Trading the Trend with Strong Weak Analysis

We are seeing some big moves as the summer dull drums are clearly over, CAD hangs on to #1 as GBP and NZD surge, Yen has made another coast to coast trip ( #1 to #8)

CADJPY is our newest Top SW Trade, as you can see from the chart this one had a run as top trade back June/July were it hit a high of 364 pips before retracing the entire move before hitting new highs, the question he is how long will the Yen remain weak

2 Likes

Hi Dennis, Should I hold on to my NZDCAD short or wait for some opposing announcement from either central bank?

NZDCAD reversed hard today after hitting a new low and new high Pip total of +123 pips, it is now finding resistance at the 200 ma on the H1 chart, this has held any counter trend rallies in check. As far as should you hold or not, that should be in your trading plan before entering the trade, before entering a trade answer these three questions

  1. Why do I think this is a good trade
  2. at what price level or price action will prove me wrong about #1 and require an exit for a loss
  3. at what price level or price action will prove me correct about #1 and require me to take profits

write these down and follow them, then your emotions will not get in the way of your trading. is it easy, no, but that is what separates the good from the bad traders

2 Likes

Thanks a lot Dennis, I will tighten my stoploss in NZDCAD, if we get a convincing break above 200 MA on H1 i am out

Top currency CAD extends it’s lead over the rest of the back, my two most resent Top SW Trades CADJPY and NZDCAD gain on the day

1 Like

Dude, this is such a good thread, seriously.

The Ever Giving A Rattle To The Gator (No Not That Gator) VIPER

2 Likes

GBP surges into the #1 spot, it was a quite day except for the Pound, GBPNZD becomes our newest Top SW Trade

1 Like

Here is a run down of my Top Strong Weak Trades, The British Pound has exploded to the upside giving us some high reward/ risk trades

3 Likes

Thanks Dennis! Loving the summary vids.

1 Like

Mixed day with strong currencies GBP and CAD giving a little back will the rest of the market was up against the Yen. This was on a day that US stocks saw new all time highs

We are seeing a mini rally in the US dollar ahead of the Fed Res Bank meeting, this could be a buy the rumor sell the news play on the US dollar

1 Like

Year to date numbers show a slow moving market, Only pairs to have a double digit % move have been EURUSD and AUDUSD , as a long term trade I am long both of these

Good day for NZD, AUD and EUR, everything else moved very little

Behold the power of the gator.

I’ve had this cold, so I was bored and sittin around reading BPs and I decided to try to understand Dennis’s stuff here, so I looked at the little spreadsheet thingy, and I said let me look at the biggest number here, aha, GBP/JPY, yes that’s it, no it’s not I don’t trade it, well lets look at a 15 min. Holy Moly, the vaunted never failing upward pennant. So let’s do this live.

So first what I saw.

And now the payoff.

So all in all, it points you in the right direction. And no Dennis you don’t get a cut, it’s all mine, mine I tell you, all mine, oh, um, yeah, thanks :grin:

The EverGreen VIPER

2 Likes

the gator is all smiles :slight_smile:

1 Like

Hi dennis, could you share with me how you compute the percentages? I really would like to learn. I would appreciate it very much.

Everyone except Euro and CHF were up today against the Yen, looks like AUD lead everyone higher, there is not bad trade shorting the Yen right now

1 Like

Here is a short video I made some time ago on how to do your own Strong Weak ranking, I need to update it, but it should get you the basics

3 Likes

Yeah but you know what, there are still people shorting the Geppy. :wink:

The Ever Looking At the Moon And Not The Finger VIPER

whatever the majority is shorting that is what you want to go long in, just stay with the trend, and don’t get greedy, take profits along the way, stick with this plan and you can milk this market for steady cash

4 Likes