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walterw

Introduction to Inter-Currency Analysis

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OK, I'll bite - how are these constructed and is it possible to get more info?
If you're willing to share I'd be interested in the excel version as well.

 

Thanks to all you guys for your insight. :)

 

brownsfan and MC, you can look over the zip file attached by 3monkeys in the above post. The files, calculations and other information are all in there.

 

ENJOY!

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Well this is absolutely cool... good interaction ¡¡ you got my blessing Z ¡¡ jejeje.. as always your inputs have premium quality and I really apreciate a lot what you are sharing here ¡¡

 

I believe this inter-currency analisis its a gorgeous tool to give solid trend context... whatever its the normal trading strategy a trader has, adding this solid trend context its a good call...

 

Lets keep interacting on this thread about this type of analisis, by no means its needed only to be the chimps alternative... even I will be testing this new tools shared here...

 

Thanks a lot, once again we can enjoy TL's high quality interaction, cheers Walter.

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A BIG thanks to Ztrader and 3Monkeys for supplying the info for us.:applaud:

 

Hey Walter, now that we're up and running I'm looking forward to see where your taking us to on this. :thumbs up:

 

Cheers

 

Blu-Ray

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A BIG thanks to Ztrader and 3Monkeys for supplying the info for us.:applaud:

 

Hey Walter, now that we're up and running I'm looking forward to see where your taking us to on this. :thumbs up:

 

Cheers

 

Blu-Ray

 

Good point Blu-Ray... basicly I am working on my classic trend scalps and divergence scalps (m`s) and inserting them in the context of Inter-Currency analisis... my actual issue right now is that I was trying to do al my timing etc criterias right on topgun... but I still find much superb our vma tools at NT.... so I will probably end up using both softwares simultaneously at this point... one (TG) for trend context using inter-currency analisis and the other (NT) for old classic scalping price action readings... so I will be posting soon on this... cheers Walter.

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As usual, nice chart illustrations, Walter. Some have already seen the merits of using currency strength and weakness or as you called it, inter-currency analysis. Although, the our tools and approach may differ, the commonality is capitalizing the strength and weakness of each currency in our respective trading methodology. In the end, the objective is to make consistent profit with it. So, keep it coming.

 

ENJOY!

 

ztrader

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Here is how Currency Strength Index and/or fxmeter can be used as shown in 3 of my trades during 6/12/08 Asian/Tokyo Session. Though this session is not popular among most forex traders there are opportunities during these hours by applying market timing together with currency strength/weakness tool. My traders IQ and technical knowledge is way down compare to most of you, so I keep my method simple.

 

At Sydney session, I usually do a quick glance at the Excel file and check for some S/W scores, get charts ready for identified pairs, then take a nap or watch a movie. By the time Tokyo gets going, most pairs have pushed for enough tradeable range and the excel graph starts moving actively to give obvious signal of strength and weakness. USD kept the 7 plus score throughout the first 2-3 hours which resulted in substantial pips profit on the pairs I traded. By employing the strength/weakness scan, selected trades gain speed and momentum in an hour or so, without using any oscillator indicator, as shown on the attached charts.

 

Caution: This type of BIG trades do not occur at all times during Tokyo or other sessions. However, with proper knowledge of nuances on how to use the tools, you will find opportunities for profit in almost all sessions. I suggest you observe it and demo trade with it. Find how you can effectively employ it with your trading methodology.

 

ENJOY and trade well.

 

ztrader

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Hi ztrader,

 

I wonder if you could offer some help with MT4. I have installed the WHC version and it is working but when I try and use the currency strength Excel file I get a message "Remote data not accessible, Start MT4.EXE" When I click on OK it says the program is missing. Now I know that the WHC platform is called "terminal" and I have changed the syntax in Excel to reference that but is has not worked. I have also changed the exe name to MT4 but it is still not working.

 

Is it possible to change the database reference in the Excel file ? Only I could not find the code that has it in or maybe something else may help.

 

Any suggestions are most welcome

 

Thanks

 

 

Paul

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Paul,

 

The one I use is my modified version of the commercial copy. The creator has now replaced the Excel format with a full blown software which he is selling, I believe, at about 200 Canadian Dollars. There is also a similar freeware of the original Excel version available somewhere. I will look for the link and check if the site is still working. Please check your private message inbox.

 

I have attached screenshot of the two softwares. Now, you'll know more why I like the excel format better. :)

 

ENJOY!

 

ztrader

 

 

ztrader

 

Can you PM your version as well. I particularly interested in YM. I've downloaded the xls file posted here but it doesn't quite make sense to me, column P specifically. Also it seems the formula Bid-Low / Low simply measures distance away from the daily low. A weak signal reading of 1 would trip if bid = low (or in the case of YM, Trade = Low). I'm definitely missing something. Your version with YM would help a lot.

