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Trading system using relative strength

  • #2,541
  • Dec 9, 2015 5:52pm Dec 9, 2015 5:52pm
Quoting Rafsan
Well, I am so much confused , which indicator do i use now ? So many indicators in the thread attachment? Somebody suggest something. Will really appreciate it.
This system is based on CCFp. Read this and this to get clear definition of what CCFp does. These two is one of the earliest documentation of CCFp. There you'll find CC and CFP also.

And then there is CCFp cvert and this and that.

Just read the links i provided in this post and finish them. Afterwards, you'll find the value of each indicators in this thread.
  • #2,542
  • Dec 9, 2015 6:27pm Dec 9, 2015 6:27pm
Quoting since80808
{quote} Bravo! Can you explain YOUR vision of this strategy? When to open, when to close? I mean ES did not give formalised rules, basis only - and every one use it as understand. So how do you see triggers and how do you manage positions? If you can. Thank you!
Your question is quite good actually. ES trader himself does not explain how he close his positions in this thread.

And at this point, we're coming to a critical part of trading : When to exit?

Attached Image (click to enlarge)
Click to Enlarge Name: ! usd weakening 0700.png Size: 19 KB


Attached above is my ff panel. The time is 2300 09th December for GMT 0000.

You'll see that USD is weakening for the past 12 hours and all the pairs related to USD affected.

It maybe because news announcement that causing this.

I'm not the man to explain this (about news announcement). Obviously, I understand what chart indicators tell me.

Attached Image (click to enlarge)
Click to Enlarge Name: ! usd is weakening.png Size: 44 KB


The question is, when to exit all USD-related trades?

Attached Image (click to enlarge)
Click to Enlarge Name: ! usd is strengthening.png Size: 45 KB


Then, it would be great to see how this affect our USD pair, right?

Attached Image (click to enlarge)
Click to Enlarge Name: ! usd 2 vertical line.png Size: 24 KB

Attached Image (click to enlarge)
Click to Enlarge Name: ! gu 2 vertical line.png Size: 26 KB

Attached Image (click to enlarge)
Click to Enlarge Name: ! uj 2 vertical line.png Size: 24 KB


Hope you enjoy this!

(this is a very crude way to explain exits, but it worth to mention. Many questions will arises afterwards i believe)
  • #2,543
  • Dec 9, 2015 6:49pm Dec 9, 2015 6:49pm
Quoting stringfx
Hi Folks, Very interesting thread going on here. I am a big fan of strength meters and recently stumbled upon an indicator called ffx universal strength meter created by master coder Ferrufx. ( a big thanks to him and his generosity .) I have been using this meter for a couple of days now with standard setting provided by Ferrufx . He has coded it for various indicators and for every time frame available in mt4, however i am using only a few of them namely (price candles,macd,cci,adx and moving average) and am using this meter for m15,h1,h4...
thanks for dropping by.

I already tried the USM (universal strength meter).

I also used CSDash, MADDash, Currency Strength Giraia and on and on. You can see whole bunch of currency strength meter here.

Attached Image (click to enlarge)
Click to Enlarge Name: ! hanover .png Size: 34 KB


As you can see. There is many currency strength meter here in ff.

USM (universal strength meter) have other advantages, which includes MA, ADX and others into consideration.

But it is lacking one thing - Rate of Change. We want to see 'changes' from point a to b. For example, we want to make comparison of USM reading from time to time. If we see USD strong at 0900, will it be stronger/weaker at 1400? Am i in the same script with yours?

Quote
If someone could write a code to collect each values of these indicators from all these time frames and provide an easy comments indicator on strong and weak ones. it would be easy on the eyes and can save a lot of time in the analysis.

You can ask this question from FerruFx himself because the USM is created by him. And he gave out ONLY ex4 files.

There have been some requests prior to yours here. It's not directed to USM obviously but the concept stands the same.

There is no need to create a new one. CCFp, CC does it nicely.

Attached Image


Give this a try. Make sure you understand the concept first before applying this.

Attached File(s)
File Type: ex4 CCFp-Diff_[v2.0-MTF].ex4   116 KB | 1,128 downloads

Attached File(s)
File Type: ex4 CC-Diff_[v2.0-MTF].ex4   115 KB | 1,044 downloads


Have a great pips ahead!
  • #2,544
  • Dec 10, 2015 12:35am Dec 10, 2015 12:35am
Redwed,

I have used all the above mentioned strength indicators as well. but i have not found EStrader's method of last 2 4hr bars with current bar's difference successful in the long run. This method can be used for scalping a few pips. ccfp diff was created for this purpose alone. Mostly for day trading, you can use this method but i want to use this USM for determining a longer term trend and by combining fibs with USM, we can almost get precise targets for trend and retracement especially on 4h and daily charts.

