Review Hybrid Grid Strategy Wk 47&48

In this article I will provide my view on the EUR/NZD, AUD/USD and the EUR/CAD. These are the pairs that I am currently interested in or was interested in last week for trading with the Hybrid Grid strategy. I will pick one to analyse in more detail from the pairs that have not been discussed yet recently.

This article will provide:

[ul]
[li]The weekly currency chart for the analyzed pair.[/li][li]The daily(timing) chart for the analyzed pair.[/li][li]Possible positions for the coming week and positions taken.[/li][/ul]

According to the TA Charts, the “Currency score” and the “Ranking & Rating list”, the best pairs to trade are the in the Top10 of the “Ranking & Rating list”. See also my previous articles of this weekend.
There are some rules for taking positions according to the FxTaTrader Hybrid Grid Strategy. The strategy can open multiple positions of a currency pair but each currency may only be present once in the pairs chosen for trading. It means that not all the possible positions of this coming week can be opened. For more information see FxTaTrader Hybrid Grid Strategy. Another rule is that a pair outside the Bollinger Band in the Weekly chart is considered overbought/oversold. No positions are taken for these pairs which are in this case the JPY pairs. The preference for this coming week goes to the AUD/USD with the EUR/CAD.
Last week (pending) orders were placed for the EUR/NZD and the AUD/USD with profit 1x EUR/NZD and profit 3x AUD/USD.


Open/pending positions of last week

EUR/NZD

This pair will be analyzed briefly, for more information read the article Review FxTaTrader Strategy Wk 46/47. Profit was made last week on 1 position.

The pair looks interesting in the last few weeks for going short. The pull back last week offered a good opportunity and profit was made on 1 position. The situation is more or less similar to last week but the pair is back to the recent lows of the last 2 weeks. The monthly and weekly chart are also still showing strength for going short. According to the Weekly chart there is more space for going down but the EUR/CAD looks better for the coming week.

[ul]
[li]In the daily chart the Ichimoku is meeting almost all the conditions except for the Chikou-Spam being above the cloud.[/li][li]The MACD is in negative territory and gaining strength.[/li][li]The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.[/li][/ul]
Ranking and rating list Week 48
Rank: 7
Rating: - -

Total outlook: Down


AUD/USD

This pair will also be analyzed briefly, for more information read the article Review FxTaTrader Strategy Wk 45&46. The pair looks interesting in the last few weeks for going short. Profit was made last week on 3 positions. The pair is still meeting all the conditions in the Daily chart and remains interesting coming week for taking positions. With the new recent low made in week 45 and the indicators in the Daily chart being bearish it seems as if the downtrend could resume at any moment.

[ul]
[li]In the daily chart the Ichimoku is meeting all the conditions.[/li][li]The MACD is in negative territory. It is consolidating and according to the Histogram it is weakening.[/li][li]The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.[/li][/ul]

Ranking and rating list Week 48
Rank: 6
Rating: - -

Total outlook: Down


Possible positions for coming week

EUR/CAD

This pair will be analyzed in more detail. The situation compared to the last weeks has improved and the pair is interesting for the Hybrid Grid strategy. At the moment the pair broke through a bottom that remained a good support for 10 weeks. The CAD is at this moment the stronger currency after the USD according to the Currency score and this makes it also interesting. All other conditions in the Weekly(decision) chart are looking good for going short.

[ul]
[li]As can be seen in the Currency Score chart in my previous article of this weekend Forex Weekly Currency Score Wk 48, the CAD is having a score of 7 and the EUR a score of 2. With a Currency score difference of 5 it is an interesting pair for going short.[/li][li]The position in the Ranking and Rating list in the last weeks also shows that the pair is attractive for taking short positions. In the current list of this weekend Forex Ranking & Rating Wk 48 the pair has a rank of 4. This list is used as additional information besides the Currency score and the Technical analysis charts.[/li][li]Besides the general information mentioned the outlook in the TA charts also makes it an attractive opportunity.[/li][/ul]

Ranking and rating list Week 48
Rank: 4
Rating: - -

Weekly Currency score: Down

Based on the currency score the pair looked interesting in the last 3 months. The CAD is an average performing currency from a longer term view and currently having a score of 7. The EUR is a weaker currency from a longer term perspective and is still remaining at this area with a score of 2. The CAD is for now an average performing currency but if the scores remain at the higher levels in the coming weeks it will be a stronger currency. The EUR is still clearly a weaker currency and as it seems it will remain this way for the coming period. Based solely on this information the pair looks interesting for going short.

Monthly chart: Neutral

[ul]
[li]On the monthly(context) chart the indicators are looking weak for going long.[/li][li]The Ichimoku is looking neutral with price in the Ichimoku cloud.[/li][li]The MACD is in positive area but consolidating according to the histogram.[/li][li]The Parabolic SAR is short but not showing the preferred pattern of lower stop loss on opening of new long and short positions.[/li][li]Since the monthly chart is used to get the context how that pair is developing for the long term the indicators are looking fine because they are showing weakness in the current uptrend.[/li][/ul]

Weekly chart: Down

[ul]
[li]On the weekly(decision) chart the indicators are looking strong for going short.[/li][li]The Ichimoku is meeting almost all the conditions except for the Chikou-Span which is in the cloud.[/li][li]The MACD is in negative area and slightly gaining strength.[/li][li]The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.[/li][/ul]

Daily chart: Down

[ul]
[li]On the daily(timing) chart the indicators are looking strong for going short.[/li][li]The Ichimoku is meeting all the conditions.[/li][li]The MACD is in negative area and slightly gaining strength.[/li][li]The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.[/li][/ul]

Total outlook: Down


Although the explanation may seem simple and clear there is always risk involved. I added a disclaimer to my blog for this purpose. If you like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week and don’t forget to check my weekly Forex “Ranking and Rating list” and the “Currency Score”.


DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for ‘Forex Trading Journal’ purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.