 

thanks

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Here is how Currency Strength Index and/or fxmeter can be used as shown in 3 of my trades during 6/12/08 Asian/Tokyo Session. Though this session is not popular among most forex traders there are opportunities during these hours by applying market timing together with currency strength/weakness tool. My traders IQ and technical knowledge is way down compare to most of you, so I keep my method simple.

 

At Sydney session, I usually do a quick glance at the Excel file and check for some S/W scores, get charts ready for identified pairs, then take a nap or watch a movie. By the time Tokyo gets going, most pairs have pushed for enough tradeable range and the excel graph starts moving actively to give obvious signal of strength and weakness. USD kept the 7 plus score throughout the first 2-3 hours which resulted in substantial pips profit on the pairs I traded. By employing the strength/weakness scan, selected trades gain speed and momentum in an hour or so, without using any oscillator indicator, as shown on the attached charts.

 

Caution: This type of BIG trades do not occur at all times during Tokyo or other sessions. However, with proper knowledge of nuances on how to use the tools, you will find opportunities for profit in almost all sessions. I suggest you observe it and demo trade with it. Find how you can effectively employ it with your trading methodology.

 

ENJOY and trade well.

 

ztrader

 

nice stuff EJ ¡¡ did you had does levels of scores previous to the big move ? or at least similar ? cheers Walter.

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nice stuff EJ ¡¡ did you had does levels of scores previous to the big move ? or at least similar ? cheers Walter.

 

It would depend on which pair. Let's take AUDUSD since it is not on my focus pairs. AUD was already in the weak zone [score=2] at the day open. USD started to pickup strength reading [upper 6 score] as it approached Tokyo open. All I do then was open the AUDUSD chart, applied the template, saw the right setup, took the short at the 3rd 5minute bar [Tokyo Open]. USD hit the 7.0 and the acceleration followed. Please remember that the Strength/Weakness excel or mq4 format is a tool and not a trading system in itself.

 

BTW, since you have camtasia you may want to record the real time level changes on both formats together with FxMM. I would be curious to see how in synch they are.

 

ENJOY!

 

ztrader

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Here is another example of how the Currency Strength and Weakness can be used to anticipate potential high probability move on currency pairs [not normally traded]. CAD has been weak early on the US session [6/13]. GBP hit the 7 mark and with proper chart profile setup, LONG trade was taken on 3rd bar at 17:00 hour. There, one has the opportunity to grab 50-100 pips in less than an hour. Notice that the price did not move against the trade at all resulting from acceleration which is an added beauty of this tool. Please note that GBPCAD has wide spread of 10-12 pips and may not be available with your broker.

 

ENJOY!

 

ztrader

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Nice EJ ¡¡ I will try to do some testings this week into it... and compare it with fxmm performance as well... I was wondering if the fxmeter soft would actually plot some historical data of w/s... seems looking at the picture you posted before... cheers Walter.

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Nice EJ ¡¡ I will try to do some testings this week into it... and compare it with fxmm performance as well... I was wondering if the fxmeter soft would actually plot some historical data of w/s... seems looking at the picture you posted before... cheers Walter.

 

Thanks Walter. Take a look at these and let me know if these historical lines will work out for you.

 

ENJOY!

 

EJ

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ztrader,

 

When using the Excel version what sort of setup are you looking for to take a trade ?

 

 

 

Paul

 

Paul,

 

The Currency Strength/Weakness meter in Excel and/or digital format function the same way. The digital version was coded based on the Excel format. I just prefer the Excel version for its better graphing and visibility. Although at times, I put the digital version on one chart. You will be looking for the same strength vs weakness score levels then check your chart for the affected pairs for trade entry timing.

 

ENJOY!

 

ztrader

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Thanks ztrader, I have it working fully now using WHC and I will also be running a version using IB data for realtime Bid and Ask (IB dont have HOD or LOD) but I noted a comment that it should not be used as a strategy in its own entirety and that is why I was curious as to what else is needed to enter a trade.

 

 

Paul

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Thanks Walter. Take a look at these and let me know if these historical lines will work out for you.

 

ENJOY!

 

EJ

 

 

Well those are very sweet lines... cant be more clear than that... would they be shareable EJ ? ... thanks Walter.

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Well those are very sweet lines... cant be more clear than that... would they be shareable EJ ? ... thanks Walter.

 

Walter,

 

I emailed them to you earlier for you to evaluate. Please check you gmail inbox. Thanks. ... EJ

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