Trading the Trend with Strong Weak Analysis

we have some killer setups but will the market cooperate, USDCHF is just screaming buy me, but sometimes if a trade likes too good, and you know the rest


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I’ll be watching GBPAUD. If you look at the Δ over the past day, you can see that GPB has gained in strength and AUD has lessened in strength. Looks like GBPAUD is consolidating on H1 right now, but if it goes back up, it has the potential for more pips.

How do we insert these GIMP? tried a couple of things but couldnt. Thanks

If you are unfamiliar with GIMP, use Microsoft Paint, which comes with all flavors of Windows. Simply open both the screenshot and the color bar in separate instances of “Paint,” then copy & paste the color bar into the screenshot you desire to put the legend. Finally, move it to the desired position.



Must be obvious to me but no one else, you 2 are talking different things here.

He want to display those symbols as if they are actually in the chart software

He asked " its not showing currency label on right. what changes in MT5 has to be done in setting"

While you are telling him how to do it as a screenshot, and he probably has no idea what GIMP is either

Hence, he has not responded, my good deed for the day :grinning:


I thought that might be the case, but I answer the question “as is” rather than try to second guess.

This version of the MT5 indicator doesn’t show the color legend. That’s just the way it is. Perhaps in the future it will. My version has it, but it’s integrated into a bunch of other stuff that I am not giving away, and I am not going to spend the time pulling that out when all a person has to do is hover over each line to see what currency it represents. :slight_smile:

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am i crazy, or does it appear that the usd is trying to weaken? doesnt fit with the method, or my own post about us/nz. i am watching.

Hi @Tigranes, I find that a direct strength powered Oscillator gives a far more accurate reading of what both currencies in a pair are upto. As you can see from the Chart below, it was clearly visible that it was the NZD that collapsed back on the 17th April and that it is the current spike in the USD that is driving the price today (2nd May UTC+10). As I have shown many, many times in this thread the cross over is where the action can be found.

The Indicator uses the average strength from the other 5 majors against each of the currencies in this pair. It also displays when a currency pair has price going up and strength going down (vise-versa) and makes for some interesting viewing…

Have a close look at price action against both currencies strength and weakness values.

(NZDUSD 1 Hour) Above

(USDCHF 1 Hour) Once again, I just prefer the simple, uncluttered bias when I am playing this game.


Can u guys take your EA/MT5 discussion offline please. This is not the platform for that discussion.

the nzd is last on the rankings us was first now tied for the same spot. how is this off topic? it is a discussion on how to use the method.


The title of the thread is “Trading the Trend with Strong Weak Analysis.” The EA I provided calculates Dennis’ numbers using Dennis’ algorithm. So, like where are you coming from, man?

I pulled these number 45 min before the daily close, there was a lot of interday movement but in the end, everything is pretty much where it was this time yesterday


Happy Friday folks.

I’ve been working on an interpretation of Dennis’ algorithm. The primary benefit of the EA version is that you can visually see the tendencies over prior periods. Another benefit: you can run the exact same algorithm on the H1 time scale. We’re still measuring price to the 200SMA for the JPY pairs group, and separating exactly the same way, but just on a shorter time frame. This might be used for shorter term trades, or to double check the values on the H4 time frame.

Here I have plotted individual lines between the current value and the value 8 periods ago. I believe this is simply one of the formulas for momentum (the other uses division). The idea with S/W is to pit the strong against the weak. In this case, the “strong” is any currency that is increasing (positive slope) e.g. CAD, NZD, AUD and “weak” is any currency that is decreasing (negative slope) (e.g. GBP, USD, EUR).

Any constructive thoughts or suggestions?

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Good idea, I have an Idea, how about having a 0 starting point and see which currency moves within the day? Is it possible?


Thanks for the post, just a couple of queries if ya don’t mind me asking.

I remember you talking about crossovers earlier in thread, but these seem to happen very frequently and could cause a lot of ‘noise’, do you use other fltering techniques/indicators for taking a trade?

Also, the indicator in the image looks interesting, is it downloadable from mt4 (or any other site) or is it your own developed indicator? No worries if so.


These already exist in the hundreds, some are great, just find one that suits yourself, read the price action, that’s the only FILTER required, HINT: if it’s going up, Buy, if it’s going down, Sell,

but re-invent the wheel if you must, good luck


Updated version. Now has currency color map.

The indicator is named in honor of Dennis, and his method, without whom this thread would not exist.

Dennis_SW_HOWTO.pdf (54.5 KB)

Dennis_SW.ex5 (88.3 KB)

GBP is catching everyone off guard, how long before it makes it to top of Dennis chart?

Yes how long, thrilled to be here, keen to read and learn, green pips to all.