All trends start and end at support and resistance, all consolidations, retracements and reversals start at support and resistance. Setting price alerts can be useful in monitoring for price breakouts and for initiating trades. Support and resistance levels can also be used for setting price targets and estimating exit points. Looking for pairs with lots of pip potential and avoiding clusters and layers of support and resistance on your trade entries will improve your trading and increase the number of pips you capture week after week.
Example:
For selling the AUD/CAD you can verify the sell using the AUD pairs, or the CAD pairs. If the AUD is weak across all pairs you can sell the AUD/CAD, or if the CAD is strong on all pairs, traders can also verify the sell this way. It is also possible to use both groups of pairs to verify the sell trade
In these circumstances, the total distance of prior move, or it’s distance
from Bands, is far more valid
Smooth oscillations on the larger time frames are excellent forex trend reversal patterns.
In a strong trending market, you can also have reversals. If a currency pair drops for many days in the direction of the major trend, then stalls and goes sideways, as a trader you have to think about a reversal. So if you missed the large move down start to look for the reversal back up.
Individual currencies drive the market movements, not indicators, to match this you have to analyze individual currencies daily and get rid of all of the technical indicators that have failed forex traders for years. Don’t trade indicators trade currencies.
Thanks Max, I’ve certainly had a few aha moments over the holidays
But this might also be a useful tool, a free spreadsheet that analyses
Trend strength for you, and then tells you what pairs to focus on
Then I compare Strong/Weak ranking, and if we get a match, look
for an entry signal
The spreadsheet is from a Free resource site. The only thing they
charge for is a currency strength indicator, which you can get FREE
from Dennis here, or OANDA, FX street, Myfxbook, Finviz,
Tradingview, and countless other free sites, so I’m not quite sure
why anyone would pay for a freely available resource.
Having slept on the matter I have a new global insight
’Indicators are toys for boys’
I fear there may be more truth in that than many of us
care to admit
I don’t know how useful the above spreadsheet is,
admittedly it is more a tool than indicator, but it
still indicates where the strength is
However we do it, I want to see S/W disparity on
Weekly and Daily, there are plenty of sites that
are excellent for this. I don’t find precise %
amount is necessary, dark red or dark blue
tells me all I need to know. pale colours or
white tell me to keep away.
so at the moment Yen is the stand out
and there is trend strength on Yen pairs
However
that is not the green light to re enter!
I have indeed just re entered on NZDJPY and
I think the screenshot should tell you why
goooood insight, and you’re definitely right about everything you stated. It’s much safer to trade after a breakout happens, rather than just trading within a consolidated area
Finviz calculates % change of all the majors against the USD and provides the daily live rating. And it really doesn’t matter what currency is used as base currency, the rating will stay the same even if the % change will differ ( I used Trading view and made use of other currencies as base to verify this theory) and have so far built a strategy around it.
I am still a firm follower of Dennis’s thread.
And I also don’t use indicators at all.
It’s weird, I didnt get a notifaiction for your reply hence my late reply.