For e.g usdCad (recent low at 15th oct) has been going down in value from a long time. Audusd(4th Nov) and Nzdusd (24th aug)are in uptrend (retracement in weekly) for sometime as well.

Now if you check the USM on my template, from daily to 15 minutes, especially 4h and daily we do notice that the green bar on nzd and eur and bottoming red bars on cad . Now if we take a pair like eur cad and draw fib retracements and expansion (like the chart i had displayed in the earlier post). we can conclude on specific targets like 161.8 or 261.8 . In an uptrend with strong and weak currencies, you can almost be sure that these targets will get hit. I am using the word 'almost' coz nothing is rock solid in these markets, it can change very fast. Of course you have to check the red news items on FF as well. For e.g i closed all my nzd trades yesterday as there was a rate decision for a definite rate cut forecast but since Nzd is on a retracement uptrend (on bigger TF) it did an initial burst down, took out some stops and then resumed the up journey.

I will post some more charts for you to get the hang on what i am trying to explain. since USM is not restricted to a couple of bars, the trend can be noticed for a longer time. (similar to ccfp cvert)

But it is lacking one thing - Rate of Change. We want to see 'changes' from point a to b. For example, we want to make comparison of USM reading from time to time. If we see USD strong at 0900, will it be stronger/weaker at 1400? Am i in the same script with yours?

Rate of change cannot be calculated by just a couple of 4h bars. once there is a trend change on 4h or daily, then it will remain in the same trend for weeks or even months. In USM, if you see a confirmed green bar on all the time frames and all the indicators (especially 4h and daily and the lower time frames follow)
Attached Image (click to enlarge)
Click to Enlarge Name: USM.JPG Size: 126 KB
STING
  • #2,545
  • Dec 10, 2015 12:54am Dec 10, 2015 12:54am
Quoting redwed
Give this a try. Make sure you understand the concept
THANK you again!
Just an opinion. Based on research
  • #2,546
  • Dec 10, 2015 1:33am Dec 10, 2015 1:33am
some food for thought.

Notice in the USM, chf and eur seems to be strong on higher time frames. The reason behind this could be that usd is weaker which is pushing these pairs up. Many analysts think there is one more push up in usd index (elliot wave principle). I also notice that after a wave 4 we have 3 completed sub waves which exactly point to 161.8 and usd index could be retracing for a 4th wave to 50% which seems to have completed. So if you notice usd strengthening in the coming weeks and eur and chf weakening, then a sell is on on eur/usd and a buy in on usd/chf . In that case i am expecting usd index to at least go to .61% that relates to 102.25 ... Now better deal would be to buy usd cad as Cad is already in the weak zone. first we have to note if USM is agreeing with dollar strength with a green bar shown on usd in at least a 4 hour chart.

In this case i am combining fibs, Ew and USM to get better profits and near to perfect exit and entries. More to come later on.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usd.JPG Size: 284 KB
Click to Enlarge Name: usdcad.JPG Size: 293 KB
STING
  • #2,547
  • Dec 10, 2015 3:26am Dec 10, 2015 3:26am
Quoting stringfx
This method can be used for scalping a few pips.
This is what we've been doing here

Another poster already stated that this is a very good semi scalping method.

Attached Image (click to enlarge)
Click to Enlarge Name: ! summary tommyd.png Size: 33 KB


I already stated that in my earlier post.

It seems like you're a swinger. So, we will not have the same bias.

In fact, many scalper/day trader don't really rely on the big trend in the market. The only concern for them is liquidity+enough movement to catch some pips.

  • #2,548
  • Dec 10, 2015 3:38am Dec 10, 2015 3:38am
Quoting since80808
{quote} THANK you again!
A friend of mine learn to trade from 2010.

He was cheated a few times and being disappointed many times during that period.

A few days back, he learned how to set up the CCFp-Diff MTF on his PC.

Guess what? He thought that CCFp-Diff MTF is the best approach to trade the market.



Below is his result for today. He felt very happy for the first time.

