Possible day trading strategy that I want to test out over the next few weeks. This uses SW formulas similar to Dennis’ Strong Weak thread, but with some significant alterations.
For this strategy I am using the Bollinger Bands 20MA on the daily chart (EOD).
By doing this I am trying to determine the pair furthest away from the MA, indicating a pullback or reversal.
Here are Friday’s numbers:
As you can see, EURAUD & EURCAD are the top two, furthest away from the 20 MA. Let’s take a look at those charts:
EURAUD - Higher low, long-term downtrend, positive inside bar. Nothing too spectacular to signal a pullback, maybe that IB.
EURCAD - Higher low, current downtrend, long-term ranging, and if you look left there is some previous support. Also, look at that pin-bar on Friday, that can be a signal for a trend reversal or a pullback. I would be long on this pair, according to this strategy.
Let’s see how these 2 pairs finish on Monday.