Hi Dennis.
Can I join you?
Well, I’m in.
And I mean…
I…
Am…
In…
Thank you!
Mike
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you have to add it to your chart as an indicator, and set the level to 200.
FXCM:
Open 4H chart, select Insert=> Add Indicator=> MVA. Then select parameters like this:
Select tab “Data Source” and check that it is on “Close”
On MT4:
Open 4H chart, select “indicators” (from example from the “Insert” tab on main menu), => “Trend”, => “Moving Average”. Then select parameters like this:
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Thanks for this! I mean more the chart that has the exact final 4 hr 200 sma close price.
FXCM:
You can either put your cursor over the last 4H candle for the day and click left button and a box will open with all the data.
Or if you want the data as a table then click the button in the red circle here:
Select “table” and the chart will reopen in table form and you can pick the close for the last 4H session of the day as follows:
In MT4 you can select the “Data Window” from the “View” menu on the main toolbar. Hold your cursor over the appropriate 4H bar and the data will appear in the data window:
2 Likes
Ahh I see, I might want to try that out myself lol
Awesome! Thank you very much!!!
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Aloha Dennis,
I mentioned I’d be looking in on your thread, and here I am. I’ll be setting up charts to trade the 200MA with the top 8 on the Forex Hit Parade, and I’m looking forward to good results.
Question: If I see a good bounce from or breakthrough of the 200, but miss the first couple of candles, how far along the trade do you think it’s safe to enter and come out with some profit? I know it will vary from trade to trade, but can you offer some good guidelines for trend continuation? I’m aware of such reversal or retracement signals as candles getting smaller and price beginning to curve in the opposite direction - but what is your top signal or signals for trend continuation?
Thanks,
Norm
Wow, these Strong Weak trades are again acting like in the old days ( 3 months ago) NZDCAD* after a little pullback explodes lower topping +300 pips. and GBPCAD* closes in on 500 pips
Look at the Yen sitting at #2 just a week after being #8, as I have pointed out many times the Yen likes to ping pong between 1 and 8
Hello Norman
We might need to do a row call just to let everyone tell us where they are from, I bet we have most of the globe covered.
but to your question, look at the NZDCAD* 1hr chart with 200 ma. That pinbar reversal followed by today’s big down candle seen on the daily chart, that move start at the 1hr 200 ma. In this case, the price stayed near the 200ma for about 15 1hr candles, that is a long time which is why when it broke it broke big,
As far as when or if to jump in is up to you, I try to identify high probability trades and the 200ma on 1hr charts have worked well in the past for secondary entry point on our Top SW Trades.
Good luck and welcome to the thread
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Thanks Dennis,
I see what you’re saying.
Based on my Aloha, I think you can conclude that you’ve got at least a little pebble in the middle of the Pacific covered. Thanks for the personal help and the personal touch.
Good to be on board.
Take care,
Norm
2 Likes
Hi Dennis I did reentry myself at 6am yesterday GMT and I managed to make another 60 pips I saw that big gap… I am thinking to reentry now at 11 am GMT (I live in UK) as it looks like there is a rejection at the 34ma. We see… there is another half an hour to go. By the way You mention about paying attention at the 200 ma, what about the 34 one? Thank You and have a nice week-end
The 34 ma you see on my Daily chart is a proxy for the 200ma on the 4hr chart, I watch price action in relation to the 200ma on the Daily, 4hr and 1hr chart. I could add a 7 day ma to my daily chart as a proxy to the 200 ma on the 1hr chart but then the chart starts to get to busy, I might just take that 34 ma down as it just confuses everyone
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The yen is strong again today and will likely be #1 by end of day, just 7 trading days ago Yen was #8. as I have noted many times Yen likes to move back and forth from Strong to Weak more than any other currency. Only 1 of the last 5 Top SW Yen trades have hit the 100+ pip mark. Just keep that in mind if you choose to trade the Yen using my SW rankings
Dennis has mentioned that the yen tends to bounce between #1 and #8 in the Rankings. A quick glance at the Yen Index shows vividly how it bounces within a range.
Click on the chart to enlarge it.
There is more than one yen index, and each uses its own basket of currencies to weigh against the yen. So, the various indexes differ in the values that they tabulate and graph. The one displayed above comes from the broker IFC Markets. No endorsement of this broker is implied.
At the bottom of the graphic, you will see the currencies (but not their individual weightings) which IFC factors into their index. Are we to infer that the 6 majors in the IFC basket are equally weighted? I’m not sure.
It’s apparent from some of the questions and comments raised by newcomers to this thread, that some folks are confused about how Dennis’ methodology can use the yen as the “baseline” against which all the other currencies are rated, when the baseline itself zips up and down (as shown in the graphic). The answer to that is simply: Each day, at the close, Dennis’ methodology looks at the value of each major currency compared to the JPY at one point in time (5 pm New York time), without regard to where those prices have been in the past. So, the JPY baseline really should be viewed as a discrete price-point, not as a line.
Dennis mentioned that the yen is strong today. The tall green candle at the far right on the chart above depicts what Dennis said.
3 Likes
Thanks, always a very clear answer. I was thinking of getting rid of both MA but having seen and checked a few charts I am starting to convince myself that the 200 MA can be very useful for checking a possible bounce for reentering a trade on the 1HR or 4HR, even if watching a PA would be enough if probably understood, the 200 MA becomes like an added bonus to the PA. as long the strength of the currency is still there of course. Thanks again Dennis you are very helpful.
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I keep getting asked how to do a strong weak rankings, so here is the video ( if I had only copy righted this)
all you regulars feel free to direct newbies to this post
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Is there a benefit of doing this more than once per day? can it supply a reasonably accurate snapshot of currency pairs at any given time… the reason I ask is that I trade the around the Londond session from Australia with pivots and this could help with confluence. Although I trade smaller timeframes, 30-1hr
Thanks
Hey @mike007007 I’m a Melbounite… A good reason for Dennis’s calculation time (EOD US Session) is the Market tends to be in its least volatile state. Wellington (NZ) only is open for an hour or two… so the markets are generally not being pushed and pulled…
I use a system similar to @PipPhil, using the USD and JPY as the constants. I find the USD formula has less volatility than using the JPY formula… I have tried the SW strategy using lower TF’s, right down to the 15 min (MA100 / 1H), WMA50 / 15M) etc… etc… even using the VIDYA to encapsulate volatility (See below)
edit: Just checked chart GBPCAD was a ST Buy at 9.30pm 21/02/2018, +85 pips) it worked…
I experimented with this strategy along with another member here a few months back via PM with reasonable results (80ish %) grabbing 11 - 20 pips per move (twice a day 9.30am / 9.30pm AEST) as opposed to the hundreds of pips that Dennis’s strategy bags each position…
Unfortunately I could not get the same results as the MA 200 / 4H strategy that Dennis has successfully achieved over the long term.
But hey, give it a crack, you may have a different way of applying the shorter strategy that will give a better result.
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Hi TWB, thanks for your reply, Brisbane here!
Interesting observation, Specifically I am trying to add confluence to my entries at key pivot levels, although I am having success I was hoping to refine it further. As its the strength of the currency that what pushes it past my entry, so my thinking was to measure the strength specifically against each pair just before I pull the trigger on the key entry area, You can get MT4 indicators but its not clear what the readings are based on.
Thankyou