thread: Recent Strength indicator

As I understand it correctly #8211; RS gives us an estimate of supply/demand for a currency. ....

Thanks very much for your remarks. They've given me a few new ideas.

Many thanks to the comments.

I had very substantial hopes for this particular indior (my reasons in post #20). I still find it rather useful, although they have diminished a bit.

I trade predominantly H1 candle patterns (taking S/R into consideration), therefore I begin by looking at the Recent Power (RS) H1 chart. I have the RS settings at: NumPoints = 15, BasePoint = 0, HistoricalShift = 0, SmoothingSMA = 4. The H1 chart confirms which currencies are rising, and that are falling. But it's usually just as easy to see this by considering...

David,

No matter egies/indiors which are being evolved to measure co-relation is rather demanding because the market makers utilize strong tech brains as well as super computers to plot the motions for commodity currencies that are basically part of the world's biggest casino that's frequented by wealthy people, hedge funds and investment banks in particular.

It's solely by keen observation and obtaining some experience you may try to trade the cross currencies. Seven majors are switches and they're operated in such a manner that you can not use analysis .
Microlots are best for trading those currencies. The benefits are there for a person who ignores TA and concentrates on money management. Pre-and-post major data releases will be the trigger points.

Whenever sideways or stalling moves are all happening for majors e/u, g/u simply go to the cross currencies without delay to watch the show. It had been the day for JPY and NZD to maneuver about affecting related cross currencies. E/Nzd and G/NZD pips in 4 days. As soon as the NZD/JPY have completed their volatile job, the two majors will begin ing upwards. It ought to occur in both of these days following a major data release.

PJ

Hanover, work that is fantastic.

Very usefull once you place the base point == to the opening of each market, this way you see the strength since NY open for instance. Possibly a proposal for a release would be to place it automatically.

There are a few excellent posts on the forum by forexharry, who's apparently very profitable using his very own RS-based advertising technique. If I understand him correctly, he utilizes the http://www.topgunsoftware.com/ having an e-Signal data feed. But I can not see any reason why the RS concept could not be used to achieve much the exact same result.

I analyzed TopGun software and their systems.

We have at last two scalping systems there.

FIRST system:

First on is based on MultiMap displaying in graphic form (through strength of colors) strength and weakness of currencies.

When I know what I saw the have a system of displaying the two strength/weakness of a currency AND a chosen pair. I don#8217.

There exist a #8220;magical level#8221; of power (40 and above ) indicating the next move in the retracement will probably be with 95% likelihood #8211; in last to the last/maximum/minimum.

Strength/weakness of a pair is used with Keltner channels: high odds entries are chosen when a pair is strong/weak and price touches a Keltner station (more on this later).

They worry a #8220;studying #8221; market position and this is a good practice #8211; since it improves edge ie likelihood taking into account different factors: crossing through important pivots, S/R, hi/low of previous days/weeks, multimap is their principal indior used to choose best pair.

However, I have two issues here:

The first problem: Listening to the conferences occasionally I had a feeling they do not choose the best pairs in the moment #8211; for unknown reason they choose pairs with poor benefits in RS. Why? To show the power of MMap? To make a point? Well, many systems are profitable only on statistics. The ideal choice will always be srongest-weakest - we dont know something, and they dont discuss it.

Second problem: I carefully researched their points of entry to tendencies with help of MMap #8211; and that I have an impression that they exaggerate #8211; and the signal in the MMap is LATER than point of entry #8211; therefore perhaps it's the event of mispresentation of predictive power of this tool. I saw it in many cases #8211; therefore it looks suspicious BUT #8211; I don#8217;t even have access and a possibility is that MMap works better than I presume it work.

From practical perspective #8211; there could be a lag as well as direct in a special scenario #8211; as pairs may lag from different reasons and the supply/demand to get a pair is climbing.

I believe it is a futile task trying to locate exact beginnings of a fad, it's far safer to wait for one or two confirmations.

