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(binned per thread starter's request) Currency Strength with cont

  • #1,381
  • Aug 5, 2018 2:25pm Aug 5, 2018 2:25pm
I follow this thread for a while with interest. The roofs and floors concept is a bit strange for me, because it depends on the "screen size", although it is true that these structures are horizontal supports and resistances, so they can work well.
(I hope) soon I will get an MT4 currency-index offline chart generator from the creator of CurrencyActivity (and LaserForks (https://www.forexfactory.com/showthread.php?p=11232440#post11232440)!) indicator, I will try these currency charts if these give some advantage vs. pair charts in my trading. Currency chart + support/resistance can be interesting.
  • #1,382
  • Aug 5, 2018 3:07pm Aug 5, 2018 3:07pm
Quoting neilsdigest
{quote} I will quote aaven question here first.... The trouble with the currency index is that they are so old.. With for example pairing the DXY with the BXY (USD index v GBP index) Over 70% of the weight in them indexes are for the EUR.. So can you tell how really strong the USD is or the GBP is... One way of doing in. In tradingview is the make a chart as for example you want to know how the CHF is performing. You add the; CHFGBP+CHFEUR+CHFCAD+CHFUSD+CHFAUD+CHFNZD+CHFJPY and you will get a chart with all the main currencies with equal weight...
Hey Neil, dont know if you know this but there is a broker that offers mt4 indexes of all the major currency indexes?

https://www.liteforex.com/downloads/mt4/ Create a demo account in the mt4 client.
Attached Image (click to enlarge)
Click to Enlarge Name: aud chart.png Size: 50 KB
Anything above the line is an uptrend, below the line is a downtrend.
  • #1,383
  • Aug 5, 2018 3:35pm Aug 5, 2018 3:35pm
Quoting Degolep
{quote} Hey Neil, dont know if you know this but there is a broker that offers mt4 indexes of all the major currency indexes? https://www.liteforex.com/downloads/mt4/ Create a demo account in the mt4 client. {image}

Liteforex indexes?

You got a link to formulas?
  • #1,384
  • Aug 5, 2018 4:35pm Aug 5, 2018 4:35pm
Quoting Botan626
{quote} Liteforex indexes? You got a link to formulas?
Download it like I gave you link.
Anything above the line is an uptrend, below the line is a downtrend.
  • #1,385
  • Aug 5, 2018 4:43pm Aug 5, 2018 4:43pm
Quoting Degolep
{quote} Download it like I gave you link.
I'd like to see the formulas for Liteforex indexes. Cause their values are different from ones on TV. https://www.tradingview.com/markets/currencies/indices-all/

And you gave a link for their MT4 platform.
  • #1,386
  • Aug 5, 2018 5:20pm Aug 5, 2018 5:20pm
Quoting pipman1
Hello all, I just wanted some clarification on how to calculate currency strength using gold (gold ratings), and its relationship with WCU (as a strength indicator). Any feedback or help is much appreciated, thanks in advance. EDIT: I've tried to calculate the currency strength by using XAU/YYY (YYY = currency) and the 200 MA. According to my calculations, the rank order from strongest to weakest is: USD JPY CAD CHF AUD EUR GBP NZD Can anyone comment to whether this is correct or not?
I'll try and do it but looks right. I can't do much as still not at home , so no computer.... I hard doing things on a tablet and it gets frustrating at times..
The most violent element in society is IGNORANCE
  • #1,387
  • Aug 5, 2018 5:22pm Aug 5, 2018 5:22pm
I havnt got time right now to go through every thing in detail... Lack of sleep because it's so damn hot.. My brain is fried..
Two things though... botan626 - I should of put a disclaimer on that million trade as I was just trying to show you how they do it and that was'nt a real trade with the numbers.. Yes the logic in it is way off.... We must remember though that they don't trade the way we do.. They don't have the leverage we do... It's to complicated for me to explain... I was just trying to show you how they do it..

A trade that size that takes 7 seconds is instant.. I can do a real trade for 10 Lots and it can take upto 5 seconds.. In the weak if I find one I think they will do I will show you by screen video how long it can take sometimes.. Last week with the GBP/CAD trade it was instant even though it was moving down and I took a sell trade.
I told you I was a crap teacher... and I should'nt work well past midnight as, as you say my math is off big time..I just can't recall the trade but that was how they did it..

As you say from your answer. NO they can manipulate the market.. Well no.. They will no even though the price is falling like say the GBPCAD, That there isn't BIG sell orders coming in.

