Trading the Trend with Strong Weak Analysis

Thank you. Do you do your SW analysis every day? If so, what happens if the trade doesn’t trigger by the end of the day and the rankings have changed by the time it does?

Hi Tony

I am always curious as to how others operate, may I know how you find the entry after a SW trade is signaled? I have sometimes waited as 4X does for a pullback to SR level, but then sometimes it doesn’t happen, price keeps going like a freight train, and I feel like I missed it and don’t want to chase.

As I said always curious to hear how others do it …

I am probably not the best person to describe this as SW is not central to what I do. Have always enjoyed reading chart patterns but the SW approach highlights something that is moving. Dennis has shown that a further 100 pips is a commonly achievable target. I prefer to use the next clear S/R zone as the target so I need to be able to get in with a sufficiently attractive RR ratio. If something doesn’t pull back I will look for a break especially of the daily, weekly, or quarterly high/low to see if that presents an opportunity. EUR crosses a good example recently. You are right though you usually cant get onto a speeding train safely and am happy to let them go

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Those last days were really weird. Warning signs coming from everywhere and stock market up. For me, the only thing that made sense yesterday was gold price.

Now the question about entry point is probably where there will be much debate. Sometimes it was too late to catch that train, but that allowed to give extra attention to those pairs.

Like the euro now. Who can short it now without feeling deep inside that this is not the right thing to do.
EURUSD is on a vertical downtrend.
After 300 pips from the last entry point for me (3/2, 100dma), one could always sell after the price touches a 5 ema, but still, that’s not a good idea. In my opinion what made me enter euro late and make some pips is the fears of low growth in europe and usd skyrocketing.

Now, what would you be looking as a entry sign on NZDUSD?
China is pumping money, Dolar will propably keep going up, and the economy of the contries around China are not in good shape. With that in mind Maybe AUD will soon became a SW.

I presume SW means Strong /Weak?

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Yup correct

Hello Dennis. I am trying to make my own spreadsheet, but I am getting different results compared to yours. Are you still using the formula: (Closing price - 4h 200sma)/Closing price ?

Hi @Bransor, that formula looks right, have you definitely taken the prices off the correct 4h candle? Just did the calcs myself and they are very similar to Dennis’ (slight broker difference).

I use FXCM data feed, which should be the same as Dennis. I take the last 4h candle, the one right before the change of day. I just hover my cursor on the candle before the first 4h candle of the 20 of Feb

Hello everyone, I’ve been following this thread for some time now, I think there is something crucial about this strategy that we need to discuss.
I’ve noticed that, anytime we have a strong and weak ranking, it’s always at s supply and demand zone, it’s always at the point of reversal, I don’t fully understand how Dennis manage to handle this but I’ve noticed a lot of strong/weak pairs revers within a short period after it has been ranked.
How do you guys manage the fact that most strong and weak pairs forms at strong supply and demand zones.
I’ve wonder if it’s best to trade reversal based on strong and weak ranking, but the thing is, I don’t feel comfortable trading against the trend

You don’t take the trade when you see the rankings. The rankings tell you what pair to look at any given day. You then choose how to enter, and 4ex_trader gave an example.

Top sw trades will always look like you should do the opposite when you look at the chart, but all we want is 100pips more. And so far it is catching that often.

As far as I can see, the only way to enter is by ignoring supply and demand.
Otherwise, if you are to take supply and demand zones into consideration, you will be considering trading a reversal.

Can’t you just wait for a break and retest?

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I’ve tried, but in many cases, after the pull back the trade had already left the strongest and the weakest position.

if you stayed in the NZDUSD trade you are being rewarded with another 50 pips today

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Hello Dennis, really want to know, what are your strategies for exiting the trade after it has hit the 100pip mark

The USD is a long way North of home… Check the W1 Chart to see what happens next…

Sink rapidly back down the order from here… Clockwork Dollar.

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My results are more comparable this time, but the small difference makes me think I am doing something wrong. I’ll attach a screenshot to show which candle I am using to get my closing price.

We have the same strategy. While some are profitable with, other are loosing consistenly. I don’t nkow why ?

When whe have a new SW what i do is this : Because New York close is 11PM in my contry (i have a fulltime job in day) i will wake up in the nigth and ;
1 - Set Pending order at close of the previous day
2 - Set SL at 2xATR(14)
3 - Set TP at 4xATR(14)
4 - Set SL to other running pairs and pray.

If price when to 2xATR(14) in my favor then i will move to break even The
Trail my SL by 10%
Until my TP is HIT

Rename this file to SW.mq4 to have this indicator based on Dennis strategy
SW.txt (8.4 KB)

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