Hi all,
I wonder if anyone will read this…
I have been trading a little over a year, with mixed results but overall mildly profitable with mild terms of drawdown, I have winning strategies that are reliable, however, my biggest enemy in trading is myself. I think maybe a lot of people may understand this.
Anyway - regardless of strategy, timeframe, or whatever, it is ALWAYS greatly beneficial to look at a single chart, and see which currencies are moving in which direction.
To do this I have found a way to look at all my currencies in a single chart, on whatever timeframe I happen to be trading on at the time.
To do this, I go to dailyfx and use their TradingView charts. They are very nice to use. As a standard to compare everything to - I use the Yen, a big reason is that all Yen pairs are XXX/JPY, so I don’t have to take the inverse in my head, also, the JPY is a large number compared to the others, so it makes a reasonable fraction to look at… although - as you will see, we are looking at percent change in price rather than absolute price, so this may be irrelevant, but the currency ordering is pretty key.
So follow me here - I open the USD/JPY chart… http://www.dailyfx.com/usd-jpy
I then add the following (look for the little balanced weights icon that says compare or add symbol):
EUR/JPY, GBP/JPY, AUD/JPY, NZD/JPY, CAD/JPY. Once you add the symbols, the y-axis becomes a percent change rather than a price, and I am pretty sure that each pair is plotted with its own relative percent change.
You can plot it with any desired timeframe, with any desired time range. It is very nice, and enables me to pair weak and strong currencies for my setups, regardless of the strategy I am using - this is valuable information. Support and resistance lines are NOT useful, as the relative percent change in price does not correlate exactly with the absolute price of the pair in question.
So if I am trading a news breakout, a London open breakout, an Asian session range, or whatever, this is always on my screen and closely watched. It is always helpful.
I am sharing this in the case that it helps others, or in the case that people have feedback, or in the case that I have this all wrong - but I think I have it right.
Anyway, here’s a pic from the week open on Oct 18, 2015, 15 minute candles, to the time that I am writing this (19:30 in Colorado) - the sharp NZD selloff that happened today is evident - I hope you can see the pic ok. Cheers, and happy, successful trading to you all. TommyO
