FxTaTrader


Forex Technical Analysis based on experience and research.

Sunday, January 31, 2016

Forex Ranking and Rating for Wk5

In the coming period only the article "Ranking & Rating List" will be published. At the moment the process for generating the articles is being optimized and streamlined. The expectation is to publish all the articles again somewhere in February. Thanks for your understanding.

When looking at the Top 10 in the Weekly Ranking and Rating list we can see that for the coming week the following stronger currencies are well represented for going long: USD(4X) followed by the AUD(3X). The weaker currencies are the CHF(3X) with the GBP(3X).
A nice combination for coming week may be e.g:
  • GBP/USD with the AUD/CHF
  • GBP/AUD with the USD/CHF
These are just a few examples and many other combinations are possible. The mentioned pair combinations can be traded at the same time according to the rules of the FxTaTrader strategy because these are all different currencies. By not trading the same currency in the same direction more than once you may have better chances with lower risk.


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FxTaTrader Forex weekly ranking and rating list for Week 5 / 31-January-2016

Analysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every week the Forex ranking rating list will be prepared in the weekend. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.


______________________________________

The Forex ranking and rating list is meaningful data for my FxTaTrader strategy. Besides this list I also use the Currency Score which is also available once a week on my blog at FxTaTrader.com. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.


______________________________________

DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Sunday, January 24, 2016

Forex Ranking and Rating for Wk4

In the coming period only the article "Ranking & Rating List" will be published. At the moment the process for generating the articles is being optimized and streamlined. The expectation is to publish all the articles again somewhere in February. Thanks for your understanding.

When looking at the Top 10 in the Weekly Ranking and Rating list we can see that for the coming week the following stronger currencies are well represented for going long: USD(3X) followed by the JPY(2X). The weaker currencies are the GBP(5X) followed by the CHF(2X).
A nice combination for coming week may be e.g:
  • GBP/USD with the CHF/JPY
  • GBP/JPY with the USD/CHF
These are just a few examples and many other combinations are possible. The mentioned pair combinations can be traded at the same time according to the rules of the FxTaTrader strategy because these are all different currencies. By not trading the same currency in the same direction more than once you may have better chances with lower risk.

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FxTaTrader Forex weekly ranking and rating list for Week 4 / 24-January-2016

Analysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every week the Forex ranking rating list will be prepared in the weekend. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.



______________________________________

The Forex ranking and rating list is meaningful data for my FxTaTrader strategy. Besides this list I also use the Currency Score which is also available once a week on my blog at FxTaTrader.com. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.


______________________________________

DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Sunday, January 17, 2016

Forex Ranking and Rating for Wk3

In the coming period only the article "Ranking & Rating List" will be published. At the moment the process for generating the articles is being optimized and streamlined. The expectation is to publish all the articles again somewhere in February. Thanks for your understanding.

Besides the Ranking and Rating list provided here I will also prepare this weekend the Weekly Currency Score list which will support my analysis for trading in the coming week.

When looking at the Top 10 in the Weekly Ranking and Rating list we can see that for the coming week the following stronger currencies are well represented for going long: JPY(4X) followed by the USD(3X) with the EUR(3X). The weaker currencies are the AUD(3X) followed by the CAD(2X) with the GBP(2X).
A nice combination for coming week may be e.g:
  • AUD/JPY with the USD/CAD
  • CAD/JPY with the AUD/USD
  • GBP/JPY with the USD/CAD
These are just a few examples and many other combinations are possible. The mentioned pair combinations can be traded at the same time according to the rules of the FxTaTrader strategy because these are all different currencies. By not trading the same currency in the same direction more than once you may have better chances with lower risk.


______________________________________

FxTaTrader Forex weekly ranking and rating list for Week 3 / 17-January-2016

Analysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every week the Forex ranking rating list will be prepared in the weekend. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.


______________________________________

The Forex ranking and rating list is meaningful data for my FxTaTrader strategy. Besides this list I also use the Currency Score which is also available once a week on my blog at FxTaTrader.com. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.


