Hey @Rustang,
Thanks for the reply - I appreciate the description of the testing that you have done. I too would like to test this approach which Dennis has shared, i’m genuinely curious how this strong/weak could be used a filter per se on what pairs to really focus on. He’s done some great work and I don’t question that - I also fully understand that when someone asks for proof it can usually results in a bombardment of defensive replies; which has not happened here by anyone, that’s great!
Many thanks Clint.
Currency Strength Giraia 28 looks straightforward.
This shows that the numbers are based upon the percentage the current bid is in relation to the high & low of the day. I’ve seen this algorithm for CSM’s before.
double day_high = MarketInfo(CP[i],MODE_HIGH);
double day_low = MarketInfo(CP[i],MODE_LOW);
double curr_bid = MarketInfo(CP[i],MODE_BID);
double bid_ratio = DivZero(curr_bid - day_low, day_high - day_low);
Then the author assigns a weighting. It looks Gaussian.
double ind_strength = 0;
if (bid_ratio >= 0.97) ind_strength = 9; else
if (bid_ratio >= 0.90) ind_strength = 8; else
if (bid_ratio >= 0.75) ind_strength = 7; else
if (bid_ratio >= 0.60) ind_strength = 6; else
if (bid_ratio >= 0.50) ind_strength = 5; else
if (bid_ratio >= 0.40) ind_strength = 4; else
if (bid_ratio >= 0.25) ind_strength = 3; else
if (bid_ratio >= 0.10) ind_strength = 2; else
if (bid_ratio >= 0.03) ind_strength = 1;
It’s different from Dennis’ algorithm, but it looks interesting.
You can research the background here
https://www.forexfactory.com/showthread.php?p=8290652#post8290652
Very different looking ranking from the end of last week, you could either see this as a consolidation or change in direction. US stocks are on a two-week skid and our rankings reflect that. If US stocks start rallying again the dollar will likely drop but if the down move last another week there is lots of room for a USDCAD or AUDUSD to continue last weeks trend
Good morning to all the smart SW traders. I have a few questions, but one in particular. I have attached the chart depicting the latest GBPJPY trend. It is the first I have had the opportunity to see. It appears that the entry is very safe not a bad idea, but there was no sign of an exit, which I understand as it is not a comprehensive system on it’s own. At the apex of the long trade there was an obvious topping formation followed buy a few good short entries which would also have provided an exit for the long trade.
I wonder if this system is for long trades only as the GPBJPY trade was passed by 5th March and yet SW still showed long on the 8th March. I am wondering if another similar system is required ie exact but opposite for a short trade?
Your comments would be appreciated.
Gordon
like all such indicators it is lagging in nature. One might well take a short term counter trend trade. You will notice that the GBP is weakening and JPY strengthening on the SW grid as you would predict from the chart above. You need to wrap your own strats around this information
As I said yesterday if the US stocks rally the dollar will fall and that is what happen today, Look at the GBPUSD that is one powerful bullish engulfing candle on the daily, then look how price stopped at the 200 ma on the 1 hr chart, maybe we get a little better price if not I would be buying the breakout above today’s high
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huge moves this morning in GBP ahead of any announcement from Strasbourg or London. Beware the effects of Brexit and the major changes that agreement would bring
Did you buy the breakout? trade like stocks, buy and hold…
Wild day if you were trading the Pound, for everyone else we have a contracting market
True - I called the top and bottom for this week thus far on Sunday just gone in GBP.USD, was no more than 10% out on the top and less on the low that was formed yesterday. TA can still work, even when crap hits the fan, as we have seen.
These were the levels posted on Sunday
Another wild ride for Pound traders, GBPJPY is back to #1 and is up +400 from its first entry point on Feb 19th, how you could have justified holding through that pullback is unclear but the trend continues
Thanks @Dennis3450. Great work as always. I have been following GBPJPY for two weeks now and did some trades on demo account with success. I was getting in the trade when it retraced to the 200or 34 sma but sometimes it stoped me out. I was looking for a bit of advice from all who follow this thread. What kind of system or indicator do you use to get in the trade?? ( I am not looking for the holy grail but some suggestions to try for myself) Thanks to all and happy pips 
It has been a rollercoaster ride for Pound traders but if you held through the pullbacks by end of the week you were looking pretty good
we start the week with a small pullback, I am not into day trading but if I were this is the type of market to get your feet wet, these small moves will not cost you much if on the wrong side of the trade