If they go in with say the $50 million dollar BUY order it will take seconds to fill as there isnt enough big sell orders coming in to fill it but enough small sell lot order and it will take seconds to fill them..

I hope I am making myself more clear. When I finally sleep and it cools down, I might be able to explain better.. I am really terrible at explaining things.
Billy888 RE: although it is true that these structures are horizontal supports and resistances.

Again NO they are not support and resistance. The floor and roof are not true support lines or resistance lines.

The trouble with currency index's is that they don't show the true strength of that currency
USD
EURx = 34.38805726 x (EUR/USD)^(0,3155) x (EUR/GBP)^(0,3056) x (EUR/JPY)^(0,1891) x (EUR/CHF)^(0,1113) x (EUR/SEK)^(0,0785)
EURO
EURx = 34.38805726 x (EUR/USD)^(0,3155) x (EUR/GBP)^(0,3056) x (EUR/JPY)^(0,1891) x (EUR/CHF)^(0,1113) x (EUR/SEK)^(0,0785)

They all have different weights... No AUD and includes the SEK.

I will try and explian more later if I get a chance..

P.S I don't use MT4 to trade even though I do have an MT4 demo to test things. I hate it LOL

It's amazing what you can do with a tradingview chart.. Make your own formulas etc..

From MT5 saves me writing LOL

I prefer to use "raw" currency strength rather than abstract values that some currency strength indicators use. And it's simple. You simply add up all moves in each currency pair. This is normally done on the 8 major currencies (28 pairs).
So to get say AUD's current strength you would look at each pair AUD is in and see how much it has moved (in percentage terms) from open to current price. Remember that a positive or negative move will depend on if the AUD is the base or quote of a pair. So the (exaggerated) calculation would look something like this:

AUDCAD = 2.2%
AUDCHF = 1.8%
AUDJPY = 2.5%
AUDNZD = 1.2%
AUDUSD = 1.6%
EURAUD = -2.3% (so + 2.3%)
GBPAUD = -1.9% (so +1.9%)
Total = 13.5%

You don't then divide it by 7 to get an average. You want the raw strength and 13.5% is it. That is the current strength of the Aussie compared to the other 7 currencies. You now do the same calculation for each of the other currencies.

If you've done it correctly, when you add up all 8 currencies, the final answer should be......zero! Why? Currency correlation

You can then display the results as either a meter, or as I prefer, a line study. This way you can see the change over time and rate of change to see which is gaining strength, which is losing strength and the speed or strength of the change. So you end up with something like this:

Or if you prefer the indexes;

USDLFX: pow(((USDCHF*USDJPY*USDCAD)/(EURUSD*GBPUSD*AUDUSD)),0.142857142857142855714285714)
EURLFX: USDLFX * EURUSD
LFXJPY: USDJPY / USDLFX
GBPLFX: USDLFX * GBPUSD
AUDLFX: USDLFX * AUDUSD
NZDLFX: USDLFX * NZDUSD
CHFLFX: USDLFX / USDCHF
CADLFX: USDLFX / USDCAD

I'll try and do more but finding it hard at the minute.

Disclaimer. Grammar and spelling Mistakes will be rectified... I can't remember the last time I slept more then 3 hours in a night. Pigging to hot.
The most violent element in society is IGNORANCE
  • #1,388
  • Aug 5, 2018 5:53pm Aug 5, 2018 5:53pm
Quoting neilsdigest
I havnt got time right now to go through every thing in detail... Lack of sleep because it's so damn hot.. My brain is fried.. Two things though... botan626 - I should of put a disclaimer on that million trade as I was just trying to show you how they do it and that was'nt a real trade with the numbers.. Yes the logic in it is way off.... We must remember though that they don't trade the way we do.. They don't have the leverage we do... It's to complicated for me to explain... I was just trying to show you how they do it.. A trade that size that...

You confused me a little bit now. Let's finish this Big Boys topic later. If it's of no issue to capture for you a video, please make it. I'm already anticipating it.


