I’m with Trendwithbenefits on this. It is one powerful method but dont take it AS IS. Develop your own methods with it. The 200 MA is very powerful and Dennis’s way of using it is the best I have ever come across…Plus I trade for a living and have done for years.
My own approach and one that I have been working on a lot just uses Dennis’s rating but it waits until the JPY is either the Strongest (No.1) or the weakest (No.8) - As Dennis has explained many times it does travel from number 1 - 8 and from 8 - 1
Then it waits until certain things happen. Like in a chart below… Yes, its a mess but you can see the power in it.
When will the JPY when it the strongest… Go weak
when will the JPY when it is the weakest - Go strong
The JPY went the weakest on Dennis’s method on the 18th Feb… Now we wait.
All JPY pairs must hit the GOLD line - So if the JPY is the weakest the GBP/JPY must hit the TOP gold line… One by one all the JPY pairs hit the top gold line… The USD/JPY was the last to hit it… I new then with a high degree of accuracy that the JPY will become strong.
And with a good chance it will go to the number one spot on Dennis’s rankings.
OK, not the best explanation as its 04.31am and ha no sleep yet. I will give proper explanation one day if anyone interested but I don’t want to sidetrack Dennis’s thread.
Keep things simple and don’t over complicate things…
Who knows what tomorrow will bring… One thing to remember is that is, for example the USD is strong doesn’t mean it will remain strong… The AUD is very weak at the minute. That doesn’t mean it will remain weak and could go strong at any time.
One simple, powerful approach and in four days resulted in this… Sorry but as I trade for a living it was a high lot trade. Stop loss is now tight as its Friday and NFP (Non Farm Payroll) day