______________________________________

DISCLAIMER:
The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Sunday, January 10, 2016

Forex Ranking and Rating for Wk2

In the coming period only the article "Ranking & Rating List" will be published. At the moment the process for generating the articles is being optimized and streamlined. The expectation is to publish all the articles again somewhere in February. Thanks for your understanding.

Besides the Ranking and Rating list provided here I will also prepare this weekend the Weekly Currency Score list which will support my analysis for trading in the coming week.

When looking at the Top 10 in the Weekly Ranking and Rating list we can see that for the coming week the following stronger currencies are well represented for going long: NZD(3X) with the CAD(3X) followed by the JPY(2X). The weaker currencies are the GBP(4X) followed by the AUD(3X) followed by the EUR(2X).
A nice combination for coming week may be e.g:
  • GBP/NZD with the AUD/JPY
  • EUR/NZD with the GBP/JPY
  • AUD/NZD with the GBP/JPY
These are just a few examples and many other combinations are possible. The mentioned pair combinations can be traded at the same time according to the rules of the FxTaTrader strategy because these are all different currencies. By not trading the same currency in the same direction more than once you may have better chances with lower risk.


______________________________________

FxTaTrader Forex weekly ranking and rating list for Week 2 / 10-January-2016

Analysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every week the Forex ranking rating list will be prepared in the weekend. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.


______________________________________

The Forex ranking and rating list is meaningful data for my FxTaTrader strategy. Besides this list I also use the Currency Score which is also available once a week on my blog at FxTaTrader.com. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.


______________________________________

DISCLAIMER:
The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Tuesday, January 5, 2016

Forex Currency Score Classification for January

This article provides the Currency Classification for the coming months based on my analysis for the 8 major currencies. This is based on the technical analysis charts using the MACD and Ichimoku indicator on 3 time frames: the monthly, weekly and daily. The result of the technical analysis are the Currency Classifications charts in this article.


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Last 12 months currency classification / Updated 3-January-2016

The last 12 months currency classification from a longer term perspective are provided here with the new charts:
  • Strong: CHF / GBP / USD. The preferred range is from 6 to 8.
  • Average: NZD, JPY. The preferred range is from 4 to 5.
  • Weak: EUR, CAD, AUD. The preferred range is from 1 to 3.
The NZD has become an average currency and switched places with the EUR which is now a weak currency.
For now the strong and weak classification categories contain 3 currencies while the average classification has only 2 currencies.


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Here below are the charts providing the Currency classifications. There are three charts showing resp. the strong, average and weak currencies.












______________________________________

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. When trading according to the FxTaTrader Strategy some rules are in place. For more information see the page on my blog FxTaTrader Strategy. Depending on the opportunities that may come up the decision to trade a currency may become more obvious at that moment. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.



______________________________________ 

DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Forex Currency Score Difference for January

The Currency Score Difference analysis is the more extensive explanation on the Currency score analysis which was also published this week. Besides these analyses and the corresponding charts I also provide the Forex ranking and rating list.

This article will provide my analysis on the 8 major currencies based on the technical analysis charts using the MACD and Ichimoku indicator on 3 time frames: the monthly, weekly and daily. The result of the technical analysis is the 2 screenshots in this article showing the Currency Score Difference and the Top Forex pairs table.

In the previous article the analysis was made for the Currency Score and a summary of the results are here below:

  • The NZD and the JPY have a score at the moment of a strong currency and it seems best for trading going long against the weak currencies.
  • There is a pullback for the AUD which is getting stronger.
  • There is a pullback for the CHF and the GBP which are getting weaker.
  • The other currencies, the USD, EUR and the CAD are within their range.
  • All the interesting pairs from the "Ranking and Rating list" do also look interesting according to the "Currency Score" analysis from the previous article.

