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The Forex Plumber
Over the years I developed many Indies & EA’s.
I recently reveiewd the ones that I consistantly use and keep developing.Tool #1:
I went to the Forex market and installed 7 pipes – one to each major currency.
I also put a meter on each pipe to monitor the pips flow amount (and direction +/-) to/from each currency from day start.
More advanced versions also monitors, per currency, pips flow amount per second/Minute/Hour – like a speedometer…
That’s one usefull tool, that’s telling you to what currency the pips are going to and from what currency they are getting out – absolute measurement without any relation to TF.( Top left on EURUSD chart)
Tool #2:
The other tool is for synthetic pair “Blind” trading.
Synthetic pair example: EURUSD/GBPUSD=EURGBP
You can “Blindly” trade any other such Triangulation currency pairs.
That tool displays the GBPUSD (Yellow) on top of the current EURUSD chart.
How to trade “Blindly”:
Whenever GBPUSD is above EURUSD and makes new HIGH while EURUSD doesn’t, it’s time to SELL EURGBP… and the opposite for BUY.That’s without even looking at the EURGBP chart… (I just put it for demonstration in the attachement).
This method is PERFECT for small pips profit as suggested in the “Compounding & 1 Pip” thread here.
G.Here is another example:
EURJPY/EURUSD=USDJPY
Real-time Chart EURJPY on EURUSD. EURJPY is inversed according to the above formula.
G.
Can you tell us more about Tool 1 please? How would one go about creating such a [flow meter] tool?
Thank you.
What's it all about? It's all about money.
Can you tell us more about Tool 1 please? How would one go about creating such a [flow meter] tool? Thank you.
Count the pips change for each currency pair, and add it to that CURRENCYtotal.
Example:
If EURUSD is UP by 5 pips than EURtotal=EURtotal+5 and USDtotal=USDtotal-5.
Repeat the above for all currency pairs.
To view the flow ROC (Rate of Change) – show only the total change from previous total (Adding +/- for relevant direction).
You can also enhance the above by converting pips to their $value in order to see real $$$ money flow.
G.
Count the pips change for each currency pair, and add it to that CURRENCYtotal. Example: If EURUSD is UP by 5 pips than EURtotal=EURtotal+5 and USDtotal=USDtotal-5. Repeat the above for all currency pairs. To view the flow ROC (Rate of Change) – show only the total change from previous total (Adding +/- for relevant direction). You can also enhance the above by converting pips to their $value in order to see real $$$ money flow. G.
Thanks for sharing this G
Sorry for asking these beginner questions below G :*) About pips change (difference), if we trade on TF M1, do we calculate the difference in every 1 minute (ex. at open of new candle) or in every tick ?*) And how to convert pips to $value to know the money flow ?
It doesn’t matter on which TF you update, since M5 is accumulation of 5 M1.
The result will be the same, rhe only difference will be the rate of data updates.
Pip value depends on the currency pair and you can find that in marketinfo.
That info is only for reference value in order to make all pips translate to comon denominator in the currency total.G.
quoting G
“Whenever GBPUSD is above EURUSD and makes new HIGH while EURUSD doesn’t, it’s time to SELL EURGBP… and the opposite for BUY.”
see attached
first screen shot is GBPUSD above EURUSD (with new high only on chart)
second screen shot is EURGBP
Pip
skype : pipatronic
Tool #2:
Thanks for sharing GG! The #2 is very interesting!
I have done a lot of work with triangulation but your approach at triangulation of comparing ROC instead of pure price actually might be way superior. I’m going to try and create an indicator to show ROC based triangulation differences and maybe there is an edge we can exploit!
Thanks again!
Focus, Patience, Determination & Order in chaos
correlation chart if it helps anyone attached
I believe I uploaded this one ages ago in @FF…
G.
Thanks for sharing GG, but how do you normalize overlying chart (GBPUSD in your example) to overlayed chart prices (EURUSD) ?
Vlan
Thanks for sharing GG, but how do you normalize overlying chart (GBPUSD in your example) to overlayed chart prices (EURUSD) ? Vlan
By scaling:
“symbol_name” is the overlay currency pair.
double max_scale=iClose(symbol_name,0,1);
double min_scale=iClose(symbol_name,0,1);
double max_scale2=Close[1];
double min_scale2=Close[1];
while(k>=0)
{if (max_scale<iClose(symbol_name,0,k)) max_scale=iClose(symbol_name,0,k);
if (min_scale>iClose(symbol_name,0,k)) min_scale=iClose(symbol_name,0,k);
if (max_scale2<Close[k])max_scale2=Close[k];
if (min_scale2>Close[k])min_scale2=Close[k];k–;
}G.
Ok, thanks. I have some indicators that do it this way also, I just thought you had a different way.
The reason I was asking is the inconsistency of ploting an overlayed chart in this way.
Depending on the chart area size and position of local maximum and minimum prices of the two currencies, the relative position of these two charts can change with a single window resizing.How do you deal with this since one of your entry rule says that ‘Whenever GBPUSD is above EURUSD…’?
