SIGTrader Currency Index Charts

There seems to be a gathering interest in Relative Currency Strength here at FF lately. There's a flurry of activity focused on the subject of determining strong vs. weak currencies, including Steve Hopwood's latest EA (using Hanover's Recent Strength indicator), Scooby-Doo's about-to-be-unveiled 'top-secret' EA, billbss' new thread using RS charts and divergence and capito's thread that may have been the kick-start to all of this with his introduction of SIGTrader's very handy LFX individual currency indices, which are displayed in chart form. Their platform has indices for USD, EUR, GBP, AUD, CHF, NZD, CAD and JPY.

This is the first time I've seen currency strength displayed as a chart and, imo, it looks to be a very promising tool. I opened this thread as a central location to discuss the possible uses of these SIG charts. One method, as mentioned above, is the way billbss is using divergence between the index chart and a corresponding pair, and he seems to be on to something. In my case, applying stochastics and S&R levels to each index helps to identify correlated oversold/overbought areas and high-probability trades in the corresponding pairs. See the screenshot below.

I'm sure there a number of ways we can take advantage of this user-friendly way of viewing the overall market and any and all input is encouraged.

Mike

I use an overlap of gbp/jpy on USDX to help determine risk trends. Here the dollar looks to be getting stronger as the carry consolidate and get weaker.

Have you been using the SIG charts in this way for long? If so, have they been helpful? And are you also able to overlay 2 indices, ie, EUR over USD?

about 2.5 weeks now using sigtrader with overlays. have to keep in mind the overlay indicator isn't the best. it can shift history some so looking at the past won't necessarily look the same as it did when the price action was still unfolding. But I have found it effective on 2 live trades I did on aud/usd.

I didn't think to do an eur index overlay of usd just because I thought it would simply be a mirror image. Actually that's not the case.. tis warrants more study:



Also interesting to note that when prices overlap, the prices of both usually consolidate then at some point breakout. There's a charting package called Pro realtime that has excellent overlay charts, its java based. Unfortunately its overpriced. here is the basic one I found on FF.

Perfect. Thanks. It's bedtime for me so I'll have to wait 'til tomorrow to play with that indi.

Y'know, there're other charts in that SIG platform that could be overlaid, as well. Like the S&P, DJ, NYSE, Oil, Gold, etc. Hmmm . . . . busy day tomorrow . . . .

Looks to be bottoming:

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Some new interest on this topic here =

Long Term CICR (Cross index currency referance) trading