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Currency Score difference for January / Updated 3-January-2016

According to the Ranking and Rating list already published during this week the following pair combinations look interesting:
  • EUR/NZD (A/W) with the USD/CAD (S/W)
  • NZD/CAD (A/W) with the EUR/USD (S/W)
When looking at the Currency Score Table here below for this week we can see the currency score differences. The interesting pairs should have by preference a score difference of 4 or higher when they are similarly classified. Or the better classified pair should have a higher score than the counterpart. All the pairs mentioned above comply for trading in the coming week. The Currencies are colored Green, Orange and Red resp. by the classification they have. This way it is easier to see what currencies should have a certain score difference.




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The technical analysis is the most important issue to consider before taking positions, the Monthly Chart is analyzed. I prefer the Bollinger Band for defining where a pair is in the chart. Once a pair is outside a Bollinger Band it is in a strong trend which can cause a strong pullback. Although this may be a good opportunity I avoid taking positions because of the possible unexpected strong pullback. Positions are only opened inside the Bollinger Band and this may be at the start of a possible trend or on a good pullback in an existing trend.

The following table shows the location related to the Bollinger Bands of each interesting pair analyzed and approved in all the previous analyses.

  • The pairs located within the Bollinger Bands and at the Bollinger Bands have the best opportunities because the chance of a pullback is the lowest.
  • Any pair slightly above or below the Bollinger Bands may be inside when trading starts again. These pairs have to be checked on opening of the market.
  • Also, any pair outside the Bollinger Bands may be interesting when trading starts because of a pullback in the pair.




______________________________________

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. When trading according to the FxTaTrader Strategy some rules are in place. For more information see the page on my blog FxTaTrader Strategy. Depending on the opportunities that may come up the decision to trade a currency may become more obvious at that moment. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.


______________________________________ 

DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Forex Currency Score for January

The Currency Score analysis is one of the parameters used for the Ranking and Rating list which was also published this week. Besides this analysis and the corresponding chart I also provide the Forex ranking and rating list.
This article will provide my analysis on the 8 major currencies based on the technical analysis charts using the MACD and Ichimoku indicator on 3 time frames: the monthly, weekly and daily. The result of the technical analysis is the 2 screenshots in this article showing the Currency Score and the Currency deviation table.

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Currency Score for January 2016 / Updated 3-January-2016

For analyzing the best pairs to trade the last 12 months currency classification is the first issue. When looking at the most recent score that is used for the coming period we can see in the screenshot below the deviations and we can draw the first set of conclusions. These are given below the screenshot.





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12 Months Currency Score Data

The 12 month currency score data and the 12 month average is provided here below. This data and the "12 month currency classification" are considered for choosing the preferred range.
  • At the moment we can see that the EUR has the second lowest value in the 12 months average after the AUD. It has been lower than the AUD for 7 out of the last 12 months. For that reason the EUR now is a weak currency and the NZD an average currency.
Because it is not ideal nor desired to change the range for a currency every single month, we can make several checks to avoid this. First of all the 12 months average and the scores over a period of 12 months. Both, the average and the scores can be seen in the table below. Besides this the "12 months currency classification" chart of each currency is also consulted. These have been updated and can be found in the following article: Forex Currency Score Classification for January





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Last 12 months currency classification

  The last 12 months currency classifications from a longer term perspective are provided for reference purposes. The currencies are classified for the coming months as follows:









The pair combinations mentioned seem to be the best pairs according to the Currency Score. However, there are some currencies outside their default range. For that reason these currencies are analyzed in more detail in this article.

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For choosing the best pairs by simply using the Currency Score it boils down in essence to the 3 following lines of text:

  1. A strong currency can be traded long against all the other currencies except on a pullback(deviation) then it seems best to trade it only against a weak currency.
  2. A weak currency can be traded short against all the other currencies except on a pullback(deviation) then it seems best to trade it only against a strong currency.
  3. When an average currency is outside the range(deviation) it is best not to trade it against similar currencies in the average range and the currencies in the range it is at.
Because the text above is quite abstract you can read below a more detailed description. At the same time we will look into the interesting pairs mentioned in the Ranking and Rating list already published this week, the group pair combination is added behind the pair:
  • EUR/NZD (A/W) with the USD/CAD (S/W)
  • NZD/CAD (A/W) with the EUR/USD (S/W)

