Hey folks…thanks for the interest.
This should clear things up a bit. I will give you a walk through of how I come up with these numbers. Remember, this is what I am doing…finding out how much one complete currency is up/down against all of the other complete currencies. We have 8 currencies here. Since there are 8 of them, then one of them will be against the other 7, right? That’s 7 total pairs. So, I just add those 7 pairs up, and that will be the total for that one currency.
Ok. Here we go.
The first thing I do (when the time comes), is hit the download button. Look.
Top right, just below the “New Watchlist” button. That imports the complete list that I have here to an excel spreadsheet. This list is in a specific order. And I really only pay attention to the “%Chg” column. What I do, then, is copy and paste chunks of this data and transfer over it to my very own already set up big excel sheet.
See, you will see that my list and the one in Barchart is exactly the same. For instance, EUR/USD is the first pair. GBP/USD is the second pair. And so on. But, notice how the first currency is the USD. Well, remember I said that each currency will have 7 pairs? Well, the total for each pair will be in the last row going across. And highlighted, in their respected colors. Now look closely up there. Above the green part, above like ‘Day 1, Day 2’. That shows the formula already in place, that will make the calculation. (I’m showing you what my next move will be. Which will be on Day 17th of December) My cursor highlighted ‘Day 17’, and will be for the USD total (grey bar going across). And once the numbers get in there (there is none yet, right) then it will add up all of the USD pairs. That will tell me how much the USD will be against all of the others. Look closely at the formula. The first one is -CI12. That corresponds to the EUR/USD. But, since the USD is the quote currency then it has to be the negative, right? That’s why it starts out as a negative. Because I want to know about the USD, not the EUR. Now, in the formula, when you move on down to the USD/CHF the USD is the base currency, so that will be added straight up. No inversion necessary.
Anyway, trust me, what ends up going into that colored row will be the total % of how much the USD has traveled aggregately against all of the other ones combined.
This one I highlighted the EUR daily total box. Look at the formula. First off, since every EUR pair will be the EUR as the base currency, I don’t have to have any -'s, or inversions to the calculation, right? That will simply add up the EUR/USD (CI 12, and then the group of EUR’s all together there, 20 - 25 rows).
Here will be the GBP total. Look at the formula. All it’s doing is adding up the GBP/USD above, then the inversion of the EUR/GBP (since it’s the quote currency), and then the straight up group of 5 GBP’s. That will give me a total of how the GBP did against all of the others. Get it?
Same thing here with the CHF. If you look up at the formula, that will tell you what excel is adding up. Which will be all of the above CHF’s pairs.
That right there is the JPY. You should know that the JPY is the quote currency in all of their pairs. So look, at the formula, there’s 7 things it’s going to add up, but also in the inversion state. The all have a minus of a figure. See, that will tell me exactly what they did.
Now, if you want to know what’s below that, that table is simply the daily end totals. Nothing else. In order. Now, on my excel screen, just below that is where I keep that eye sore of a session by session table. I mean, it’s the same thing as that daily table, but just keeping track of the monthly running totals at the end of each session. That’s all.
This is zoomed out, on my screen. But, that’s the month running so far. That daily total running part is not correlated to the part below, column wise. I sometimes have to physically move the ‘session’ part over so that I’m not traveling such a far distance as the month progresses.
Let’s see. Again. That black row going across, towards the bottom, is something I explained in an earlier post. Basically, it just tells me about the flow, of that particular session. Whether the complete aggregate went with the flow, or against the flow. And then right underneath that, is telling me who was the most dominant currency during that session (positive number, and is expressed in a %). And under that is the currency that was the weakest during that session (negative figure, which also is the %). Color coordinated. But then, at the end of the day, which is the 2 most bottom boxs there, that tells me who took the day in total. First the strongest, and it’s %, and the weakest, it’s %.
See, it’s information, to know who took that particular day. Strongest. Weakest. But, I’m mostly concerned with the monthly running totals also. See, how there’s 2 perspectives there? Oh, and also, more importantly, how they ALL are relating to each other. You know, I’ve been thinking, I just might start calling these, instead of strong vs. the weak, to most in demand, to least in demand. Cause in actuality, that’s what’s really meant by the numbers.
Remember when I said that it’s not the numbers of what’s most important, it’s what they mean, that’s most important. Well, I feel that the greater the %, the more in demand it is. Right? And likewise the opposite.
It really is all about relationships. And since this whole trading security is really 2 securities head to head, as one security, I think this is the best way to go about it. See, we’re not trading just one security like Oil. Or and interest rate. Or a company. Even in the futures market, (or an ETF) the currencies are paired to the USD. If you see the AUD futures. Well, all that really is, is the AUD/USD. See? It’s paired.
Bottom line is that trading currencies means taking 2 major securities into account. And well, all this nonsense that I’m doing is just simply breaking down them into individual securities. Looking at them as a whole. Comparing them. Then…go from there. Like whatever method of trading you want to do.
Ok. I’ll be back later on today. In a couple hours. Will have way much more time to explain some more.