Thanks
VlanOk, thanks. I have some indicators that do it this way also, I just thought you had a different way. The reason I was asking is the inconsistency of ploting an overlayed chart in this way. Depending on the chart area size and position of local maximum and minimum prices of the two currencies, the relative position of these two charts can change with a single window resizing. How do you deal with this since one of your entry rule says that ‘Whenever GBPUSD is above EURUSD…’? Thanks Vlan
I’m not sure that I understood you, but I’m limiting the display to the last xxx bars. In my case the overlay is limited to last 300 bars.
I have no problem of displaying 4 different overlays on a single chart.
This is usually done to catch and pinpoint single currency movement.
G.
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A screenshot should do better explanation than me :)
In attached images, the green line is the EU and the yellow is the overlying GU.
Both screenshots were taken seconds apart, yet the yellow GU line is positioned very differently.
While in the first picture, the two lines cross several times today, in the second picture they don’t.
The reason for this is that I widened my chart window by few bars, (note the vertical line on the left side), causing new minimum GU price to appear and thus pushing the whole GU chart up.
V.
A screenshot should do better explanation than me :) In attached images, the green line is the EU and the yellow is the overlying GU. Both screenshots were taken seconds apart, yet the yellow GU line is positioned very differently. While in the first picture, the two lines cross several times today, in the second picture they don’t. The reason for this is that I widened my chart window by few bars, (note the vertical line on the left side), causing new minimum GU price to appear and thus pushing the whole GU chart up. V.
Again, I fail to see the issue…
The “Crossing” means nothing, only the relative movement of one pair in relation to the other.
Your signal, in the EURUSD & GBPUSD overlay case, is when GBPUSD is going UP/DOWN while the EURUSD stays flat or going in the opposite direction.
The logic behind trading the overlay is to neutralize the USD and visualy “see” EUR going up and GBP going down (or vice versa) in order to trade the triangulation outcome of those pairs – which is the EURGBP. EURUSD going UP and GBPUSD going DOWN == BUY EURGBP (and vice versa).
Same goes to any other triangulation between currency pairs. The beauty of this that it’s predictive, blind trading, and never fails… It doesn’t guarranty gazilion pips, but it does guarranty a move on the resulting triangular currency pair.
Another, more complicated method is to put several overlays on the same chart, such as AUDUSD, NZDUSD, GBPUSD on top of EURUSD chart (note that USD, in this sample case, is on the right side of all pairs – making it “common denominator”).
Whenever ALL are pointing UP – Sell USD across the whole Forex market (and vice versa). That’s a STRONG sign of USD weakning.
G.
Thanks for the explanation. Now I understand it better. So basically it is not important which pair is above which one. Only thing that matters is that they’re not going the same direction.
V.
Anyone one else having a play with this – great idea – have played with triangulation before but puts a new slant on it, I am trying to put an indi together but have to rely on another for the programming as my skills in programming are a bit like the dinosaurs – extinct – will update as progress is made with results – be patient.
Pip
skype : pipatronic
anyone tried a similar idea with gold, here is a link and attached indi
http://www.trade2win.com/boards/commodities-money-markets/157250-fxcorrelator_goldmeter-11.html
credit to NVP
skype : pipatronic
anyone tried a similar idea with gold, here is a link and attached indi http://www.trade2win.com/boards/commodities-money-markets/157250-fxcorrelator_goldmeter-11.html credit to NVP
Send my regards to NVP, a good friend of mine.
It’s a good indicator, although I don’t like the use of MA’s as a leading indicator.
It’s better to rely on other means when building indicators.
G.
Regards will be passed on though I do not really know NVP though an interesting gentleman.
Yes have been wondering about the MA part, I did wonder if it is possible to use OBV instead of MA – very frustrating with limited programming skills especially knowing what is possible and what is not but that is sometimes where new ideas come from.
From my limited time playing with the market price, currency strength, volume and SR levels (extremes) seem to be the most important ingredients – oh and also pivot points (though that seems to be a self fulfilling prophecy).Thank you for your thoughts
Pip
skype : pipatronic
Ok thoughts on CS type indicators inc goldmeter
1 LWMA and divided up by the number of components – bad
As above but each then divided up by its market share (US dollar taking up the greatest share)
How about basing it on % change then aggregating or % ROC ?
Anyone else able to add ?
Apologies if it strays off topic a bit and what I have written appears to be complete twaddle
Pip
skype : pipatronic
Ok thoughts on CS type indicators inc goldmeter
1 LWMA and divided up by the number of components – bad
As above but each then divided up by its market share (US dollar taking up the greatest share)
How about basing it on % change then aggregating or % ROC ?
Anyone else able to add ?
Apologies if it strays off topic a bit and what I have written appears to be complete twaddle Pip
GOOD Currency-Strength indie should include a factor for the specific currency share in the market.
Also, it should NOT include synthetic pairs in it’s calculation (reasoning explained somewhere else in this forum).
MA’s (if used) should be replaced by an adaptive means (Ehlers and others).
Indicator should include DYNAMIC Overbought/Oversold areas.
Trading decision should be taken based on several TF’s, preferably equaly spaced.
Trading decision based on CS should be supported by either momentum or volume indies.
Based on the above you can create a CS ROC, which will give you a better pair selection.
G.
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