The Forex Currency deviation table shows the deviations and the ranges where the deviating currencies should be in. Any strong or weak currency outside the range are most probably in a pullback and loosing momentum.
  • These currencies can best be traded according to the combinations in the group "S/W" in the Forex Group pair combinations table.
  • All the other strong currencies can be traded according to the combinations in the group "S/A" and "S/W" in the Forex Group pair combinations table.
  • All the other weak currencies can be traded according to the combinations in the group "A/W" and "S/W" in the Forex Group pair combinations table.

Any average currency outside the range are getting stronger if they are in the "Strong" range or weaker if they are in the "Weak" range. These currencies can best be traded with the opposite range.
  • An average currency in the "Strong" range can best be traded against a weak currency, see the the combinations in the group "A/W".
  • An average currency in the "Weak" range can best be traded against a strong currency, see the the combinations in the group "S/A".
  • All the other average currencies can be traded according to the combinations in the group "S/A" and "A/W" in the Forex Group pair combinations table.
 .

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A good foundation is provided for looking at the Monthly and Weekly Technical analysis chart of a specific pair by using the (1)"Ranking and Rating list", published earlier this week, with the above (2)"Monthly Currency Score" analysis and together with the (3)"Currency score difference" table with the (4)"Top Forex pairs table" where the Bollinger Bands analyses are made on the interesting pairs.
  • The analyses are complementary where:
    • the "Ranking and Rating list" takes strength, direction and volatility into account.
    • the "Currency score" looks for the strong trends and pullbacks with a possible disadvantage of being overbought/oversold.
    • the "Currency score difference" adds granularity to the "Currency score" by using the score difference for determining potential trends.
    • the "Bollinger Band" confirms that a potential trend found is not being overbought/oversold. 
    • With the "Currency score difference" and the "Bollinger Band" the disadvantage mentioned for the Currency score will be avoided.
______________________________________

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. When trading according to the FxTaTrader Strategy some rules are in place. For more information see the page on my blog FxTaTrader Strategy. Depending on the opportunities that may come up the decision to trade a currency may become more obvious at that moment. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming month.


______________________________________ 


DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Forex Ranking and Rating for January

Besides the Ranking and Rating list provided here I will also prepare this week the Monthly Currency Score list which will support my analysis for trading in the coming month.

When looking at the Top 10 in the Monthly Ranking and Rating list we can see that for the coming month the following stronger currencies are well represented for going long: NZD(4X) followed by the USD(3X). The weaker currencies are the CAD(4X) followed by the GBP(3X) and the EUR(2X).

A nice combination for coming week may be e.g:
  • EUR/NZD with the USD/CAD
  • NZD/CAD with the EUR/USD
These are just a few examples and many other combinations are possible. The mentioned pair combinations can be traded at the same time according to the rules of the FxTaTrader strategy because these are all different currencies. By not trading the same currency in the same direction more than once you may have better chances with lower risk.


______________________________________

FxTaTrader Forex monthly ranking and rating list for January / Updated 3-January-2016

Analysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every month the Forex ranking rating list will be prepared at the month change. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.


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The monthly articles will be published during weekdays only. When the 1st of the month is on Monday, Tuseday or Wednesday the weekend before will be used for creating the models. Otherwise the weekend after will be used. Reason for creating the information in the weekend is because the Weekly close is more important than the daily close.

The Forex monthly ranking and rating list is meaningful data for my FxTaTrader strategy. Besides this list I also use the Monthly Currency Score which is also available once a month on my blog at FxTaTrader.com. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming month.


______________________________________

DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Sunday, January 3, 2016

Forex Currency Score Classification for Wk1

This article provides Currency Classification for the coming weeks. It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. This article will provide my analysis on the 8 major currencies based on the technical analysis charts using the MACD and Ichimoku indicator on 4 time frames: the monthly, weekly, daily and 4 hours. The result of the technical analysis is the 2 screenshots in this article showing the Currency Score and the Currency Score Difference.


