Dec 10 Daily Currency Strength

FX:EURUSD   Euro / U.S. Dollar
809 15 21
One of the biggest reasons 98 % of traders lose money in forex is because they don’t know what currencies are strong respective weak. Knowing the strength of a currency will dramaticly help you on the way to become a world class trader, you will never look at the market the same once you have fully understood the importance of currency strength.
Hi Carl - just wondering whether the same can be done to gauge Weekly currency strength if we were trading only daily timeframe?
Hi Casey, how are you?
Not sure if i understand your question. The same method can be applied to weekly. If you are trading the daily charts, you want to look at the daily currency strength. If you are trading weekly charts, you wan to look at the weekly currency strength.
Casey_Yeo Tradinggrouptw
I'm fine. Hope you are too. Thanks for sharing your knowledge here.
I'm getting a bit confused here. I always thought you look at daily currency strength, then drill down to H4 or H1 for setups to trade in line with the currency strength. So I'm just thinking whether I should be looking at weekly currency strength if I'm just trading setups on daily chart. Hope I'm clearer now...
No, I look at Daily currency strength and i look for setups on the daily TF. I only go down in TF when market has pulled back to my expected entry to see if legs are visible and to determine where to enter more precisely. If you are trading the weekly charts, you stick to the weekly TF with weekly currency strength, going lower down in TF is only for precise entry, nothing else. I hope I answered you question :)
Casey_Yeo Tradinggrouptw
Thanks Carl. I understand now. Will explore to see if this tool is compatible with how I'm trading.
The great thing with currency strength is that it is universal. It simply determines the best pairs to trade, and you can apply your strategy accordingly :)
+1 Reply
IvanLabrie Casey_Yeo
I've been taking daily setups, and fine tuning using 4h (using Tim West's MTPC indicator that overlays the daily range over 4h bars).
Using Carl's method as a filter for setups since Monday, I'm up 110% in my whole FX account. :)
This stuff works ;)
+2 Reply
Here is a checklist on how to trade PRICE ACTION with daily currency strength.

1) Check market strength.

2) Look for fresh moves (V Formations).

3) Identify structure priority (Legs).

4) Look for ideal S/R.

5) Estimate R:R.

6) Watch only the view chart pullback until or near the S/R (and leave a wick/tail).

7) Go down one timeframe to see if the legs are visible.

8) Enter trade accordingly to plan of action.

9) Keep sister markets ready.

10) Watch the group of the moving currency to understand areas of halt.

11) Update journal with target information.
+2 Reply
IvanLabrie Tradinggrouptw
Thanks, nice points! Also the journal idea is a must imho.
Hi Carl
Thank you very much for this post. Please excuse my ignorance but is this an automated Daily Currency Strength indicator. I would like to integrate it with my trading strategy but not sure how to derive the indicator? Thanks for sharing. Kind regards
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