For many years I look at the market in a different way. Here I present:
To make clear GAP is here used in a different way as a currency strength change over a specified period.
Market: here it is used in term of THE 28 FX pairs, based on the main (8) Currencies.
The market has to be seen always in equilibrium. If one currency is bought some other(s) must be sold. This we could call here money flow. (I may use terms in a different way as they are used usually but there are no specified terms for its jet, maybe we can find out as the thread is growing)
We like here to analyze the market as a whole it is build of 8 currencies. A pair is a part of it so we have 8 currencies and 28 pairs. (Exotic pairs we do not include for now.)
The goal of the strategy is to find out in what sentiment the market is and what pair is good for trade and what pair it is not. As a trader, you should know if the market is trending or if it is consolidating or reversing, this will give you information how to trade. Do we look for continuation or do we look for pullback/reversal? This is THE very important question all of the time and this strategy will give you the answer! (You may be surprised that I put this terms on the whole market and not on a single pair, yes it is!). This we could call here market sentiment.
What would give a trader to know if a trend will continue, consolidate or reverse? Answers will be given here!
We also will include market cycles as it is related to open and close and time of news and week and some date in the month.
(Because my first language is not English it might not always be perfect.)
Terms I will be using in my threads may be different from usual.
CS=Currency Strength Line, GAP=(currency up or down/2 bars), sGAP=single GAP, dGAP=double GAP, iGAP=inside GAP, oGAP=outside GAP, iDir=inside Direction, oDir=outside Direction, MaMom=Market Momentum, MFib=Market Fibonacci level.
Now we will go to some examples for illustration. I prefer a graphical demonstration before numbers.
Definition GAP how it is used here:
Examples of a Currency GAP
example AUDJPY
take the currency strength of AUD and compare to x candles or minutes back to get the AUD GAP
take the currency strength of JPY and compare to x candles or minutes back to get the JPY GAP
IF AUD GAP is down and JPY GAP is up = sell AUDJPY
this is a double GAP !
After we have seen the double GAP we need also understand the simple GAP which is often used. It is the currency strength change between the base and the quote currency. A double GAP is always a simple GAP too but a simple GAP is not always a double GAP.
A simple GAP can be:
Currency A is weak and currency B is WEAKER
or currency A is flat and currency B is stronger
or currency A is little weak and B is stronger
and this are weak trades and vulnerable to pullbacks
A double GAP means 2 separated triggers so we look at quote and base currency separated:
Currency A is weak and currency B is strong
or currency A is strong and currency B is weak
This applies to every TF (analyses in multi-TF we will see later!).
To define a currency is weak or strong I look at the slope (angle) of at least the last 3 TF candles, better a clear path or a reversal at a higher Fibonacci market level. I will explain later the defined zones how have to look the slope. To be strong a up-slope from negative zones must be steeper than a up-slope within positive zones. Because if the currency is still in the negative zone it has still weak sentiment until it crosses the zero market line. To look only at numbers or arrows (like many indicators) give only a small picture or fraction of the information.
CStrength28 indicator will be also used with import data from the EA. (still in development please don't ask for it now)
CStrength28 is showing: 
Currency Strength double-GAP Trading 1 NEW VIDEO
When it all started in 2016. Excellent videos from buddy Lightheart :
video 1
video 2
video 3
As we are starting now in 2016 I will post new trades and setups for illustration. I am also busy creating an EA based on this strategy. So everyone is welcome to ask questions and give his ideas but please we do not need that many funny indicators, I don't use any of them.
Everybody is welcome to join here. This thread is more meant as a steady research how to improve your trading. It is meant as to find the right market conditions and the right time and pair with the hint how to trade. How you do finally manage your trades and what trading system you do use when you switch at the end to a chart will not (jet) be part of this thread but maybe later.
And some interesting and live trades from page 39
General rules for my thread:
Criticism of my method and/or myself, and any attempts to prove me wrong will be treated as a violation of Forum #1Rule: Respect the Fellow Trader. This is just the way I look at the markets, I believe we all need to be respected. My method uses specialized indicators and I will not allow distractions by people posting other indicators.
No predictions about future price movement. No private opinions about future price movement. No signal services.
I don't care about other strategies and indicators, there are many good ones, keep them on their own threads and don't pollute this one with any of them. This thread about the strategy called The Currency Strength and ONLY about sharing, mastering and improving The Currency Strength. It is not about anything else. Stick to THIS strategy and don't waste other people's time.
I do not accept promoting other products on my thread. NO talk of ANY EA, except possible ones that relate to trade management such as trailing stop loss etc.
People who take no interest in my method for whatever reasons are welcome to post on my thread as long as they show proper respect to the thread starter, other readers, respect the Forum rules, and respect the thread rules.
Do not use big bold colored fonts. It is obtrusive and screaming like capital letters in chat and not polite. They are restricted to important system rules or announcements by the thread owner.
Anybody who fails to follow the rules ABOVE will be added to my ignore list and cleaned up and prevented them from posting on this thread without warnings.
Some dGAP account, not the main one but good enough for a post. Pips are a little bit mixed because Gold and DAX was also traded with FX-pairs. Not very active traded in the beginning. Will be continued.
The 28pair Currency Strength double-GAP Momentum Strategy or short name double-GAP Strategy.
To make clear GAP is here used in a different way as a currency strength change over a specified period.
Market: here it is used in term of THE 28 FX pairs, based on the main (8) Currencies.
