safv6

Trading the STRONG against the weak! (currency strength calc)

Inspired by an indicator I found on stevehopwoodforex.com and the endless possibilities of tradingview.com I came up with this currency strength visualisation concept.

*Please hit the zoom-out button once*
(or more if you're feeling wild)

This may look like a mess, but the last few "bars" on the chart are holding some useful information!
I'm sure I'm not the first one on here to think of this. My apologies for the messy work though, because the chart gets scrambled when you move it, the text moves all over the place and the calculations are probably completely wrong, but I'm sure you get what I'm trying to do here.
Trading currencies that are gaining strength against currencies that are losing strength is obviously a good way to go, so this is an attempt to illustrate the increase/decrease in strength of a currency compared to 7 others, to help filter out those bad trades and get us into good ones for many pips of profit.

Now check out the chart. How often a year does a currency significantly change direction? Who out there was/is still shoring the USD, AUD and CAD and buying the EUR, JPY and CHF on the hourly, 4-hourly and daily TF's right now?

I know I haven't. I have been and will be only buying CAD, AUD, USD and now also GBP and NZD and I will be only selling EUR, JPY and CHF until the direction significantly changes. Which could of course happen at any time for all I know and when it does we look to trade that currency only the other way and count the money we made on the long run we just had!

The strengthening and weakening of a currency as you can see can last for months. Realising this changed my trading forever.

My interpretation of the chart: Currencies that are significantly sloping away from eachother are candidates for trend trading. Currencies that run paralel to eachother are ranging and can be traded from the top of a band or channel to the bottom with confidence.

I hope this makes sense.
Thoughts anyone?

Cheers


CHF = Aqua Blue (light)
EUR = Turqoise (darker)
GBP = Blue (dark)
AUD = Orange
NZD = Gray
CAD = Maroon Red
USD = Red
JPY = Yellow
I have using similar android based software called currency strength index.
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what..download?
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You can get two styles of currency strength chart I developed from http://www.forexgrail.com which is a starter type of currency index using the DDE from MT4 as the data source. The second piece of Windows software is called the AccuStrength. Website http://www.accustrength.com The accustrength has its own built-in data from sources most small traders could never afford on this own. Yes, they cost money, but they will save you a lot of time and energy trying to reinvent the wheel. This is a money-laden business so investing in your tools is perfectly in line with speculation. It is not the end all and be all, but a well designed and properly calibrated currency strength indicator will get you in earlier and out faster. The FX4Caster is a one time purchase and the AccuStrength is a subscription model because of the data included with it.
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Great stuff. It's in my favourites bookmarks. Only if there is a way of avoiding to scroll down to check which one is which because by the time I do it, I forget what I was about to check ;-)
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@memyself, has this currency strength chart been updated recently , im not sure the best one to use forestor had posted new inputs

what one is the best cheers ally
+1 Reply
dear safv6 could you please explain more your idea; i know i should buy the strong on the weak but how to use the calculator to do that.regards
+2 Reply
Would the idea be that you would trade an appropriate currency pair? For example, if the USD is showing strong and the JPY is showing weak, you would trade the USD/JPY pair, going long? Or if CAD is strong and USD is weak, you trade the USD/CAD, going short?
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Where can I get the script for trading view? Can you send me an email as well
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Where's the zoom out button?
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Interesting work
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