{quote} Thanks a lot Teabut really strange i have received more alerts than u
Simple Correlation Indicator System
{quote} Hi Kirk, The Strength separation indicator works fine on the majors but not so well on the cross pairs. Any idea on how to tweak it? Anyone?
As this indicator measures the strength of one currency against another, if you are considering any pair not involving the USD you really need something in the market that increases the volatility of that pair, e.g. news etc. That's not to say that technical analysis won't work on non-USD pairs with the SS indicator, it's just not as obvious and not as frequent.
My strategy purely looks at the majors as the USD strength plays a major role in these pairs' course. For example, if you notice AUD/EUR/GBP and NZD all rising together, you can assume it is due to USD weakness.
If you are interested in JPY pairs only, you need to take notice of the group strength of AUD/EUR/GBP/NZD and if these are all rising against JPY, then you can assume there is JPY weakness across the board. It is here you can exploit the differences in strength and search for signals on these non-USD pairs.
Unfortunately for the SS indicator, it just can't catch the signals quite as easily for non-USD pairs as it can with USD, and requires a bit more attention to detail. But the signals are there.
Try turning the USD line to visible and do some analysis...see screenshots attached of the GBPJPY pair with USD line visible and notice that when there was a separation in GBPUSD, overall GBP strength increased against the JPY also...whilst ever GBP was well above USD there was a rise in GBPJPY, and then when there was a cross back at the zero line, we see a reversal of strength against JPY and a drop in price accordingly. The cross of GBPUSD at the zero line would have been a great exit point for the BUY trade on GBPJPY.
If having three currency lines is too much "spaghetti" for you, a similar way of achieving this is to have two monitors, or if you have just one available, two chart windows showing on the screen side by side, i.e. one for GBPUSD and one for GBPJPY. This way, if there is a strong signal on GBPUSD you can use that to better inform your trading decisions on GBPJPY. Takes some time and practice, but it is worth the effort especially if non-USD pairs are "your thang."
Try tweaking the iPRI number also...in the example in the screenshots I am using a (34) iPRI rather than the standard (89) I normally use. The (34) seems to pick up signals better on non-USD pairs, but you will need to test this more as I don't usually trade anything but the majors. Oh, and ensure you have the same iPRI value on both charts...
Hope all that helps somewhat!
Trade to Live - Don't Live to Trade
- #506
- Oct 18, 2016 2:18am Oct 18, 2016 2:18am
- | Joined Jul 2007 | Status: Trader | 1,399 Posts | Online Now
This one was perfect setup and quick result.{image}
The keys to any strategy (in no particular order) are:
1) patience when waiting for the market to come to you;
2) knowing and trusting your "edge" intimately so you have confidence to pull the trigger;
3) a decent exit strategy;
4) appropriate Money Management, and;
5) know when you have had enough for the day.
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Tea you seem to have it all sewn up. Nice work buddy. I hope to be able to post some of my own trade results at some stage but in the interim you are a shining light for us all here.
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5 pips here, 5 pips there...no rush...let them come. ☺
Trade to Live - Don't Live to Trade
- #511
- Oct 18, 2016 5:19am Oct 18, 2016 5:19am
- | Joined Jul 2007 | Status: Trader | 1,399 Posts | Online Now
This one ended in loss need to analyze more what happened. {image}
But on looking at your screen, it doesn't appear that price broker the renko upper channel, which would have been the entry signal. Think of the channel kind of similar to a fractal point...if price stays within the fractals it becomes range bound. If it breaks a fractal we look for a new high / low fractal point.
Maybe just wait a bit longer for confirmation and check whether price is actually heading higher / lower after breaking the channel boundary. Cool?
EDIT:...also, I notice you have your Daily Open filter switched on...if you test it being off, you would have received a nice signal for that down move as soon as price broker through the renko channel lower boundary...just a thought. These user inputs in the indicator are there to be played with. See what you reckon anyway.
Trade to Live - Don't Live to Trade
- #516
- Oct 18, 2016 6:15am Oct 18, 2016 6:15am
- | Joined Jul 2007 | Status: Trader | 1,399 Posts | Online Now
[quote=Anyway please if Kirk allows in his thread, report your findings here with some examples for benefit of others too[/quote]
Tea as much as I am pushing this strategy because I am confident that it can pull pips out of the market if people use it correctly, I know that people are going to test it with other indicators that they already know and trust and that is fine.
I guess as long as the main focus of the thread isn't lost, which is the concept of strength / separation and an overall supportive environment for people to come and learn. I am happy with that.
Oh, and nice job with the 5 pips...yet again!
Tea as much as I am pushing this strategy because I am confident that it can pull pips out of the market if people use it correctly, I know that people are going to test it with other indicators that they already know and trust and that is fine.
I guess as long as the main focus of the thread isn't lost, which is the concept of strength / separation and an overall supportive environment for people to come and learn. I am happy with that.
Oh, and nice job with the 5 pips...yet again!
Trade to Live - Don't Live to Trade