Currency score Wk 43 and review Hybrid Grid Strategy Wk 42&43 / 19-10-2014

Information provided today: I will provide here the currency score and later on this day I will update this thread with the review on the Hybrid Grid strategy.

In this article I will provide my analysis and the FxTaTrader Currency Scrore chart which is my view on the 8 major currencies based on the Technical analysis charts using the MACD and Ichimoku indacator on 4 time frames, the monthly, weekly, daily and 4 hours. See for full details the page “Currency score explained” on my blog FxTaTrader.com.

The FxTaTrader Forex Currency Score chart is meaningful data for my FxTaTrader Hybrid Grid strategy. Besides this chart I also provide my weekly analysis on my strategy and the Forex ranking and rating list which is available 3 times a week on this blog.


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[li]The USD, CHF, GBP are currently the stronger currencies. The AUD, CAD and EUR are the weaker currencies. The best pairs to look at are a combination of those currencies.[/li][li]Currencies with a score of 4 and 5, meaning the JPY and the NZD are difficult to trade because they are in the middle of the range. However, the NZD is weak from a longer term perspective, see my previous article Forex Currency Score Wk 42. This currency offers opportunities to go short in the current pull back.[/li][li]The CHF has a high correlation with the EUR so it does not have the preference to go long with unless going long against the EUR. Conclusion for going long is that for the coming week it seems best to go long with the USD and the GBP and on the CHF with the EUR as the counterpart.[/li][li]For the weaker currencies the AUD seems to have a temporary dip according to the currency score chart of this currency and may recover soon. For more details see my previous article Forex Currency Score Wk 42. Conclusion is that for the coming week it seems best to go short with the NZD, EUR and the CAD.[/li][li]The best combinations for the coming week also according to the Forex Ranking and Rating list, see my previous post of this week, are the USD/CAD, GBP/CAD, EUR/CHF and the EUR/GBP, These pairs are having a good ranking in the ranking & rating list of resp. 2, 6, 10 and 11.[/li][li]There are some rules for taking positions according to the FxTaTrader Hybrid Grid Strategy. The strategy can open multiple positions of a currency pair but each currency may only be present once in the pairs chosen for trading. It means that not all the possible positions of coming week can be opened. For more information see the page “FxTaTrader Hybrid Grid Strategy” on my blog.[/li][li]Last week (pending) orders were placed for the NZD/USD and profit was made on 1 position. More on this in my strategy article later this day.[/li][/ul]
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Stronger currencies


In the previous week we looked into the weaker currencies from a longer term perspective using the data of the Currency Score. In this article the stronger currencies will be handled. This way there is a clear view on the best combinations to trade for the coming period. Unless these currencies go complete to the other side of the range they remain interesting. As can be seen in the chart above the dips are of a short nature with fast recovery. This makes clear on which side they are, same counts for the weaker currencies discussed last week.

The stronger currencies are the USD and the GBP. In the last 3 months only the GBP dipped once and recovered fast. When looking at a period of 6 months also the USD dipped. In that period the USD was not yet one of the stronger currencies. The currencies had a score of 6 or higher without the dips which is a strong performance. At the moment these 2 currencies have the preference for going long.

This analysis makes it possible to look at currencies from a longer term perspective and provides the inner-strength which cannot always be seen clearly when looking at different charts of a currency and its counterparts. It is an additional analysis that can be used besides the Technical analysis charts and the Forex Ranking and Rating list and it may also diminish risk. Next week I will go into details on the average performing currencies from a longer term perspective.
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Later on this day I will provide the weekly review on my FxTaTrader Hybrid Grid strategy. Good luck to all of you in your trading the coming week.

Although the explanation may seem simple and clear there is always risk involved. I added a disclaimer to my blog for this purpose. If you like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article.

In this article I will provide my view on the NZD/USD and the EUR/CHF. These are the pairs that I am currently interested in or was interested in last week for trading with the Hybrid Grid strategy.

