CHF is strongest and JPY is the weakest, and there is more than 2% difference in the two SW values.
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The basic rule is to open a trade on the day a new pair takes the first place… but as Dennis stated before it is up to you: what do you prefer.
I am following this topic since a few months and I am following the basic rule at the moment: open when a pair becomes top pair, and use the view Dennis has on the current market condition.
But you can also use the signal as a heads up: use the nr 1 pair as “best pair” to watch and create your own entry point: for example: wait for a pullback (to a certain moving average eg).
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While the rest of the market is in consolidation mode our Top Trade CHFJPY just keeps on giving. If you are in the trade I hope you are enjoying the ride, if not in the trade I will try to identify a secondary entry point on a pullback
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Thank you Sir !
Another small gain for Top Trade CHFJPY as we close in on the +200 pip level
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Love this thread.
FWIW, I have been out of CHF/JPY but agree its top trade for another week - have buy order set above Friday’s high, TSL below Friday’s low: 2% account capital risk.
Also have similar pyramid orders set at +1%, +2% and +3%.
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It was a great week for Top Trade CHFJPY but Thursday we had a small pin bar reversal with confirmation on Friday, there is nothing on the weekly chart to suggest this move is over, after a big run we might just need to pull back a bit before the next leg up. I will be looking for support at the 200 ma on the 1hr chart for a re-entry. The rest of the market is doing nothing so be greatfull for this one trade
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Not much happening today as most US markets were closed
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it could have been, but it has failed to hold that rally and price is now below the 200ma , from here a break back above the 200 ma would be the next entry point.
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big-time consolidation, the bottom list is the 7 pairs that I do most of my trading in and as you can see there is just no separation
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Yup I see that. Thank you for your effort, I’m going to make a concerted effort in using your info this year.
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In our Top Trade CHFJPY we got a little Pin Bar reversal, price still is below the 200 on the 1hr chart but if we can clear that then at least a test of last weeks high should be in play. Nice bounce in GBP, this is one to watch
In our Top Trade CHFJPY we got a little Pin Bar reversal, price still is below the 200 on the 1hr chart but if we can clear that then at least a test of last weeks high should be in play. Nice bounce in GBP, this is one to watch
This strategy has been posted previously and I’m revisiting the concept for traders that have recently joined the Babypips Forums… While the market is slow and very few opportunities appear to be on offer this week, I will point out another strategy that can be used with Dennis’s data.
At a glance of Dennis’s Strong Weak Ranking Chart the USD appears to be far stronger and strengthening over say the weakest currency the JPY. If you study the percentage values you will realize that the exact opposite is the reality… Since the 20th January USD has actually weakened against the JPY…
USD 20th - 0.86% | USD 21st - 0.55% | USD 22nd - 0.57% against the base JPY 0.00% Value
(See Below)
Now if you look at the USDJPY on the 1 Hour Chart (See Below) you can see that has created some opportunities to profit even while the currency markets are in consolidation…
Also have a look at GBPAUD, EURJPY and maybe a few other pairs and apply the same theory and see if you could have profited over the last say 5 - 7 days… from intra SWA opportunities.
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That`s true. USDJPY is a perfect example of this logic, as NZDUSD and CHFJPY.
Personally I`m using the SW as a Watch list for:
- See the movements of the pairs on the time, and not just on the last day.
I’m using different colors on each pair so I can visually track them. - Find pairs that are
trendingto the extremes, or extremes that are losing steam. - And finally, to check the extremes as a moment of either go with the trend, or find overbought oversold pairs.
Again, those numbers relate to the relative distance from the 4H 200MA, if I’m correct, so they show the bigger picture.
But when to enter and when to exit is the question: devil is on the detail!
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I’ve created a simple indicator on Trading View that will graph the pairs using Dennis’s parameters (or pretty close to them). The indicator will reflect the time period selected on the chart, which is convenient for seeing what is happening on shorter intervals.
I mostly use the Daily time period for mimicking Dennis’s spreadsheet. On the same layout, I can also view the chart of the actual strong weak pair that’s in play. Almost always the current SW is entering Overbought/Oversold territory and I use it’s exit from that state, along with any support and resistance lines in play to close or reverse trades. Catching the reversal of the SW can provide some great opportunities also.
Using the graph to trade converging and diverging pairs has been difficult and I don’t really see an advantage over other “price action” methodologies. What does stand out is trading the actual SW and entering the way Dennis does. It’s easily identifiable and when used with prudent SL/TP strategies, I’ve found that even on the pairs with a 50/50 win ratio, the winners are a lot bigger than the losers.
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The market keeps getting tighter but we do have a new Top SW Trade, AUDCHF* not a lot of separation and nowhere near our 2% rule but the long term chart shows this could be rolling over on way to another new low,
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Hi scout. That’s an interesting indicator. Would you mind to share it? I tried to search for it in TradingView but didn’t find this specific one (that compares majors with JPY).
Some very good recent posts that emphasise (especially for those new to the thread) that SW analysis is not itself a trading technique but requires reliable strats to be wrapped around it. Always enjoy this thread