Individual Currencies & Relative Strength

This is what you use to trade forex, split currencies into parts you can see each part live in all time frames to determine strength and direction Requires special software and data feeds and knowledge beyond the scope of things here. This is how a professional trades forex.

Its easy, if the green blur is bigger than the red blur you buy the green blur.

Wow!

Also:
Thanks for the feedback on the diagram Hip!

And, Clockwork from J16 is in the house?
We're cooking with fire here!

Starting to play around with monitoring the parts (E/U, U/J) to
trade the cross (E/J).

The usd portion has nothing to do with the eur/jpy. and the usd is a major part of the eur/usd and usd/jpy. Good luck

Forexharry...................Very interesting screenshot. Tradestation?

As a contributor at FF and in this thread, would you care to direct us to a source for the software and data feeds you reference? After reading your posts since becoming a FF member, it seems that most have a condescending air about them. I hope I am wrong about the impression I am developing about your motives for posting. Posting from you that includes more than just a "drive-by" reference as to how "professional traders" trade the forex would be both refreshing AND helpful. Care to share?

Hello Chris,

Thanks for poking your nose in here. I watched your video; interesting! I'll spend some time later this week trying out your suggestions.

4Xharry

i can't open this zip. what files are in the folder?

This is in the zip file:

that's a work of art

Okay. Here's another approach.

In the diagram there are two groups.
One EUR and one JPY.

When all are in agreement (e.g. rallying)
trade the EUR/JPY in the same direction.

Also: Attached is a shot where all of the
planets aligned (LOL all six were falling)
so I shorted E/J.


I know that I must be reinventing the wheel
here big-time. LOL But, I'm just throwing out
some ideas.

It is more then a work of art, you are looking at as close has you will get to a "holy grail".

To address BB here NO it is not Tradestation. NO i am not affliated with the software or data provider in any form other then an user. I do not think you are suppose to promote software vendors here by name. If I was trying to find a vendor I would "google" an word that appears many times to see what might pop up from the search.

Now BB how am I to take this Help or...... has a threat? After you have spent the better part of 6 years of 18hrs a day and hundred's of thousands of dollars learning to be a professional forex trader then you can question my motives but till then please keep your thoughts concerning me addressed to me personally or you might be on the other end of "or".......

Is this it? Looks interesting.

Yup, this is my contribution to FF not a Fancy Indicator or EA or system or concept but what actual trading of forex is really about strength and direction. Now use Money Management and a lot of screen time learning all about this Inter-Market Relationship and you can make money trading forex every time you trade, believe me it is possible. I wish you the very best.

I really hope you don't mind the posts, BB!
Just let me know, okay?

Here's a setup with just the Majors and the
idea being that if USD is strong/weak across
all four then you can take a trade based on
this temporary situation.

Here E/U and G/U move together in opposition
to U/J and U/CHF.

In this trade I bought USD/CHF when USD
showed strength across all four pairs.

I only got a pip or two here but, you get the
idea.

Maybe I'll make this the last post for awhile
before I wear out my welcome!

Good trading all!

The missing word in this heading is "What?". So you are right, I was questioning your motives and still do!

This statement however does appear to be a threat: "or you might be on the other end of "or" ".

There is something very familiar about your style of posting..................

This is one of the internet videos I watched that prompted my starting this thread. There are other videos like this and the software that is promoted is available at several websites. It's the logic and technology behind all this that interests me. I don't want to open an account with a particular broker to obtain "free" software, "free" e-signal and "free" training, only to learn at some time in the future that all the "free" stuff will now only be available for a monthly fee. Even the person on the video admits that he wants people to get "hooked" on this trading method. Then what? I prefer to understand what is happening and why for the purpose of adapting it to my trading style. And hopefully other traders who share in this discussion will benefit too.

All constructive posts are welcome in this thread !!!

Here is a tool which you may already have, but it is a nice tool in your toolbox. It's been around for a while but is very useful for looking at the strength / weakness of individual currencies. Although it displays on your chart like an indicator it is actually an EA and is put into the Experts folder of MT4 and NOT the Indicators folder. (Save in c:\program files \yourMT4folder\experts). Attach it to your charts from your Experts folder. This is because the algorithm is run on a tick by tick basis and the loop which controls it can't be easily done as an indicator, but works as an Expert Advisor much more effectively.

I also have an Excel file which does the same thing, but displays it in a spreadsheet format (contact me by PvtMsg if you want that file as there are a few special instructions that are particular for pulling data from MT4 into Excel).

When you run this EA, make sure you check "Allow DLL imports" from the "Common" tab and also make sure to select from the "Inputs" tab if you are using a mini account or not (true / false) in your particular MT4 platform.

Pair a strong currency with a weak currency and trade that combination for most optimal use. DO NOT USE THIS TOOL BY ITSELF TO MAKE TRADE DECISIONS. Use it in conjunction with other factors such as pending news announcements, support and resistance levels and what the US market is doing (the Yen is sensitive to our stock market more than most others during US trading hours) and price of Oil, etc. Use also with the indicators that you have become comfortable with (RSI, MACD, etc.) and blend it into your current trading style.

You can get MT4 oil, gold, DJI, Nasdaq, etc. data through MT4 by opening a demo acct with Alpari Russia (not Alpari UK) for easiest general world market overviews. Also, www.quote.com is also helpful in seeing Nikkei and Hang Seng and oil quickly and you can arrange this webpage to your liking.

This meter's algorithm compares each currency to a basket of currencies to gauge it's overall strength. It is a live time meter and you cannot see the strength / weakness of the past and you cannot choose a timeframe. But it is a wonderful live meter. Be aware that there will be a small delay when you put this EA into a chart or when you switch timeframes. It's doing a lot of calculations to display this meter, so give it the extra seconds to do the math.

Trading strength and weakness is a more evolved method of making trade decisions, rather than relying on lagging indicators for decisions. Most seasoned traders (who have survived the retail Forex jungles) arrive at this approach. I hope this information is helpful.

Stroll down the hill, don't run! Cheers

pipsqueak4x

You could also just get some data for the eur and usd indexes which are calculated against a basket of currencies. This heat map includes a couple more pairs in its data however. I use Forex Ltd for charting them.