Attached Image (click to enlarge)
Click to Enlarge Name: ! what it feels like!.png Size: 382 KB


Hope you've the same result too.
  • #2,549
  • Dec 10, 2015 3:57am Dec 10, 2015 3:57am
Quoting redwed
{quote} When to exit? {image} Attached above is my ff panel. The time is 2300 09th December for GMT 0000. You'll see that USD is weakening for the past 12 hours and all the pairs related to USD affected.
I just closed the USD pairs, profit or loss. I'm just keeping my demo simple, I'll use the dashboard to manage the trades now.
  • #2,550
  • Dec 10, 2015 4:01am Dec 10, 2015 4:01am
Quoting Wholesome
{quote} I just closed the USD pairs, profit or loss. I'm just keeping my demo simple, I'll use the dashboard to manage the trades now.
glad you like the dashboard! Hope it helps!....
  • #2,551
  • Dec 10, 2015 4:08am Dec 10, 2015 4:08am
The indicator showing previous 4 hr candles zone and the dashboard showing the traded pairs. if anythings incorrect please shout. have just put these trades on after new candle 10 am GMT.

Attached Image (click to enlarge)
Click to Enlarge Name: 1012ind.png Size: 30 KB


Attached Image (click to enlarge)
Click to Enlarge Name: 1012.png Size: 124 KB
  • #2,552
  • Dec 10, 2015 4:11am Dec 10, 2015 4:11am
Quoting Wholesome
The indicator showing previous 4 hr candles zone and the dashboard showing the traded pairs. if anythings incorrect please shout. have just put these trades on after new candle 10 am GMT. {image} {image}
Which time did your broker operates? 0300 or 0000?
Knowing that is good to compare with others.
  • #2,553
  • Dec 10, 2015 4:14am Dec 10, 2015 4:14am
GMT +2, Daily starts at 10PM GMT.

How can I get rid of the 'chart' on the dashboard. I've set everything to black but as you can see I still get the line chart over the dashboard?
  • #2,554
  • Dec 10, 2015 4:33am Dec 10, 2015 4:33am
As you can see it reached the £1000 TP already, before it did I changed the TP to £2000, just to see more of the price movement really. Changing the TP has reset 'Lowest' information, it was about £550 when I reset it.

Attached Image (click to enlarge)
Click to Enlarge Name: 10122.png Size: 123 KB
  • #2,555
  • Dec 10, 2015 4:48am Dec 10, 2015 4:48am
Quoting Wholesome
GMT +2, Daily starts at 10PM GMT. How can I get rid of the 'chart' on the dashboard. I've set everything to black but as you can see I still get the line chart over the dashboard?
Attached File(s)
File Type: tpl #black.tpl   < 1 KB | 561 downloads


Use this one, and re-attach the dashboard.
  • #2,556
  • Dec 10, 2015 5:07am Dec 10, 2015 5:07am
Quoting Wholesome
The indicator showing previous 4 hr candles zone and the dashboard showing the traded pairs. if anythings incorrect please shout. have just put these trades on after new candle 10 am GMT.
Attached Image


This only tell us what happen in h4 only.

There is a good way to avoid ourselves with DD.

Refine the above entry using h1 and m30 and m15 if you're willing to.
  • #2,557
  • Dec 11, 2015 12:22am Dec 11, 2015 12:22am
Do you have the "timer setting" at the default setting of 240 (4hrs) on the 15min/30min ?
  • #2,558
  • Dec 11, 2015 12:48am Dec 11, 2015 12:48am
Quoting redwed
he learned how to set up the CCFp-Diff MTF
Very nice looking!
As I can see, he sets TP and no SL. Do you know his rules?
Just an opinion. Based on research
  • #2,559
  • Dec 11, 2015 1:23am Dec 11, 2015 1:23am
Quoting stringfx
Hi Folks, Very interesting thread going on here. I am a big fan of strength meters and recently stumbled upon an indicator called ffx universal strength meter created by master coder Ferrufx. ( a big thanks to him and his generosity .) I have been using this meter for a couple of days now with standard setting provided by Ferrufx . He has coded it for various indicators and for every time frame available in mt4, however i am using only a few of them namely (price candles,macd,cci,adx and moving average) and am using this meter for m15,h1,h4...
Hi and thanks for sharing!
Now trying to use your way of TP setting.
Have you selected one or two USI-indicators for yourself? TOOOOO HARD to decide where more geen lines
Just an opinion. Based on research
  • #2,560
  • Dec 11, 2015 1:34am Dec 11, 2015 1:34am
Quoting since80808
{quote} Very nice looking! As I can see, he sets TP and no SL. Do you know his rules?
His tp is quite too small, and the lot is too big. Look carefully.
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