Trading the Trend with Strong Weak Analysis

I pulled these number 45 min before the daily close, there was a lot of interday movement but in the end, everything is pretty much where it was this time yesterday


Happy Friday folks.

I’ve been working on an interpretation of Dennis’ algorithm. The primary benefit of the EA version is that you can visually see the tendencies over prior periods. Another benefit: you can run the exact same algorithm on the H1 time scale. We’re still measuring price to the 200SMA for the JPY pairs group, and separating exactly the same way, but just on a shorter time frame. This might be used for shorter term trades, or to double check the values on the H4 time frame.

Here I have plotted individual lines between the current value and the value 8 periods ago. I believe this is simply one of the formulas for momentum (the other uses division). The idea with S/W is to pit the strong against the weak. In this case, the “strong” is any currency that is increasing (positive slope) e.g. CAD, NZD, AUD and “weak” is any currency that is decreasing (negative slope) (e.g. GBP, USD, EUR).

Any constructive thoughts or suggestions?

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Good idea, I have an Idea, how about having a 0 starting point and see which currency moves within the day? Is it possible?


Thanks for the post, just a couple of queries if ya don’t mind me asking.

I remember you talking about crossovers earlier in thread, but these seem to happen very frequently and could cause a lot of ‘noise’, do you use other fltering techniques/indicators for taking a trade?

Also, the indicator in the image looks interesting, is it downloadable from mt4 (or any other site) or is it your own developed indicator? No worries if so.


These already exist in the hundreds, some are great, just find one that suits yourself, read the price action, that’s the only FILTER required, HINT: if it’s going up, Buy, if it’s going down, Sell,

but re-invent the wheel if you must, good luck


Updated version. Now has currency color map.

The indicator is named in honor of Dennis, and his method, without whom this thread would not exist.

Dennis_SW_HOWTO.pdf (54.5 KB)

Dennis_SW.ex5 (88.3 KB)

GBP is catching everyone off guard, how long before it makes it to top of Dennis chart?

Yes how long, thrilled to be here, keen to read and learn, green pips to all.

Could you please link the mq4 file?

The Pound has reclaimed the top spot after a 6-week pullback, weakness continues in NZD and now AUD has joined it, Seeing how US stock indexes are all at or near their year high you would expect AUD to be strong, You just cannot rely on those old correlations. NZD’s weakness could be tied to the current weakness in Gold, that is one correlation that still seems to apply

As far as our newest top SW Trade GBPNZD, you could ride the current momentum or wait for the pullback, in any case, there is nothing to indicate current uptrend has ended




Q: Is there an MT4 version?
A: No. I do not write MT4 code.

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In this case, the “strong” is any currency that is increasing (positive slope) e.g. CAD, NZD, AUD and “weak” is any currency that is decreasing (negative slope) (e.g. GBP, USD, EUR).

Be that wrong way around?

I was thinking in terms of a traditional Cartesian coordinate system, from left to right. where I imagine the starting point of each drawn line to be at 0,0, i.e. the left most point. I do this because time goes from left to right on the chart, and I’m concerned with tendencies of Dennis’ numbers over time.

x y coordinates

So in the chart pictured in my original post, AUD is increasing, the line would be in quadrant I, which has a positive slope, and is heading upward in the direction of the #1 (strongest) position. I consider that to be AUD strengthening.

I always wondered why Cartesian coordinates weren’t called Descartesian coordinates . . . .

Yen gaps open higher to start the new week, this is all about US and China trade talks



I rather liked the new top spot for 6-May of (NZDJPY). Things may, of course, change, but I have been getting a steady stream of pips this morning for a trade I placed just after Dennis posted these numbers.

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Yen remains strong as US stocks continue pullback, this has been the pattern this year, Stocks rally Yen falls, stocks fall Yen rallies.



We have not seen one currency this strong over the market in a long time, but how long will it last



I’ve had the top pair (NZDJPY) short since 6-May, and it has brought in only about 70 pips thus far. There is a support level around 2019.01.03 that I hope it reaches, but I am not holding my breath.


i dig it. watch cd gb eu us to drop against the jpy, not the au. set price alarms 81.46 142.93 122.92 109.82 respectively. i would not be suprised if the au is set to rally soon. hard market, be patient.

If you jumped on Top Trade NZDJPY on May 1st you could have made 100 pips, in this market you take what you can get


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