This articles will provide:

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[li]The weekly currency chart for the interesting pairs.[/li][li]The daily(timing) chart for the interesting pairs.[/li][li]Possible positions for the coming week and positions taken.[/li][li]According to the “Currency score” and “Ranking & Rating list” the USD/CAD is the best pair to trade followed by the GBP/CAD, EUR/CHF and EUR/GBP. The pairs comply to the strategy rules for the FxTaTrader Hybrid Grid strategy.[/li][li]Last week (pending) orders were placed for the NZD/USD and profit was made on 1 position.[/li][/ul]
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[B]Open/pending positions of last week

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The situation compared to last weeks has not changed very much for going short and this pair remains interesting for the Hybrid Grid strategy. The pair had a significant pull back and this offers opportunities.

The rank in the Ranking and Rating is not in the Top 10 and this is mainly because price is above the Ichimoku cloud in the 4H chart. This is seen as a temporary pull back and it is being confirmed by other reasons that makes this pair still interesting for going short. More information can be found in the previous article Forex Currency Score Wk 43 and the Technical analysis charts which will be looked into later in this article. Last week (pending) orders were placed for the NZD/USD and profit was made on 1 position.

Ranking and rating list Week 43
Rank: 24
Rating: =

Weekly Currency score: Down

Based on the currency score the pair looks interesting in the last 3 months. The USD showed no dips in that period. The NZD had a significant pull back last weeks and this offers opportunities because this currency looks weak from a longer term perspective. Based only on this information the pair looks interesting for going short.

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Monthly chart: Neutral

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[li]On the monthly(context) chart the indicators are looking weak for going long.[/li][li]The Ichimoku is neutral. The pair is below the 2 MA’s but in the Bullish Ichimoku cloud and the Chikou-Span is above the cloud.[/li][li]The MACD is in positive area but showing weakness by making lower tops and the histogram is also showing weakness.[/li][li]The Parabolic SAR is short but not showing the preferred pattern of lower stop loss on opening of new long and short positions.[/li][li]Since the monthly chart is used to get the context where that pair is in for the long term the indicators are looking fine because they are showing weakness in an up trend.[/li][/ul]

Weekly chart: Down

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[li]On the weekly(decision) chart the indicators are looking strong for going short.[/li][li]The Ichimoku is meeting all the conditions.[/li][li]The MACD is in negative territory and showing continuation of this downtrend.[/li][li]The Parabolic SAR is going short but not showing the preferred pattern of lower stop loss on opening of new long and short positions. However the pair made a new recent low so the preferred pattern is being developed.[/li][/ul]

Daily chart: Down

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[li]On the daily(timing) chart the indicators are looking strong for going short.[/li][li]The Ichimoku is meeting all the conditions.[/li][li]The MACD is in negative territory. The histogram is showing some weakness in the down trend and price may consolidate in short term to pick up the downtrend again after that.[/li][li]The Parabolic SAR is not going short but showing the preferred pattern of lower stop loss on opening of new long and short positions.[/li][/ul]

Total outlook: Down


NZD/USD Daily chart
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Possible positions for coming week.

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EUR/CHF

This pair will be discussed briefly in this article. The situation has improved compared to last week for taking short positions. The pair had a pull back a week ago but reversed last week making the daily chart improving significant. One of the more favorable reasons for taking positions on this pair is that the correlation between these 2 currencies have no impact when there is a clear difference in strength. This is not the case when trading the CHF with another currency than the EUR. It may then be dragged down because of the correlation with the EUR. The pair is interesting for going short and for the FxTaTrader Hybrid Grid Strategy.

Ranking and rating list Week 43

Rank: 10
Rating: –

Total outlook: Down
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Although the explanation may seem simple and clear there is always risk involved. I added a disclaimer to my blog for this purpose. If you like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week and don’t forget to check my weekly Forex “Ranking and Rating list” and the “Currency Score”.