thread: Recent Strength indicator

Hey,
Have you ever noticed the OverlayCharts indior from forex-tsd's elite segment? It permits you to show prices for multiple currencies on the exact same chart. How would you compare this with your latest strength indior? Do you believe that it provides the exact same information that is basic, or are they intrinsically different?

Mfurlend,

Are you speaking to the indy posted in http://www.forex-tsd.com/indiors-met...tml#post218389? If so, I think that it's more akin to the Prices indy I submitted here, than Power.

Recent Strength plots a weighted average of all pairs that comprise a specific currency in a single line.

David

I must have been more apparent:
I often have a basket of currencies open and I would love to shut them upon an unusually big divergence (if I am in profit).

For example, imagine I went on EUR/USD and short on GBP/USD in the same time. These two pairs are all correlated so after a few hours one order will typically be upward and another will probably be down.

Sometimes, however, both orders will be in profit. As soon as they are equally in profit enough I would love to shut them equally.

I have been attempting to on decide what to use to measure in profit , and it appears to me that either your recent strength indior or even the overlay chart indior might be the solution.

I would love to hear some ideas on this.

Sorry I should have been clear:....

Given that triangular equilibrium must be preserved, how can being concurrently long EU and short GU differ from only being (doubly) long EG? (E/U x U/G = E/G)

Hence you may tell to what degree EU and GU are positively correlated by taking a look at a EG chart. 100% positive correlation could signify the chart moved .

The first screenshot (of the Recent Prices indy) shows a H1 plot of EU, GU and EG. Since it plots% gaps, the composite EG (white line) is the gap between EU (salmon pink) and GU (red). Lines have been smoothed by employing a SMA(4). When EU rises at a larger rate than GU, the white line rises; when GU rises at a larger rate than EU, the white line drops.

The second screenshot (of this Recent Power indy) shows the composite EUR and GBP plots. Every line is a weighted average of all the EUR and GBP currencies, respectively, provided by my own br0ker. If the significance was perfect, the traces would rise and fall together, at the same angles, all of the way across the chart.

Your egy is going to likely be profitable to every extent an equivalent EG egy would be profitable. The concept that having offers double the opportunity to profit is flawed IMO. It is going to fail unless each position entails some kind of edge; to contribute to line, each position should be profitable in its own right. I've attempted to create a point many times in the'nedging' threads. I guess all this is stating the obvious, but it is wonderful how many folk can not see it.

I trade the most powerful currency against the weakest as denoted by the D1 plot of this strength indy. Trading significantly correlated currencies improves the probability of ching the cleanest moves at the pair. I then use simple tactics to discover low risk entries on lower TFs, and trade the move. I've explained this elsewhere. It is the most profitable strategy that I've managed to locate in my 4 decades of research. It has its defects; like any trend following method it's murdered by sideways movement, but trading negative correlation reduces this possibility; along with the D1 plots have a tendency to maintain their leadership long enough, on average, allegedly because of (ideally strong ) macroeconomic explanations.

Undoubtedly the strength indy may be used in many different ways. I've discussed some of those previously in this thread. The only way to find something that works is to test it for yourself, alas. You might discover ideas by using the FF search engine to discover threads with the phrase'basket' in their name.

Sorry, but that's the best I can do. Once I discovered my method of trading profitably, I gave up on trying to discover methods of employing the indy.

David

Hi Andy,

Thanks for your wonderful Recent Power indior. It very well might be the last missing piece for my trading system . Coupled with a number of indy use,this indy has become the core of my trading system. 'm pleased to let u know that u gave us a masterpiece am forever grateful.

I've read through all posts on this thread, I have noticed recommendations made towards improving the indy,especially on having the indy issue alerts.Am pleased to let you know that the indy is ex termly profitably on lower TFs, more that I thought.

Considering H5,H15,H30,H1,H4 timeflames.I have found when a specific currency is dominant appearing at the uppermost three currencies plotted at any given moment, then this currency is said to have dominant advantage.

Again considering H5,H15,H30,H1,H4 timeflames.I have found when a specific currency is dominant appearing at the lowermost three currencies plotted at any given moment, then this currency has been believed to have a dominantly week strength.Therefore a short-term trade could be considered contrary to the strong and weak currency when day trading. (Combination of dominant strong and dominant week currency across the above timeflames then defines a Pair to exchange ). Using SR indy and a trend confirmation indy these transactions have a good risk to benefit ratio usually are high probability trades.

My particular request would be to have the indy issue alerts when these dominant currency are recognized, i.e EURUSD short or EURUSD long.These alarms will eliminate the annoyance to sit down watch the indy match the description above.

Previous post recommendations to have alarms on this indy have never been possible because of more complicated issues that were discussed.However now that every currency could be recognized by colour,I guess this may be achieved by matching a specific colour on the above timeflames having a dominant colour representing a currency.

Referring to previous post # 146 you indied that If somebody can come up with layout specifics for creating meaningful signs, then I will think about the possibility of adding alerts in a later release.... Kindly consider this request.

