Currency strength and weakness

Trading Discussion Currencies
1

How do you identify currency strength and weakness without using indicators?

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Follow the price action

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Helloooo! :blush: Definitely agree with Steve. :slight_smile: You have to watch the price action to determine this. If you’re interested, there are also a few very interesting threads here that talks about this! :blush:

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Its a good approach to verify which are the strongest and weakest currencies before you take a position. For a long time now I have been using the location of the daily closing price against the 50EMA to tell me whether a currency is bullish or bearish. So a price above the 50 is bullish for the base currency and bearish for the counter currency. Looking at the 28 top pairs you can get a score of as bullish as 7-0 or as bearish as 0-7 for each of the 8 major currencies. Obviously I prefer to be long the 7-0 currency against the 0-7 currency. Its also a good question to ask yourself, why you would want to be long on this or that currency when all the pairs in which it is seen show it as bearish.

My results are quickly obtained and objective because they’re visual and always tally closely with Dennis’s calculation approach.

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5

thanks for your nice post with good information.

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6

I just go to https://marketmilk.babypips.com/ lol

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If not.marketmilk on baby pips ,Finviz.com is constantly updating 24 hours ,all the main currencies

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8

There’s a few good apps for visualizations. Search the app store

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9

yea thanks for your information.

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wow nice .thank you

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nice strategy too.

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yes its well simplified. Thanks

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like which one?

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The only question is why EMA can indicate bullish pressure? Isn’t just a function of past price behavior? Or an assumption here is that other traders watch at the EMA perceive it as bullish thus creating self-fulfilling effect?

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MA’s summarise past price behaviour and when price moves in a trend it tends to continue moving in the same direction as the trend. Its not necessary to use a MA to identify a trend but they are a useful base-line with which to confirm a trend is in existence and further to help gauge one trend against others.

I don’t have any faith in the theory (though its common) that popular MA’s drive price - for me its the other way round - MA’s reflect the market’s decisions.

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16

Keep a track of the news, and follow price indicators. You can also follow candlestick patterns.

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