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?
- 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