Need help finding currency strength and trends

Trading Systems
1

Hey all

I would like to use the H4 time frames to know which currencies are strong and which are weak and nuetral. For example, the way I want to do this is by having all 7 USD major pairs next to each other in a grid on the screen. For example if the USD is strong and trending for the last 3.5 days against 5 pairs out of the 7 I can look at those 5 charts and see which pairs from the 5 are entering a retracement/pullback and I can enter there? Does anyone else do this?

Question:-

  1. When I have all the charts lined up on the same screen, what is the best way of writing down if the currency is strong/nuetral/weak?

I am thinking of using a 14 EMA which on a H4 chart means the EMA is measuring 3.5 days of data, and if each chart is pointing in the same direction that includes that pair I can see price trending in a certain direction I would write down if its strong or not. At the moment I am just visually looking for the trends with price and the EMA to figure out strength then writing strong/nuetral/weak.

I want my edge to be that I know what currency is strong, I can see the trend on the charts against other currencies, then I buy on the retracement using candlesticks and S/R for the trade with a 1:2 RR. I am trying to build a strategy that has over a 50% win ratio.

I know others must look at what currencies are strong/weak and I am wondering how you detirmine this.

Thanks for your help :slight_smile:

Kind regards,

2

THIS THREAD has the most popular methodology on this forum for doing exactly what you want to do.

But, instead of reading the whole thread –

• Jump to THIS POST for a short video on Dennis’ calculations.

• Or you can see essentially the same video HERE on Youtube

• If you want to do your own calculations, using Dennis’ methodology, HERE is how I do it.

3 Likes
3

:slight_smile:️Hello. If your platform are MT4 there are free indicator for Currency strenght. its CCFp for 8 base currency strenght.

4

I do something along these lines but its very simple. I use one criterion to gauge the strength of each major currency based against the other majors, so for example USD is based against the other 7 majors. I use the sequence of the 20 and 50EMA’s - if the 20 is above the 50, that is a bullish score point, if its below that is a bearish score point.

Right now, the 20 is above the 50 on 5 out of the 7 USD-based major pairs, so its score is 5-2. AUD only scores 1-6. This suggests AUD/USD should be expected to be bearish, and this is what is happening.

This is a quick and crude gauge, you could no doubt develop your own criteria.

5

Some good replies in here. Some things I did not know, so always makes interesting reading :slight_smile:

6

Thank you all for the great information and links, it is much appreciated :slight_smile:

8

Do you think so ?

Here’s a little example of George Soros betting Billions AGAINST “Interest Rates” :smile:

https://www.youtube.com/watch?v=K_oET45GzMI

10

Just wanted to say thanks to you personally for going through the effort of getting the links, thank you.