Just wanted to "give back a little". You've all seen Currency Meters
and most of us FOREX traders have a strong intuitive idea that
these things are somehow "fundamental". Well, I agree, BUT.....
Most "currency meters" are just "toys" and can't be used to get
very meaningful trading signals.
So, I designed my facility to keep a history, and to have the following
characteristics which I think makes it much more useful as
a basis for Trading Signals. The raw data doesn't give trading signals
but the trained eye can get a lot of information from it.
In a nutshell, the facility doesn't use a reference of only the previous day;
rather, it has a moving window of the last 2 weeks. For me, this
is important so that we can compare today's values with yesterday's
and so on, looking at Trending over time, and the values will
be more comparable and stable.
Prior to major "events" in the market, such as London Open, we are
able to see "setups" where Currencies themselves are "distorted"
or "hooked" usually in preparation for an opposite direction move
when London Opens, etc. So we have this basic 5 minute sampling
time so that these movements can be picked out an hour or so
prior to the event.
Being able to see where each of the major 8 Currencies are moving
over time, relative to each other, over both Short Term and longer
term periods, such as a week or a couple of weeks... This can
provide insights for Longer Term traders or investors as to which
direction, and which Currency Pairs offer higher probabilities
of profit, in a particular direction Long/Short.
Now, none of this eliminates the need to examine closely your
specific Currency Pair candidate, and to use Trading 101 Basics
to examine its Support and Resistance relationships, etc. For
example, personally, I prefer to choose SHORT positions over
LONG ones, so I would filter the "candidate" trading pairs by
these factors before striking.
EDIT: link changed, and more online charts available.
Quick Links Page | The XScalp Private Server
EDIT: Desktop app is replaced by server-based realtime charts.
However, there is a much more highly interactive Desktop
app for those who are really keen on using Currency Strength
as a "technical fundamental" factor in FOREX trading !!
Due to support considerations the Desktop App isn't free, but
the charts available above for free provide a great deal of
useful information for medium to longer term trading.
Attached is a sample as of now, Wednesday October 7 18:18 UTC
showing the past 96 hours of analysis. Note that at this time
07:00 GMT or UTC is the London Open during British Summer
Time, I believe.
The Strategy is to look for the Strongest Currency to weaken
over time, and the Weakest to strengthen. So this permits the
trader to "fade" Currency relationships, looking for a "collapse"
back into the middle. This does result in "counter trend" trades
so I'd suggest you BID below a LONG position and OFFER above
a SHORT position, making the market come to you in the
Currency Pair perhaps 10 PIPs or so. Limit Orders rule !!