Hi Dennis,
How do you get the percentages for your core pairs? Hopefully you will also include this in your daily SW analysis.
Thank you
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You can simply measure the % differnce between any two currencies from my SW Ranking and that will give you a % for that pair. Example form Friday’s SW NZD is 19% and AUD is -19% add the two you get AUDNZD 0.38% that would not be a very good trend. Most popular pair EURUSD is only 0.04% again not very good but GBPUSD is at 3.42% that is a good number
hope this helps
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It’s a fantastic pair right now 
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I was wondering why you would depart from your own rules? That was what I found so unexpected, if not random (as my two very different vertebrates seemed to you 
).
So this part about narrowing down options is very interesting to me. That was not evident to me by your reasoning for picking your core 7.
That was the reason for my post – I really wanted to know your answer
Hi Dennis,
I am not able to get the figures you got. NZD is (+) 19% and AUD is (-) 19%. So if I add the two I get 0% for AUDNZD. EUR is (-) 0.70% and USD is (-) 0.74% and if I add them I get (-) 1.44% for EURUSD. And GBP is (+) 2.68% while USD is (-) 0.74. So if I add them I get (+) 1.94% for GBPUSD.
Perhaps you could show me where I went wrong.
Thank you
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Where is the problem?
On Friday the AUDNZD move 26 pips high to low, seems like a " 0 " to me
Meanwhile GBPUSD moved mainly up 160+ pips with on a ADR of 120
Perhaps you could show me where I went wrong.
Thank you
This is not strictly a mathematical issue, rather it is a commmonsense issue. If NZD is plus 19 and AUD minus 19 it means that they are going in opposite directions relative to the yardstick JPY. Therefore, relative to each other, they are at a 38% difference. Similarly, EUR and USD are both minus and therefore going in the same direction relative to JPY and therefore the net difference between them is only 0.04%.
Mathematically one is actually subtracting one from the other.
Think of it like 2 cars. If they are going in opposite directions then their speed difference relative to each other is the sum of their two speeds. But if they are going in the same direction then the difference in their speed relative to each other is the only the difference between their two speeds.
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it IS a mathematical issue. Think back to school. A minus minus is a plus
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That is what I said…
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Good day Dennis.
I have been watching your excellent thread for about 2 months now and understand most of what you have explained, I have one question. if you miss an entry on the 1H time frame and it comes up later on the 4H chart would enter on this or would wait for another on the 1H chart.
Once again many thanks for an excellent learning opportunity.
Gordon
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you did indeed Manxx but you also said it isnt strictly a mathematical issue. It is totally a mathematical issue which is worth understanding so was hoping to add some additional clarity to what you said not trying to criticise you in any way
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My point in saying it is not “strictly” a mathematical issue was to indicate that it is worth putting one’s brain in gear and thinking what the logic is and not just blindly following an instruction to “add” together! Maybe “combine” would have been a better word.
I can’t help thinking sometimes that if Dennis were to say “remember to put your feet in a bucket of cold water before you enter a trade” someone would ask “how cold should it be”… 
If your car navigator says turn right and there is no turning do you just drive into the ditch anyway - or stop to think a bit about what it might actually mean?
OK, sorry that I bothered to interfere here! 
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Hi,
Thanks mate. The graphical illustration made it very clear.
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Hi,
Thanks Manxx. Relative to JPY! Now it is clear
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You’re welcome!
Another reason, of course, why this is not a strictly mathematical issue, is because the precise derived numbers are not, in themselves, critical. I.e. the actual figure, whether it is 0.38% or 0.32% or 0.45%, is not the entire story. It is only an indication of the relative potential for further deviation between the currencies concerned.
A high(ish) number would indicate good potential for more deviation whilst a small(ish) difference suggests the currencies are moving relatively in parallel strength. It is not an exact science what these number are saying. And, of course, one should consider these numbers in the light of the other factors that apply to one’s trading method.
As has been said many times, this is not a “turnkey” trading system, it is a method to determine which currency pairs one might best apply one’s own trading method to. 
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Manexx, you are right on with that thought process, they way I choose to look at S&W is similar but with percentage of deviation from the mean and mean reversal given the very narrow nature of currency movement.
All of the above is how heat maps are derived, issue is most do not factor in the time cycle.
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Hi Manxx,
Thank you for the invaluable lessons.
:
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Weak pullback today against the Pound, market is setting up nicely for another Pound move higher, and I plan on being in that trade.
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I’ve got my level set too, waiting on a retrace to the downside first… then a smooth ride to some 
and maybe some 
for her 
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