Yup I see that. Thank you for your effort, I’m going to make a concerted effort in using your info this year.
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In our Top Trade CHFJPY we got a little Pin Bar reversal, price still is below the 200 on the 1hr chart but if we can clear that then at least a test of last weeks high should be in play. Nice bounce in GBP, this is one to watch
In our Top Trade CHFJPY we got a little Pin Bar reversal, price still is below the 200 on the 1hr chart but if we can clear that then at least a test of last weeks high should be in play. Nice bounce in GBP, this is one to watch
This strategy has been posted previously and I’m revisiting the concept for traders that have recently joined the Babypips Forums… While the market is slow and very few opportunities appear to be on offer this week, I will point out another strategy that can be used with Dennis’s data.
At a glance of Dennis’s Strong Weak Ranking Chart the USD appears to be far stronger and strengthening over say the weakest currency the JPY. If you study the percentage values you will realize that the exact opposite is the reality… Since the 20th January USD has actually weakened against the JPY…
USD 20th - 0.86% | USD 21st - 0.55% | USD 22nd - 0.57% against the base JPY 0.00% Value
(See Below)
Now if you look at the USDJPY on the 1 Hour Chart (See Below) you can see that has created some opportunities to profit even while the currency markets are in consolidation…
Also have a look at GBPAUD, EURJPY and maybe a few other pairs and apply the same theory and see if you could have profited over the last say 5 - 7 days… from intra SWA opportunities.
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That`s true. USDJPY is a perfect example of this logic, as NZDUSD and CHFJPY.
Personally I`m using the SW as a Watch list for:
- See the movements of the pairs on the time, and not just on the last day.
I’m using different colors on each pair so I can visually track them. - Find pairs that are
trendingto the extremes, or extremes that are losing steam. - And finally, to check the extremes as a moment of either go with the trend, or find overbought oversold pairs.
Again, those numbers relate to the relative distance from the 4H 200MA, if I’m correct, so they show the bigger picture.
But when to enter and when to exit is the question: devil is on the detail!
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I’ve created a simple indicator on Trading View that will graph the pairs using Dennis’s parameters (or pretty close to them). The indicator will reflect the time period selected on the chart, which is convenient for seeing what is happening on shorter intervals.
I mostly use the Daily time period for mimicking Dennis’s spreadsheet. On the same layout, I can also view the chart of the actual strong weak pair that’s in play. Almost always the current SW is entering Overbought/Oversold territory and I use it’s exit from that state, along with any support and resistance lines in play to close or reverse trades. Catching the reversal of the SW can provide some great opportunities also.
Using the graph to trade converging and diverging pairs has been difficult and I don’t really see an advantage over other “price action” methodologies. What does stand out is trading the actual SW and entering the way Dennis does. It’s easily identifiable and when used with prudent SL/TP strategies, I’ve found that even on the pairs with a 50/50 win ratio, the winners are a lot bigger than the losers.
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The market keeps getting tighter but we do have a new Top SW Trade, AUDCHF* not a lot of separation and nowhere near our 2% rule but the long term chart shows this could be rolling over on way to another new low,
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Hi scout. That’s an interesting indicator. Would you mind to share it? I tried to search for it in TradingView but didn’t find this specific one (that compares majors with JPY).
Some very good recent posts that emphasise (especially for those new to the thread) that SW analysis is not itself a trading technique but requires reliable strats to be wrapped around it. Always enjoy this thread
Here you go. You can change the Length input to “34” in the settings.
//@version=3
study(title=“Percent difference between price and MA”)
Length = input(14, minval=1)
xSMA = sma(close, Length)
nRes = abs(close - xSMA) * 100 / close
timeframe = period
finalRes = if xSMA > close
-1*nRes
else
nRes
//USDJPY, EURJPY, GBPJPY, CHFJPY, AUDJPY, NZDJPY, CADJPY
//Plot for USDJPY
usdjpy = security(“USDJPY”, timeframe, finalRes)
plot(usdjpy, color=blue, title=“USDJPY”)
//Plot for EURJPY
eurjpy = security(“EURJPY”, timeframe, finalRes)
plot(eurjpy, color=orange, title=“EURJPY”)
//Plot for GBPJPY
gbpjpy = security(“GBPJPY”, timeframe, finalRes)
plot(gbpjpy, color=green, title=“GBPJPY”)
//Plot for CHFJPY
chfjpy = security(“CHFJPY”, timeframe, finalRes)
plot(chfjpy, color=black, title=“CHFJPY”)
//Plot for AUDJPY
audjpy = security(“AUDJPY”, timeframe, finalRes)
plot(audjpy, color=red, title=“AUDJPY”)
//Plot for NZDJPY
nzdjpy = security(“NZDJPY”, timeframe, finalRes)
plot(nzdjpy, color=maroon, title=“NZDJPY”)
//Plot for CADJPY
cadjpy = security(“CADJPY”, timeframe, finalRes)
plot(cadjpy, color=purple, title=“CADJPY”)
//Plot for JPYJPY
plot(0, color=yellow, title=“JPYJPY”)
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I salute you guys clever enough to code these indicators. However, looking at all those squiggly lines, I fear that you guys are beginning to complicate what is a very simple, brilliant and time tested idea of SWA. Remember guys, if it is not broken, dont fix it. No offense intended.
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No offence taken, squiggly lines…you’re right, it’s a bit much for a beginners forum and possibly a little too off topic for this concise and proven thread. Removed…
Another week in the books, we ended with a down day in the stock market and a stronger Yen as a result. Our Top Trade CHFJPY has completely retraced to its entry point so we will call that one done with +188 pips at its high, Top Trades AUDCHF is up a little bit and newest Top Trade EURCHF is in a strong downtrend, nothing says it can’t go lower.
Note; nothings says you need to take every SW trade and I would advise being in no more than two trades at a time and even better don’t take that second trade until the first one has a breakeven stop in place
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Top Trade AUDCHF* is up +87 pips from its entry point, 13 more pips and we will call this one a winner as well. If you got in at the entry point nothing wrong in moving your stop up to breakeven
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Yen has nosed out CHF for the top spot, Top Trade AUDCHF broke the 100 pip mark so we will make that one as a winner, that is a pretty good reversal in AUDCHF, if not closing out I would at the very least have a breakeven stop, this is likely to move higher tomorrow
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Top Trade AUDJPY* posted a small gain today,
Note; Australia’s economy is strongly linked to China so the coronavirus is going to have a negative effect on AUD making short AUDJPY a nice-looking trade
I should have come to here before putting on my AUD/NZD on Jan. 14.!
A little busy but will have some charts later tonight, Top Trade AUDJPY* hit the 100 pip mark , yes another winner
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After a two-day pullback Top Trade AUDCHF* hit a new low and maybe heading lower
Strong Weak has given us 4 trades in January three have topped the 100 pip mark, only one not playing ball is EURCHF but give it time
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Rinse and repeat
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