But in 1 case it could be a good idea #8211; when one pair clearly moves against RS near important S/R level. Perhaps this filter will reveal us a stop hunting often occurring when institutional traders are searching for entry points.

In conclusion #8211; this tool is interesting. Joining it such as with #8222;pairs that lag#8221; in the moment might form a genuine killer.

SECOND system:

Scalping the euro using Keltner channels, here MMap improves probability #8211; there should be some strength/weakness on the market to support the expected move.

But there's something that concerns me 8211; I've got an impression that somebody who presents the substance do not have a good expertise in scalping, perhaps he explains not his own system: trading using Keltner/envelope systems on M1 or on 10/35 tick chart requires ultra fast execution, sometimes action prior to the signal (yes, entry BEFORE the signal) but I learned calculation; #8220;you can grasp here 8 8211; 10 pips#8221; where taking into account waits, disperse and fast market change is an area in the best situation for 1-2 pips or break .

Generally speaking: excellent promotional material. Full of insights #8211 training but imho sometimes exaggerated. Examples of using Fibo levels insight into a market collective behaviour.

If you have any additional questions please ask.

Regarding Multimap and RS #8211; it needs further study #8211; to locate its best predictive appliion.

Your display with lines is better than MMap#8217;s as we could better view increase/decrease of power. I guess that sharp moves (angles over 45 degrees) may signify something interesting #8211; the supply/demand is rapidly changing and because of #8220;market inertia#8221; it will endure for a while.

So I'd focus on behaviour of pairs #8220;strongest mover #8221; and #8220;strongest runner-up #8221; in the moment. Here the #8220 power#8221; will probably be better.

Can it be possible to prepare a chart by way of example RS M15 during 4-5 days? It would help in analysis of pairs behaviour.

It will do to study 1 TF since the regularity on additional will be the same #8211;more TF#8217;s are aggregate reflection of smaller TF#8217;s.

EDIT:

Short summary of the first egy:
Choose a pair strongest-weakest in the moment (H1). Await retracement Enter when price touches Keltner station (adjust parameters to get a pair using previous days, TopGun has one for all strategy #8211; correcting is greater ). Exit Based on market situation: #8222;ten pips#8221;. Mid Keltner line or K#8217;s band. Last swing high/low, s/R nearby, places where prices stopped before and market briefly reversed. Fibo projections , 1,38 in the last movement.
That I will try to test this egy when I find time on Monday as I'm at home.

Circle under: Mmap minus 70 (probably as a result of news), we are waiting for upper Keltner. Point of entry (odds 95% according to TopGuns) - confluence: price touches upper Keltner and 38% retracement in the last movement. Initial Fibo goal (1.38) and probably stop searching (large traders target for stops accumulated beneath 95.00 level) preceding day low (behave as a resistance and a solid MMap #8211; second point of entry. Crossing preceding day low and preceding week low is considered as a strong bearish signal. Entrance #8211; price touches Keltner after minus 40 on MMap below. Divergence and a dual bottom #8211; extended with a chance for at last 10 pips. Confluence (circle) round number 95.00 along with a Fibo extension for an upward movement.
Combo beneath in the form of a histogram might be a sum of two strengths(with appropriate signs) separated by 2. It would be interesting to have such a tool.

They utilize combo (60) as a most important instrument for asessment of strength.
Combo (720) is a secondary instrument - strength inTF H12.

I really don't know why they utilize TF H1 and H12 as main resources for asessing strength.

Bare bones of the egy would be choosing a ideal pair (according to RS) and scalp along the Keltner channel in the direction of this trend (RS).

Pj9100, institute,
thanks for sharing your own insights.

pj9100,,
thanks for sharing your own insights.

Thank you for your kind and encouraging words

Now I tested RS.

1. I decided to enter the market at 9.35 local time (red vertical line). At this time weakest - NZD, strongest - USD. I looked at RS - M30 and TF H1.

