Hi @Jahruhay, I’m no Guru… But I will give some tips on the way I trade the graphs that Dennis posts (I generate my own) every few days…
First of all I very rarely trade the strongest against the weakest… 1 & 8… By the time the currencies have moved into these positions the trend is nearly over and ready to reverse, so it’s too hard (for me!) to pick the actual point at which to enter a trade…safely. Dennis does this, and it works well, very well for him.
I look at the graph across the two days (22nd - 25th) and see which currencies are on the move within… ie: you can now see that NZD has increased from 1.39% to 2.20% (+ 0.81%) and the CAD has decreased from 1.66% to 1.59% (-0.07%). Hence my BUY position on the NZDCAD… it’s almost a full 1% swing in strength to the NZD… and generated 65 pips yesterday…
Looking again at the Dennis’s latest S/W Rankings graph, ALL currencies have strengthened against their Friday values… so there appears at first glance that we have zero to trade… The GBP has gone from 1.63% to 2.21% (+0.58%) our strongest (-NZD), now let’s find the one with the least increase… the CAD is the only one… 1.66% to 1.59% (-0.07%)… so small (+0.65), so now look at the GBPCAD Chart and this should still indicate that a BUY opportunity may exist… (GBPCAD 1H Below)
We’ve now traded 1 against 3 across 180+ pips and hopefully grabbed some profit from the market.
It’s that simple… Now backtest it… thoroughly… look back over last weeks graphs, and do the same as I have done here… and don’t look at the charts until the data has told you what the result should be… it will give you confidence that your analysis is working… The 200MA has a lot to answer for…
Also apply the same formula across multiple days… some currencies can strengthen/weaken across 4 - 5 days giving you a huge opportunity to profit across the D1 Charts…
Hope this gives newbies an alternate entry strategy to Dennis’s phantasmagorical strategy…
PS. How’d I get a figure from the 23rd…? It was a Saturday…? I’m in Aust. so New York doesn’t close in my part of the world until Sat. at 9.00am…
@The_Snowman, NOT AT ALL, it is not the aim to have day traders take over the thread… just another way to interpret the data feed that Dennis’s strategy generates…