similar tools. Check the links at the bottom of your thread to see a few.

Lux

Vantage Feb 5, 2010 5:04am | Post# 3

There's quite a few threads already discussing this and similar tools. Check the links at the bottom of your thread to see a few.

Lux
The ones I've seen that includes 2 of the ones below seemed to have died off after a few posts.

Vantage Feb 5, 2010 5:12am | Post# 4

For the last hour or so usd around 6.5 and eur, cad, chf and gbp below 4. CAD and CHF the lowest they had the best moves 30-40 odd pips v usd. Eur fell as it should, gbp bucked the trend moving up.

Syahmi Feb 5, 2010 5:15am | Post# 5

CPU Resources
 
Hi there....

The problem with this meter is - it is highly CPU load and tasking (resources intensive). Those with higher RAM of more than 2Gig is tolerable.

The meter should be less CPU load and tasking. For those meter-readers out there, I would suggest Fx4caster or excel-based meter.

Cheers !

P/s: It's using 19 pairs to calculate whilst fx4caster is using 26 pairs, other excel-based meter is using 28 pairs. More pairs mean more accuracy, I guess.

Vantage Feb 5, 2010 5:15am | Post# 6

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Currency meter.

If you were in eu you'd maybe consider exiting, uc consider staying in as cad is weakening further.
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Vantage Feb 5, 2010 5:19am | Post# 7

Hi there....

The problem with this meter is - it is highly CPU load and tasking (resources intensive). Those with higher RAM of more than 2Gig is tolerable.

The meter should be less CPU load and tasking. For those meter-readers out there, I would suggest Fx4caster or excel-based meter.

Cheers !
This one was re-written by Henry Liu to avoid that specific problem.

profi4554 Feb 5, 2010 5:30am | Post# 8

Hi there....

The problem with this meter is - it is highly CPU load and tasking (resources intensive). Those with higher RAM of more than 2Gig is tolerable.

The meter should be less CPU load and tasking. For those meter-readers out there, I would suggest Fx4caster or excel-based meter.

Cheers !
LOL.. there is no problem with the currency meter.

One of my pc is running on Pentium 4 2.66 with 768MB RAM. Still can run smoothly with Messenger and Chrome on.

Cheers

Vantage Feb 5, 2010 5:30am | Post# 9

USD numbers falling.

Vantage Feb 5, 2010 5:34am | Post# 10

USD numbers falling.
Just posted that one quickly just to show in real time the help that this can be. Of course everything can turn around but if you were in usdcad and you thought its hanging around too much at .0775 the drop in usd numbers gave you a heads up to get out perhaps 10 pips better off.

Obviously it won't always work this well, but what does?

Vantage Feb 5, 2010 5:37am | Post# 11

LOL.. there is no problem with the currency meter.

One of my pc is running on Pentium 4 2.66 with 768MB RAM. Still can run smoothly with Messenger and Chrome on.

Cheers
Thanks profi.

Vantage Feb 5, 2010 5:40am | Post# 12

Cad's falling, usd up a little so now do you re-enter? For me no, I'm finished now until after NFP.

Vantage Feb 5, 2010 5:52am | Post# 13

LOL.. there is no problem with the currency meter.

One of my pc is running on Pentium 4 2.66 with 768MB RAM. Still can run smoothly with Messenger and Chrome on.

Cheers
Hi again profi. have you been using currency meter long? If yes any pearls of wisdom?

profi4554 Feb 5, 2010 5:54am | Post# 14

Hi Vantage,

Would like to know how you categorized all the color in the currency meter.

AFAIK, Blue is the weakest starting from 2.00 and below.
Mean while Red is the strongest when meter is above 7.00

Cheers

profi4554 Feb 5, 2010 6:01am | Post# 15

Hi again profi. have you been using currency meter long? If yes any pearls of wisdom?
Not so long V. Just got it download when I read your thread. Was monitoring how to utilise it usefully.

Yesterday big drop was very worth to watch the meter in action. I was only watching pair with Blue and Red. That is the one I am going after. Orange is just like alert signal. Move is not so strong if pair in Orange color compared with Red.

And as what you mentioned on your thread, disregards pairs with minimal different value.

Did you happen to see yesterday when JPY and USD both in Red color. But which side did USDJPY goes. Interesting right?

Cheers

Vantage Feb 5, 2010 6:02am | Post# 16

Hi Vantage,

Would like to know how you categorized all the color in the currency meter.

AFAIK, Blue is the weakest starting from 2.00 and below.
Mean while Red is the strongest when meter is above 7.00

Cheers
Yes as you have it with yellow the middle weak ground and 5.1 to 7 brown and stronger.

Vantage Feb 5, 2010 6:11am | Post# 17

Not so long V. Just got it download when I read your thread. Was monitoring how to utilise it usefully.

Yesterday big drop was very worth to watch the meter in action. I was only watching pair with Blue and Red. That is the one I am going after. Orange is just like alert signal. Move is not so strong if pair in Orange color compared with Red.

And as what you mentioned on your thread, disregards pairs with minimal different value.

Did you happen to see yesterday when JPY and USD both in Red color. But which side did USDJPY goes. Interesting...
OK no problem looks like we'll be learning together.

Don't remember seeing UJ but I might of, watching so many runs unfold. Some I got in and some missed.

Obviously you want to get in before an extreme is reached but there seem to be lots of examples where one side is strong/weak and the trade happens when the other half starts moving.

Another thing I've seen is weakness follows weakness and strength follows strength which also supports waves in trades hl/lh's.

Also it will help me, how many times have I been watching a few currencies and there have been good low risk low drawback trades elsewhere.

Time will tell but I'm pretty optimistic.

Vantage Feb 5, 2010 6:14am | Post# 18

Another thing I have an 8 lwma on 1 min chart and if pairs are at extremes and staying there ie above 7 below 2, I'll prob be looking to trade pullbacks and moves in trend direction across 8 lwma.

profi4554 Feb 5, 2010 6:24am | Post# 19

Another thing I have an 8 lwma on 1 min chart and if pairs are at extremes and staying there ie above 7 below 2, I'll prob be looking to trade pullbacks and moves in trend direction across 8 lwma.
I have an extra EMA 5 Shift 3 with 8 LWMA.

It's nice to be alert when the meter start to show 6.00 / 2.50. Pick a pair that we want to concentrate.

Looks like EUR gaining stronger now. EJ crawling up a bit.

pete.alfa Feb 5, 2010 7:17am | Post# 20

Hi Vantage & Profi,

I think it's useless for daily chart but it pick up reversal at 4h & 1h charts. I checked with Eur 5.7 Nzd 7.5 with Cad 2 now up to 3.3

But I dont think it will work with 5m.

now Cad suddenly has moved up to 7 then the E/C 5m sharply drops 54 pips & NZ/Cad drops 25 pips?. No news???
5mins later Cad droped to 6.3 & now 7.3. prices drop again 5-10 pips
I think the meter is immediately response. but it might works with 1h & 4h

Hope it helps

Cheers,


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