Also great candidates: powerful (USD, JPY) and weak (NZD, AUD, GBP).

2. Look at picture - G/J Keltner with first TopGun parameters.

Although I didnt take every transaction ( I took 2 - one BE one 19 pips that's great ) this egy looks promising - to study it further.

Minus; NZD/USD is a wide-spread pair (6 pips) and this is a problem.

If when market goes against us TG employs averaging (scaling in) which means martingale - doubling position every 10-15 pips.

When we have broad spreads prices of scalping are enormous and egy becomes more risky.

AT least for today - this egy looks very great.

Now's motions G/J (on this pair this egy works best at the moment): 60, 15, 30, 30 pips. Not bad.

I studied TopGun software and their programs....

Thanks very much for all of this info. I haven't used TopGun, therefore that I can not comment on your findings. I did observe a few of their movies, but this was.

Is it feasible to prepare a chart as an example RS M15 through 4-5 days? It would assist in analysis of pairs behavior.

Yes, you could place the RS parameters as follows:
TimeFrames = M15;
NumPoints = 450;

This last scenario we can filter out from temporarily excluding the AUDJPY out of RS (I#8217;m not certain if I'm right).

In this scenario I wasn't singling out AUDJPY specifically, just using it for instance. What I was trying to say was that if the srength of currency XXX is climbing, and YYY is falling, both in the longer term timeframe, then a temporary fall in XXX often coincides with a rise in YYY; the general result is a pullback from the XXXYYY chart.

This frequently occurs across the board, e.g. if NZD and AUD are correlated, then their potency sometimes both rises and drops in unison. If USD and JPY are decreasing while NZD and AUD are climbing, then we could get a temporary pullback across the board, while USD and JPY increase, and AUD and NZD fall.

In case when market goes against us TG applies averaging (scaling in) meaning martingale - doubling place every 10-15 pips.

I would be very careful about scaling without some kind of limit. IMO trading involves placing quantities at risk across many distinct circumstances. Scaling in could finally entail placing a very large percent of someone's account on a single position, if price moves against the entry for long enough. It is the trading equivalent of risking the entire bankroll on a single roll of the dice. Increasing bet dimensions (e.g. Martingale) raises risk this risk further, exponentially.

Thank you for posting all of your research.

David

Im using MIG MT4 and that I can't actually get the indior to pop up on the, custom indior list. I believe I've done everything in order and I truly want to try out this indior, but I'm not that informed with this stuff. Any help would be appreciated, thx

I just created a demo account with IBFX - watch the result below.

Two potential causes:

1. Lack of data. Option: you need to go to each pair (then to each phase ), and then press the PageUp key a few occasions, to load data for every single pair/timeframe, from IBFX's host (s). The indior can simply plot whatever data is available. Incomplete or inaccurate data is reflected in the plots. I can't stress this highly enough. You can press F2 to load MT4's background centre, and assess what data is available for each pair/timeframe.

2. If you type one...

Hanover, I like the indior.

I discovered that someone mentioned about mini accounts . This seems to come up. I use the following code to get around the issue of broker logos. I place this in the function.

Inserted Code //------------------------------------------------------------ // Determine if emblem has a suffix and use it //------------------------------------------------------------ Suffix_Size = StringLen(Symbol()) - 6; Sym_Suffix = StringSubstr(Symbol(),6,Suffix_Size); //------------------------------------------------------------ Usage then would be like that in the indior.

Inserted Code MarketInfo(NZDUSD Sym_Suffix,MODE_BID); This way I do not need to prompt for suffix plus they do not need to be concerned about doing it. And if there's absolutely no suffix then it is just an empty string.



I'm interested in how you tell the indior to only take worth every XX minutes. I have values every tick.

Any suggestions would be appreciated.


EDIT: Can I use if(MathMod(TimeMinute(TimeCurrent()),5) == 0) before my for loop and this way the for loop is executed every 5 minutes???