But honestly, why you wont drive up in the mountains for better conditions to cool off? I experienced such 40°C plus weather for almost a week and it was dead awful. And you are already around 1 month into your trip?
  • #1,389
  • Aug 5, 2018 5:59pm Aug 5, 2018 5:59pm
Quoting Botan626
{quote} You confused me a little bit now. Let's finish this Big Boys topic later. If it's of no issue to capture for you a video, please make it. I'm already anticipating it. But honestly, why you wont drive up in the mountains for better conditions to cool off? I experienced such 40°C plus weather for almost a week and it was dead awful. And you are already around 1 month into your trip?
Confused you. I even confused myself.... You just can't think in these temperatures. You can't even do anything.. or even sleep. I'm exhausted lol
The most violent element in society is IGNORANCE
  • #1,390
  • Aug 5, 2018 6:13pm Aug 5, 2018 6:13pm
Quoting neilsdigest
{quote} Confused you. I even confused myself.... You just can't think in these temperatures. You can't even do anything.. or even sleep. I'm exhausted lol
Hmm so do you calculate currency strengths using both gold and "raw" currency strength calculations and compare for similarities? (as well as scorpionfx)
  • #1,391
  • Aug 6, 2018 1:52am Aug 6, 2018 1:52am
Quoting Botan626
{quote} I'd like to see the formulas for Liteforex indexes. Cause their values are different from ones on TV. https://www.tradingview.com/markets/currencies/indices-all/ And you gave a link for their MT4 platform.
Well I don't know about their values but I can say they reflect all the moves from the individual pairs.
Anything above the line is an uptrend, below the line is a downtrend.
  • #1,392
  • Aug 6, 2018 5:25am Aug 6, 2018 5:25am
Quoting neilsdigest
I havnt got time right now to go through every thing in detail... Lack of sleep because it's so damn hot.. My brain is fried.. Two things though... botan626 - I should of put a disclaimer on that million trade as I was just trying to show you how they do it and that was'nt a real trade with the numbers.. Yes the logic in it is way off.... We must remember though that they don't trade the way we do.. They don't have the leverage we do... It's to complicated for me to explain... I was just trying to show you how they do it.. A trade that size that...

Nice explaination Neil.

As for the AUD example, if we know its the strongest, what can we do with that info to trade in real time? I have been thinking about this for some time but fail to come up with a system to trade based on this concept because if a currency is strong in the currency time it can suddenly become weak later.

If i bought the AUD against the weakest currency, later or at any time the AUD can lose its strength...
  • #1,393
  • Edited 6:24am Aug 6, 2018 5:58am | Edited 6:24am
Quoting neilsdigest
{quote} Confused you. I even confused myself.... You just can't think in these temperatures. You can't even do anything.. or even sleep. I'm exhausted lol

If you don't receive pleasure from your vacation, why you won't change the way you do it drastically?

Looks more than warm:

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 222 KB


Just staying inside under air conditioner won't help?
  • #1,394
  • Aug 6, 2018 8:19am Aug 6, 2018 8:19am
Quoting Botan626
{quote} If you don't receive pleasure from your vacation, why you won't change the way you do it drastically? Looks more than warm: {image} Just staying inside under air conditioner won't help?
Here in Portugal there were temperatures of 48º celsius.
There is no record of such high temperatures. The weather is really changing!
  • #1,395
  • Aug 6, 2018 8:27am Aug 6, 2018 8:27am
Global warming.
  • #1,396
  • Aug 6, 2018 8:43am Aug 6, 2018 8:43am
Quoting neilsdigest
I havnt got time right now to go through every thing in detail... Lack of sleep because it's so damn hot.. My brain is fried.. Two things though... botan626 - I should of put a disclaimer on that million trade as I was just trying to show you how they do it and that was'nt a real trade with the numbers.. Yes the logic in it is way off.... We must remember though that they don't trade the way we do.. They don't have the leverage we do... It's to complicated for me to explain... I was just trying to show you how they do it.. A trade that size that...

Neil,
you accidentally gave the same formula for USDX as for EURX.

Should be: USDX = 50.14348112 × EURUSD^(-0.576) × USDJPY^0.136 × GBPUSD^(-0.119) × USDCAD^0.091 × USDSEK^0.042 × USDCHF^0.036


As for LiteForex Indexes,

USDLFX = ((USDCHF * USDJPY * USDCAD) / (EURUSD * GBPUSD * AUDUSD))^(1/7)
EURLFX = USDLFX * EURUSD
GBPLFX = USDLFX * GBPUSD
etc...

MathTrader7 made an EA to create offline LFX indexes (no wicks).
https://www.forexfactory.com/showthread.php?t=537705
  • #1,397
  • Aug 6, 2018 9:33am Aug 6, 2018 9:33am
Guys, just got the link from Don, the program is ready.

