another day of consolidation and top trade GBPNZD continues to ride the 200ma on the 1hr chart
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In post 1650 I said
yet someone here ( whoâs name cannot be said) keeps referring to that post as if it is the official SW Trading System. There is no official rules for trading SW , My SW rankings is there to identify the strongest trend based on a time period I have found to be very consistent in taking advantage of swings in the market. Yes these are Swing Trades. lets keep our focus on what is important, Identifying pairs that are in strong trends and take advantage of those trends.
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It has been a tough year for long term trades but GBPUSD hit a new low a couple days ago, This is my type of trend, something I saw a lot of 5 years ago, not so much anymore
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USD is the strongest currency year to date, with AUD weakest, so how about an AUDUSD short trade, Looking at the chart we have a very bearish looking 4 day uptrend ,
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I have decided not to trade this system per sé. But I value certain ideas about looking at relative strengths among currencies for making overarching decisions. I have already begun doing the calculations, including XAGJPY, XAUJPY and ZARJPY.
For example, I want to trade the ZAR. So per this Strong Weak analysis, Iâll look at ZARJPY, even though I canât trade it. ZAR is weak. I already know what to think about USD, EUR, and GBP from strength analysis, and it quickly becomes clear to me that EURZAR is the preferred option, at least since its peak on Sep 4. The moves are about 10% larger vis a vis USDZAR, and the patterns are clearer, signals are stronger.
This Strong Weak discussion does not provide me with entries and exits, but it does help me conclude that, in the current market environment, I have a better chance at success trading EURZAR. So thatâs the pair Iâm watching for an entry, if and when I get a buy signal.
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Whatâs of value here is that JPY can be used as the reliable standard against which to measure the strength and weakness of other currencies. Iâve heard something like this before, but usually peopleâs opinions and beliefs. Here we have somebody who has actually used the Yen standard as the basis for a system of trading and has been consistently successful at it â thatâs impressive!
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Once again, the JPY has no magic value, Iâm sure Dennis will agree with that, or else reveal why it might be so; by believing that, what else have you been fooled by I wonder?
Not to get too professorial here, but â
There is nothing special about the JPY as the basis against which all the other currencies are measured.
Any basis could be chosen, and it would work just as effectively as the JPY (or the USD, or any of the other major currencies).
Specifically, the 8 majors could be measured against the spot price of a gram of gold in New York, or the wholesale price of a pound of peanuts in Georgia, and â although the ratings numbers would be different â the rankings would be exactly the same as Dennisâ JPY-based rankings.
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Iâll chime in about here, since I was the OP who started the âotherâ SW thread⊠yes⊠the one Iceman is currently squatting in⊠parading as his creation⊠of which I have no issue as long as members gain from the contentâŠ
The only reason I started the thread was to combat the effect of the JPY roaring up and down the graph from #1 to #8 and back again every few days⊠I (and other members) found it destabilising to trade such a volatile mix of pairs.
And as quite rightly pointed out by Clint in the post above, ANY of the 8 Majors can be substituted to give a similar resultâŠ
So I found the Finviz site which used a similar formula to Dennisâs SW analysis using the USD as the constant currency⊠this at the time had the characteristic of smoothing the movement of the other 7 currency pairs⊠no other reasonâŠ
As far as Iâm concerned, Dennisâs thread is the benchmark by which all others can be measured at this time⊠the longevity, the documentation and the discipline with which he trades the strategy and maintains the thread (even through adversity⊠such as Snowman) is to be saluted.
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And down we go, nothing magical here just sound technicals, if you jumped in on this after my first post you should at the least have a break even stop in place by now. As far as profit taking, no one knows the future, set a target that you can live with and let the trade take you out with a profit or break even
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Simple reason I use the Yen as my base currency is because it is simple. Yen is always listed second ( AUDJPY,NZDJPY, EURJPY, and so on) This means the math is the same for all pairs, Unlike the USD that would require a conversion for USDCAD and EURUSD. It just saves a step and I am all about keeping things simple.
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Thanks, but I will opt in for the Yen standard; opt out for USD standard. It is no coincidence that my profile pic is a piece of digital art I created using a real world chart of CHFJPY.
Title is âresistance becomes support in a non-trending marketâ
CHFJPY is an elegant, highly orthodox chart. Doesnât move much, but when it does, it hits every statistically significant pivot point with high probability. XAUCHF is even more orthodox, but not convenient to trade.
Tradingviewâs index charts seem interesting for measuring currency strength against a standard. And yet, I find myself going back to JPYâŠ
âŠat the very least, it is always the quote currency, so all JPY charts move in the same direction as strength.
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Thanks again Dennis 
I did indeed enter shortly after your post and have brought my stop to break even - I have learned from the mistakes of my recently mis-
managed trade! Looking forward to your next video 
Youâre a star!
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Folks Denis is 100% correct, no matter how you arrive at it, Strength over weakness rules! Alternatively you can trade the inverseâŠLOL
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Hi, @ Sbrandi & @ Dennis
I have this idea and need your thoughts on it,
Canât we take the SW from Dennis and the indicator from Sbrandi and add two of those on the chart, one would be for yesterdayâs close fixed as ur screenshot and another beside it with todayâs live data (meaning it is still using daily but the numbers will keep changing during the day every x time interval -can be changeable from settings-), wouldnât this give us an insight on how a new pair is doing or how much likely that it might change, and will it benefit us while planning the trade during that day?
@ Dennis, I met a trader I know today, one of a kind (in short, donât think I will ever meet a trader like him again in my life), monthly success +80 % and above and trading for 20 years.
So, I ran the brief of ur forum (which is really good Thank You for that) to him and the brief of what he said is âI have been using the JPY as base for years, now switch urself to 80% fundamental and a bit more in political then do the technical in the rest, the 20%. then u will really understand how to trade and how trading should be doneâ.
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Yes, agree, only other currency would be the EUR which is the base for all the pairs. Although I believe there are charting packages that will display either way, maybe Trading View, eg. CADUSD for visual reference but not much good when you canât trade it, I think currencies futures might be able to however.
What I find funny is people say the JPY is weak when all the pairs are going down, selling YEN they post
Not that hard to visual a currency even with it as base or quote currency, see the NZD for example
great idea, but consider that there are literally hundreds of Currency Strength Meter available from MQL5 store, both paid and free, using every which way type of analysis and torturing of the price information, moving average and close such as Dennis would be the most common
and not to mention famous web pages like FINVIZ will give you the strength for the day that you want to add to the mix, so there you have it, observe Dennis pick and watch a daily meter, thatâs what you want right?
I seriously doubt that you can invent the holy grail, but I wish you every success
yep, what he said!
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I have this idea and need your thoughts on it,
Canât we take the SW from Dennis and the indicator from Sbrandi and add two of those on the chart, one would be for yesterdayâs close fixed as ur screenshot and another beside it with todayâs live data (meaning it is still using daily but the numbers will keep changing during the day every x time interval -can be changeable from settings-), wouldnât this give us an insight on how a new pair is doing or how much likely that it might change, and will it benefit us while planning the trade during that day?
Dennis last said AUDUSD right?
Here is todayâs data as you requested
Can u send me this link plz
@ Dennis still waiting ur opinion.
Thx