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 Last 3 months currency classification

The last 3 months currency classification from a longer term perspective are provided here with the new charts:
  • Strong: USD / NZD. The preferred range is from 7 to 8.
  • Average: JPY, GBP, AUD. The preferred range is from 4 to 6.
  • Weak: EUR, CHF, CAD. The preferred range is from 1 to 3.
The NZD has become a strong currency and switched places with the GBP which is now an average currency.
The CAD has become a weak currency and switched places with the AUD which is now an average currency.
For now the average and weak classification categories contain 3 currencies while the strong classification has only 2 currencies.


______________________________________

Here below are the charts providing the Currency classifications. There are three charts showing resp. the strong, average and weak currencies.











______________________________________

When trading according to the FxTaTrader Strategy some rules are in place. For more information see the page on my blog FxTaTrader Strategy. Depending on the opportunities that may come up the decision to trade a currency may become more obvious at that moment. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.



______________________________________ 

DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Forex Currency Score Difference for Wk1

The Currency Score Difference analysis is the more extensive explanation on the Currency score analysis which was published earlier this weekend. Besides these analyses and the corresponding charts I also provide the Forex ranking and rating list.

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. This article will provide my analysis on the 8 major currencies based on the technical analysis charts using the MACD and Ichimoku indicator on 4 time frames: the monthly, weekly, daily and 4 hours. The result of the technical analysis is the 2 screenshots in this article showing the Currency Score Difference and the Top Forex pairs table.

In the previous article the analysis was made for the Currency Score and a summary of the results are here below:
  • The JPY has a score at the moment of a strong currency and it seems best for trading going long against the weak currencies.
  • The GBP has a score at the moment of a weak currency and it seems best for trading going short against the strong currencies.
  • There is a pullback for the USD and the CHF.
  • The other currencies, the NZD, AUD, EUR and the CAD are within their range.
  • All the interesting pairs from the "Ranking and Rating list" do also look interesting according to the "Currency Score" analysis from the previous article.

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Currency Score difference

According to the Ranking and Rating list already published this weekend the following pair combinations look interesting:
  • GBP/NZD with the EUR/JPY
  • CAD/JPY with the EUR/NZD
  • NZD/CAD with the EUR/JPY
When looking at the Currency Score Table here below for this week we can see the currency score differences. The interesting pairs should have by preference a score difference of 4 or higher when they are similarly classified. Or the better classified pair should have a higher score than the counterpart. All the pairs mentioned above comply for trading in the coming week. The Currencies are colored Green, Orange and Red resp. by the classification they have. This way it is easier to see what currencies should have a certain score difference.






______________________________________

The technical analysis is the most important issue to consider before taking positions, the Weekly Chart is analyzed. I prefer the Bollinger Band for defining where a pair is in the chart. Once a pair is outside a Bollinger Band it is in a strong trend which can cause a strong pullback. Although this may be a good opportunity I avoid taking positions because of the possible unexpected strong pullback. Positions are only opened inside the Bollinger Band and this may be at the start of a possible trend or on a good pullback in an existing trend.

The following table shows the location related to the Bollinger Bands of each interesting pair analyzed and approved in all the previous analyses.
  • The pairs located within the Bollinger Bands and at the Bollinger Bands have the best opportunities because the chance of a pullback is the lowest.
  • Any pair slightly above or below the Bollinger Bands may be inside when trading starts again. These pairs have to be checked on opening of the market.
  • Also, any pair outside the Bollinger Bands may be interesting when trading starts because of a pullback in the pair.


______________________________________

When trading according to the FxTaTrader Strategy some rules are in place. For more information see the page on my blog FxTaTrader Strategy. Depending on the opportunities that may come up the decision to trade a currency may become more obvious at that moment. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.


______________________________________ 

DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Forex Currency Score for Wk1

The Currency Score analysis is one of the parameters used for the Ranking and Rating list which was published earlier this weekend. Besides this analysis and the corresponding chart I also provide the Forex ranking and rating list.

