Awesome! I love where we are headed! I will also work on a new indicator applying these principles and see what I can come up with. Would be really interesting to see what we all come up with and maybe make a super indicator combining the strengths from it all.

…Try per session (London, London + NY, NY, Asian) and keep all 4 visible. You’ll see interesting, tradable, behaviour.

G.

That’s EXACTLY what I’m doing in my “Spaghetti” currency strength. indie…

For maximum effectiveness avoid using “digital” view of strength and use good old lines, to effectivly view current direction. Reason: if the currency is “strong” and falling and a weak currency is rising – you might want to take the counter-trend position. with…[Read more]

If you, MTH and me are swimming in the ocean with no land in sight – you can tell if you are getting closer or away from MTH and me, but you don’t know if we are getting nearer or away from the shore or our target.

That is relative or correlated distance between us, and it’s hard to measure because we are all in motion relative to one…[Read more]

If you, MTH and me are swimming in the ocean with no land in sight – you can tell if you are getting closer or away from MTH and me, but you don’t know if we are getting nearer or away from the shore or our target.

That is relative or correlated distance between us, and it’s hard to measure because we are all in motion relative to one…[Read more]

Very impressive results my friend. And sorry for the delay in my replies everybody!

I read through the currency strength related discussion and it’s good! We need to talk more and more about this. Let’s talk a bit about what currency strength is first, shall we?
In my opinion, currency strength is NOT a currency index. It’s very easy to get the…[Read more]

China might be the biggest economy (or on its way there) but not in the Forex market.

USD is the “reserve” currency for central banks and all commodities relate to it, such as Gold, Oil, Metals, Grains etc. They are all bought and sold in USD.

That’s why CNY takes so little part in Forex.

There is some “movement” in this situation. China,…[Read more]

No, that’s not the case.

You should, or can, trade any currency that is going up against any other currency that is going down – and the same for opposite direction.

I gave the example of the USD, EUR & JPY to make the connection to the “market share”. Those 3 currencies make more than 70% of the total volume of the market, and if you find such…[Read more]

Smallcat,

Here is my Std. Currency strength (Spaghetti).

Blue – EUR

Green = USD

Yellow = JPY

vertical lines mark opposite direction of 2 currencies against the third one – denoting massive move.

In those situations you can short the EUR against any other currency, almost blindly with almost 0 or minimal DD.

G.

Smallcat,

Here is my Std. Currency strength (Spaghetti).

Blue – EUR

Green = USD

Yellow = JPY

vertical lines mark opposite direction of 2 currencies against the third one – denoting massive move.

G.

Smallcat,

Here is my Std. Currency strength (Spaghetti).

Blue – EUR

Green = USD

Yellow = JPY

vertical lines mark opposite direction of 2 currencies against the third one – denoting massive move.

No, I meant what I wrote….

Two of them in one direction and the third one in opposite direction.

Example:

If USD & JPY going UP and EUR going DOWN – a lot of pips await for you in:

EURUSD – Short

EURJPY – Short

G.

No, I meant what I wrote….

Two of them in one direction and the third one in opposite direction.

If USD & JPY going UP and EUR going DOWN – a lot of pips await for you in:

EURUSD – Short

EURJPY – Short

G.

Use “Market share” as a factor.

Example (factors from your attached table):

USD = USD*0.435

EUR = EUR*0.165

JPY = JPY*0.115

…..

….

Yet another “trick of the trade”:

Pay VERY close attention to USD, EUR, JPY when two of them are in one direction and the other in opposite. This is going to be a MAJOR move !!

Why? Because it’s 70% of…[Read more]

1. Market Share: You can find “market share” here (look for table titled “Most traded currencies by value”): http://en.wikipedia.org/wiki/Foreign_exchange_market

Note that you have to divide the number by 2, since it totals 200%.

2. Momentum: I keep track with my “standard” Currencies indie AND “momentum” calculated one. The first is a simple…[Read more]

Currency Strength is one of the most important indicators in trading.

It has a “predictive” nature if combined with momentum and volume.

A common mistake in creatring such indie is to calculate ALL 28 currency pairs. This add “noise” to the indie end result.

Example: EURUSD & GBPUSD reflects the accurate price of EURGBP synthetic pair, so why…[Read more]

Currency Strength is one of the most important indicators in trading.

It has a “predictive” nature if combined with momentum and volume.

A common mistake is creatring such indie is to calculate ALL 28 currency pairs. This add “noise” to the indie end result.

Example: EURUSD & GBPUSD reflects the accurate price of EURGBP synthetic pair, so why…[Read more]

I didn’t present any system.

Please point me in the direction of my “failed threads at FF”…

If you are refering to the “…Pissing Dog” thread @FF – we just found one…

G.

I didn’t present any system.

Please point me in the direction of my “failed threads at FF”…

G.