Great Trading
Benji

Hi Andy, ....

Thanks for your lovely Recent Strength indior. It very well may be the last missing piece to my trading system .

Hi Benji,

Many thanks for your post.

I shall consider your ideas when I have some spare time.

Best wishes,
David (not sure who Andy is )

Hi David,

My sincere apologies for missing out on your name on my prior article. . .it shall not be replicated again thank you for your consideration.

I feel obliged to let you have tools that necessitated my petition. This tools will aid you comprehend the logic to possess Resent Strength indy issue alerts on time flames that are lower.

FXI=PivotPoints. This indy plots SR traces on my charts every day.It does so with such precision,I use this to identify entry exit targets.

Identifier. This indy is a trend identifier. This affirms the direction of a trend and help filter. I would think about a trade when arrows reveals and Both D1 H4 agrees one direction, or whenever arrows H4, H1 M15, M5 agree and reveals one direction.

In a nut shell, the potency indy identifies a high probability pair to exchange. This comes with momentum to push a pair to exit targets. Identifier then defines trend direction FXI=Pivot Points defines entry depart targets.

Without doubt Resent Strength indy have made it feasible to exchange even the dreaded cross currencies with this kind of confidence!! ....David, this indy has a bright future a head, and its priceless!!

Happy Piping
Benji
https://www.cliqforex.com/attachment...3611535994.ex4
https://www.cliqforex.com/attachment...5459874277.ex4

Hi David, ....

Hello Benji,

I've read your articles in more detail.

Please keep the following things in mind:

1. The indiors that I've posted were written for my own usage, but are available as freeware here within an'as-is, take-it-or-leave-it' basis. So they are equally useful for everybody, I attempt to keep them open minded. Various people use different trading egies, and that I do not want to customize the indior to suit one trader's requirements. Even worse, I do not want to keep a different variant of the indior for every individual. Hence you would want to describe under exactly what terms you want an alert to occur (i.e. describe exactly what you mean by a currency being dominant in rigorous mathematical terms), and convince me it had been an idea that could have universal appeal.

2. The Strength indy is quite subjective in its interpretation and usage. It is my opinion that the slopes of the plots are important, but the levels (and hence crossovers) aren't, since the plots get re-weighted and re-scaled to fit to a 0 to 100 scale (see post #7 for more information ). Simply using different parameter settings can result in different plots, despite the fact that the market prices where the plots are derived are exactly the same. Therefore when I was to add an alert facility, it would probably be on the basis that the slope of a single plot was steeper than X in an upward direction, while the slope of some other plot was steeper than Y in a downward way, on a specified period.

3. I am currently snowed under with this undertaking, which will keep me occupied for another 2-3 weeks, after which I have a backlog of asks that were other to look at. I wasn't thinking about submitting a new release of this Strength indy, as it's freeware, and paid jobs must take priority. But if you're able to clarify your petition more fully, and in a manner that fulfills the standards, then I will consider adding it into my queue of tasks.

Hope this makes sense,
David

Hi David,

I have well understood your previous article and below are some conditions I want an alert to occur, review this idea and judge if it has universal appeal.

That I don't have any programming skills so I thought to explain this graphically. See attached and see the way the indy is plotting, a common strong currency (CHF) appearing one of the upper 3 currencies across all M5,M15,M30,H1,H4 timeflames plus a week currency (USD) appearing among reduced 3 currencies across all of M5,M15,M30,H1,H4 timeflames.I consider CHF currency as #8220;dominant#8221; one of upper 3 currencies USD #8220;dominant#8221; one of reduced 3 currencies. A pair USDCHF is identified for a potential trade and an alert issued.


I have attempted to use unique configurations on Numpoints, SmoothingSMA Weights parameters and have discovered changes made to those parameters doesn't affect these dominat currencies have been exhibited by the potency indy.

Also I have done testes with distinct MT4 brokers i.e http://www.migfx.com/ whose MT4 offers ALL potential 28 pair combos involving the major currencies (AUD, CAD, CHF, EUR, GBP, JPY, NZD, USD) and FXDD who have significantly less combos pairs the indy have displayed same results as above. This means alarms will make sense to majority of MT4 brokers users.

These alarms will be utilized to detect substantial info entering from the market therefore taking timely actions in connection with short term and long term trades.

Short term traders will get an edge to recognize high probability trades and behave accordingly in great time.


Happy Piping
Benji

Really beautiful programming Hanover, on this and your other indi's.
I am so thankful also to have your Display Info indi -'til now I needed to go through the egy tester to discover the swaps.

Thanks so much for sharing

Michael

Really beautiful programming Hanover, on this and your other indi's.
I am so thankful also to have your Screen Info indi -'til today I had to go through this egy tester to find the swaps.

Thanks so much for sharing

Michael

Michael, many thanks to your comments. Glad you locate that the indys useful.

May the FX gods smile favorably upon you
David