Currency-index chart maker for MT4 can be downloaded from here:
CurrencyCandles (https://donforex.com/currencycandles.php)
  • #1,398
  • Aug 6, 2018 12:50pm Aug 6, 2018 12:50pm
Re: KingMark - As for the AUD example, if we know its the strongest, what can we do with that info to trade in real time? I have been thinking about this for some time but fail to come up with a system to trade based on this concept because if a currency is strong in the currency time it can suddenly become weak later.
If I bought the AUD against the weakest currency, later or at any time the AUD can lose its strength...

Yes it will... A strong will become weak etc over time and even on different time zones.

... I use the daily strength... Like today the GBP wooooohoooooo is the weakest still and paired it with the CAD like I did Friday.

GBP currency trend down Daily
CAD Currency trend down Daily

GBPCAD trend down Daily - H4 Trend down - H1 Trend down... I don't usually go lower and its just little pullbacks etc.
GBPUSD trend down daily - H4 trend down - H1 trend up (Was down earlier)

I'll try and write the code for it for MT4.... When it rains and goes cold LOL

Botan626.... Even Moscow is in the mega red.. Not sure how hot that gets in the Summer but the whole of Europe is melting like the GBP LOL
Wild fires everywhere because it is so dry..... I'm leaving soon.. Better to get flights home and go to Iceland or the north pole.. Norway or Swedwn be nice and try and see the northern lights.

Re: jjble - Here in Portugal there were temperatures of 48º celsius. That must be a record.. Not only the temp but how long its been going on...

Botan626... Glad you caught the mistake because I never did... I must of copy and pasted it from a file but copied the wrong one... With this heat, if I write something, just take no notice and do the opposite ;-)

Re:Billy888 .. I'll get that when I finally get back home. Had enough of the heat... Don is a fantastic coder and that will come in handy for testing... Arghhhhh MT4 I hate it lol

There is one theory.... When Great Britain is in red on the weather map - Sell the GBP...
Now all do rain dances.... No storms etc as it's so hot that their is no cool air to make a thunderstorm.. It just keeps on getting hotter and hotter.

Were all doomed !!! When you can't leave because of the heat and wild fires you get in a cool spot, chill with plenty of water a sell the GBPCAD.... Trouble is because I was working on the tablet and it was so hot, I hit sell twice by mistake. Lucky it never rebounded upwards... Told you I was an Idiot..
Attached Image (click to enlarge)
Click to Enlarge Name: AverageFILLPrice.png Size: 39 KB
The most violent element in society is IGNORANCE
  • #1,399
  • Aug 6, 2018 1:31pm Aug 6, 2018 1:31pm
Quoting Botan626
{quote} False logic. At this point if GBP/WCU hits the floor again, we are supposed to watch what the XAU/GBP does- It should go down. When any currency hits the floor or the roof, we are expecting for it to go the opposite direction. You can see on the chart below that all GBPWCU, XAUWCU and XAUGBP hit the floor. But that doesn't mean they will start going up in a straight line. {image} In fact on the last Friday it was that GBP was quite ranging, but the GOLD went up quite big. So XAUGBP went up. So I will repeat, that we are looking for a change...
Botan626,

I understand that when currency hits the roof or floor it is only an expectation and not a guarantee.

In your example, GBPWCU, XAUWCU and XAUGBP hit the floor.[For a second, let's assume the floor is going to be low],

GBPWCU is at the floor--> GBP Currency is weakest.

XAUGBP is at the floor-->GBP Currency is strongest/Stronger compared to Gold.

When GBPWCU hits the floor, to watch Money Flow XAUGBP has to hit the floor/go down, My Confusion is this contradiction...

Appreciate the reply Botan.

Thanks
  • #1,400
  • Aug 6, 2018 1:34pm Aug 6, 2018 1:34pm
Quoting neilsdigest
Re: KingMark - As for the AUD example, if we know its the strongest, what can we do with that info to trade in real time? I have been thinking about this for some time but fail to come up with a system to trade based on this concept because if a currency is strong in the currency time it can suddenly become weak later. If I bought the AUD against the weakest currency, later or at any time the AUD can lose its strength... Yes it will... A strong will become weak etc over time and even on different time zones. ... I use the daily strength... Like...

I never thought this day would come, where India is cooler compared to Europe/Britain...

Jokes aside, Neil Stay hydrated and be in a cool place. Heat/Sun Stroke is not a joke and a killer in the literal sense...

Stay Safe...
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