Hi Dennis, this is great information and shows on the trading in your charts. Could you give an example of how you calculate the strengths of the currencies versus each other?
it’s in one of his very first posts in this thread
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Top Trade NZDGBP hit another new low but finished with a pretty good reversal, one day is not a trend change but I would look for this to pull back a bit more then we will see how it reacts to overhead resistance
Thank you for posting this.
Are these the same numbers you are looking at for tomorrow? Love following your posts.
Great, thanks I found it and better examples further along; just wanted to understand the workings
Pull back in the GBPNZD* continued today and we see price finding resistance at the 200ma on the 1hr chart
I’m out of this trade, but do you think it would be a good time to get short again in as its hit the 200MA on a one hour chart?
Based upon SW analysis, EUR is taking over the #8 spot, and the difference between NZD and EUR is ~2.07 (reading taken an hour before close, so caveat emptor). GBPNZD is now less than the 2.0% metric, so you may want to consider that before going short.
2.07 for EURNZD is above 2, but looking at the H4 chart of EURNZD, I see it ranging. I’m not sure if NZD is finished tanking and will continue to gain strength, or if this is a real reversal. I personally am going to wait until I see some sort of confirmation.
Just my $0.02.
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GBP is no longer our weakest currency and completely reversed all gains in the GBPNZD* in just two days. But see what happened to this pair back in June, could we have a repeat of that pattern, I am keeping an eye on this one, price is above the 200ma on the 1hr chart, breaking below that 200ma would be a good entry point for another short.
We do have a new Top Trade EURNZD* I will use Wednesday’s closing price as our entry for tracking
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Under the “dumb luck” category:
I squeezed 143 pips out of GBPNZD long.
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Another all-time high for the Nasdaq and breakout move in the lagging Russell 2000, This means that the markets are in full risk-on mode but most of the currency market is in neutral, as evident in our SW rankings where only 0.29% separate #2 through #6
I will take Forex trades when I see a great setup but right now most the action is not in Forex
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Congrats, in this type of market take profits when you can
Agreed. I’ll be looking at other markets.
Hi Dennis,
Would you or anyone else on the forum know any good places to learn about the stock market or bitcoin for free that might have a course or good educational content? Since you won’t be taking trades until you see a great setup.
Cheers Shane
This is what a busted trade looks like, EURNZD gave us false hope with that big red candle off the 200 ma on the 1hr chart but the next two hours would have been painful if you were short and likely would have hit your stop loss. How you handle bad trades is more important than how you handle the winners,
On the plus side 5 of the last 7 trades have been up +200 pips, I will deal with a loser now and then with that kind of win/loss ratio
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I am not saying I am giving up on FOREX , it is just we go through periods when the markets are not moving and summer is one of those periods, things should pickup come September, until then be patient ,don’t force trades but still follow the market, we want to be ready when things heat up
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Any thoughts on a metric by which one might gauge the strength of the Forex market as a whole using your numbers?
I was thinking something like the top 3 currency pairs being greater than 2.0% spread. This might also be accounted by the top 1 currency pair being > 3.0, because that would usually entail the #2 and #3 positions are 2.0% or so.
Just thinking aloud. Looking at a chart of the individual currencies, it’s pretty easy to see at a glance when all the individual currencies are compressed together.
Except for weakness in the Pound, the rest of the market is clump together rather tightly. We do have a new Top Trade GBPUSD* and while it falls short of our +2% separation, it does have a nice downtrend and hit a new low on Friday,
The US dollar since being #8 on Jun 28th has been on a slow rise to the top, this has happened all the while the Fed hinting of a rate cut, that normally would send a currency lower but in this upside-down world that no longer is the case. If you do take this trade, know the market reaction should the Fed not lower rates is unpredictable,
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