Hi Everyone, I have been running a popular thread in the Trade Journals forum ( same title) , and this might be a more suitable place for it. I do my own unique version of a strong weak analysis where I identify the strongest down to the weakest of the 8 major currencies, the idea being to match the strongest with the weakest and trade that pair. Combining this with good technical analysis and trading in the direction of the trend has lead me to consistent profits over the last 3 years. This is not day trading and in a good trend I can be in a trade for weeks even months. I post updates to my Strong/weak rankings every evening using the daily close numbers. I have also been posting a weekly market review video on YouTube that you might find helpful. I look at trading as a team sport and having many followers with their inputs and trade ideas benefits all of us, so your comments, questions and trade ideas are always welcome here. I will explain in more detail as this thread progresses, for now this is my current strong weak ranking based on yesterday's close. Aussie is strong and US dollar weak so being Long AUDUSD is the play,
My current strong weak ranking as of yesterday's close
Weekly look at my top SW trade, AUDUSD has been in a long term down trend but we do see a nice double bottom and we are starting to clear some overhead resistance. This is still a counter trend move and could still head lower, but if this is a bottom and beginning of a new trend it is one we want to be trading
Been trying to pick the AUDUSD low but keep getting stopped out! Luckily my stops are at commission cost.
Trading with tight stops is like death by a 1,000 cuts. When I enter a new trade I will put a red line on the chart, that is where I will manually exit if prices closes below on the daily chart. A stop loss order should be renamed guaranty loss. I normally only place stop orders above breakeven or to lock in profits
If you just must trade the EURUSD, then this is a pretty good place to go long, this pair has a pattern of pulling back 3 days before a big up candle. A daily close below 1.1200 would be reason to exit without to much damage