The market has to be seen always in equilibrium. If one currency is bought some other(s) must be sold. This we could call here money flow. (I may use terms in a different way as they are used usually but there are no specified terms for its jet, maybe we can find out as the thread is growing)
We like here to analyze the market as a whole it is build of 8 currencies. A pair is a part of it so we have 8 currencies and 28 pairs. (Exotic pairs we do not include for now.)
The goal of the strategy is to find out in what sentiment the market is and what pair is good for trade and what pair it is not. As a trader, you should know if the market is trending or if it is consolidating or reversing, this will give you information how to trade. Do we look for continuation or do we look for pullback/reversal? This is THE very important question all of the time and this strategy will give you the answer! (You may be surprised that I put this terms on the whole market and not on a single pair, yes it is!). This we could call here market sentiment.
What would give a trader to know if a trend will continue, consolidate or reverse? Answers will be given here!
We also will include market cycles as it is related to open and close and time of news and week and some date in the month.
(Because my first language is not English it might not always be perfect.)
Terms I will be using in my threads may be different from usual.
CS=Currency Strength Line, GAP=(currency up or down/2 bars), sGAP=single GAP, dGAP=double GAP, iGAP=inside GAP, oGAP=outside GAP, iDir=inside Direction, oDir=outside Direction, MaMom=Market Momentum, MFib=Market Fibonacci level.
Now we will go to some examples for illustration. I prefer a graphical demonstration before numbers.
Definition GAP how it is used here:
Examples of a Currency GAP
example AUDJPY
take the currency strength of AUD and compare to x candles or minutes back to get the AUD GAP
take the currency strength of JPY and compare to x candles or minutes back to get the JPY GAP
IF AUD GAP is down and JPY GAP is up = sell AUDJPY
this is a double GAP !
After we have seen the double GAP we need also understand the simple GAP which is often used. It is the currency strength change between the base and the quote currency. A double GAP is always a simple GAP too but a simple GAP is not always a double GAP.
A simple GAP can be:
Currency A is weak and currency B is WEAKER
or currency A is flat and currency B is stronger
or currency A is little weak and B is stronger
and this are weak trades and vulnerable to pullbacks
A double GAP means 2 separated triggers so we look at quote and base currency separated:
Currency A is weak and currency B is strong
or currency A is strong and currency B is weak
This applies to every TF (analyses in multi-TF we will see later!).
To define a currency is weak or strong I look at the slope (angle) of at least the last 3 TF candles, better a clear path or a reversal at a higher Fibonacci market level. I will explain later the defined zones how have to look the slope. To be strong a up-slope from negative zones must be steeper than a up-slope within positive zones. Because if the currency is still in the negative zone it has still weak sentiment until it crosses the zero market line. To look only at numbers or arrows (like many indicators) give only a small picture or fraction of the information.
CStrength28 indicator will be also used with import data from the EA. (still in development please don't ask for it now)
CStrength28 is showing:
- Currency strength of the 8 with special calculations.
- Market momentum: Trend, consolidation, and reversal
- Market Fibonacci Retracement Zones: these levels are used on currencies for potential reversal zones.
Currency Strength double-GAP Trading 1 NEW VIDEO
Inserted Video
Inserted Video
Inserted Video
When it all started in 2016. Excellent videos from buddy Lightheart :
video 1
video 2
video 3
You are always welcome to ask me questions about the strategy and the specialized indicator.
I can not answer PMs by FF as commercial members are restricted to 1 per day so please use my email:
EMAIL: [email protected]
As we are starting now in 2016 I will post new trades and setups for illustration. I am also busy creating an EA based on this strategy. So everyone is welcome to ask questions and give his ideas but please we do not need that many funny indicators, I don't use any of them.
Everybody is welcome to join here. This thread is more meant as a steady research how to improve your trading. It is meant as to find the right market conditions and the right time and pair with the hint how to trade. How you do finally manage your trades and what trading system you do use when you switch at the end to a chart will not (jet) be part of this thread but maybe later.
If you found this thread you do not need to read more then the first page.
The new thread with all rules is here:
The 28Pairs Currency Strength Trading System so continue reading here!
And some interesting and live trades from page 39
General rules for my thread:
Criticism of my method and/or myself, and any attempts to prove me wrong will be treated as a violation of Forum #1Rule: Respect the Fellow Trader. This is just the way I look at the markets, I believe we all need to be respected. My method uses specialized indicators and I will not allow distractions by people posting other indicators.
No predictions about future price movement. No private opinions about future price movement. No signal services.
I don't care about other strategies and indicators, there are many good ones, keep them on their own threads and don't pollute this one with any of them. This thread about the strategy called The Currency Strength and ONLY about sharing, mastering and improving The Currency Strength. It is not about anything else. Stick to THIS strategy and don't waste other people's time.
I do not accept promoting other products on my thread. NO talk of ANY EA, except possible ones that relate to trade management such as trailing stop loss etc.
People who take no interest in my method for whatever reasons are welcome to post on my thread as long as they show proper respect to the thread starter, other readers, respect the Forum rules, and respect the thread rules.
Do not use big bold colored fonts. It is obtrusive and screaming like capital letters in chat and not polite. They are restricted to important system rules or announcements by the thread owner.
Anybody who fails to follow the rules ABOVE will be added to my ignore list and cleaned up and prevented them from posting on this thread without warnings.
Some dGAP account, not the main one but good enough for a post. Pips are a little bit mixed because Gold and DAX was also traded with FX-pairs. Not very active traded in the beginning. Will be continued.
Scan all 28 Forex pairs with ONE chart... Currency Strength28 Indicators