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. This article will provide my analysis on the 8 major currencies based on the technical analysis charts using the MACD and Ichimoku indicator on 4 time frames: the monthly, weekly, daily and 4 hours. The result of the technical analysis is the 3 screenshots in this article showing the  13 Weeks Currency Score Data, Currency Score and the Currency deviation table.

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Currency Score

For analyzing the best pairs to trade the last 3 months currency classification is the first issue. When looking at the most recent score that is used for the coming period we can see in the screenshot below the deviations and we can draw the first set of conclusions. These are given below the screenshot.






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13 Weeks Currency Score Data

The 13 weeks currency score data and the 13 weeks average is provided here below. This data and the "3 months currency classification" are considered for choosing the preferred range.
  • At the moment we can see that the CAD has the second lowest value in the 13 weeks average after the EUR. It has been lower than the AUD for 10 out of the last 13 weeks. For that reason the CAD now is a weak currency and the AUD an average currency.
  • Same situation applies to the GBP compared to the NZD. In this case the GBP has been lower than the NZD for 9 out of the last 13 weeks. For that reason the GBP now is an average currency and the NZD a strong currency.
Because it is not ideal nor desired to change the range for a currency every single week, we can make several checks to avoid this. First of all the 13 weeks average and the scores over a period of 13 weeks. Both, the average and the scores can be seen in the table below. Besides this the "3 months currency classification" chart of each currency is also consulted. These have been updated and can be found in the following article: Forex Currency Score Classification for Wk1




______________________________________

Last 3 months currency classification

The last 3 months currency classifications from a longer term perspective are provided for reference purposes. The currencies are classified for the coming weeks as follows:

The pair combinations mentioned seem to be the best pairs according to the Currency Score. However, there are some currencies outside their default range. For that reason these currencies are analyzed in more detail in this article.


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For choosing the best pairs by simply using the Currency Score it boils down in essence to the 3 following lines of text:

  1. A strong currency can be traded long against all the other currencies except on a pullback(deviation) then it seems best to trade it only against a weak currency.
  2. A weak currency can be traded short against all the other currencies except on a pullback(deviation) then it seems best to trade it only against a strong currency.
  3. When an average currency is outside the range(deviation) it is best not to trade it against similar currencies in the average range and the currencies in the range it is at.
Because the text above is quite abstract you can read below a more detailed description. At the same time we will look into the interesting pairs mentioned in the Ranking and Rating list already published this weekend, the group pair combination is added behind the pair:
  • GBP/NZD (S/W) with the EUR/JPY (A/W)
  • CAD/JPY (A/W) with the EUR/NZD (S/W)
  • NZD/CAD (S/W) with the EUR/JPY (A/W)

The Forex Currency deviation table shows the deviations and the ranges where the deviating currencies should be in. Any strong or weak currency outside the range are most probably in a pullback and loosing momentum.
  • These currencies can best be traded according to the combinations in the group "S/W" in the Forex Group pair combinations table.
  • All the other strong currencies can be traded according to the combinations in the group "S/A" and "S/W" in the Forex Group pair combinations table.
  • All the other weak currencies can be traded according to the combinations in the group "A/W" and "S/W" in the Forex Group pair combinations table.


Any average currency outside the range are getting stronger if they are in the "Strong" range or weaker if they are in the "Weak" range. These currencies can best be traded with the opposite range.
  • An average currency in the "Strong" range can best be traded against a weak currency, see the the combinations in the group "A/W".
  • An average currency in the "Weak" range can best be traded against a strong currency, see the the combinations in the group "S/A".
  • All the other average currencies can be traded according to the combinations in the group "S/A" and "A/W" in the Forex Group pair combinations table.

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A good foundation is provided for looking at the Weekly and Daily Technical analysis chart of a specific pair by using the (1)"Ranking and Rating list", published earlier this weekend, with the above (2)"Weekly Currency Score" analysis and together with the (3)"Currency score difference" table with the (4)"Top Forex pairs table" where the Bollinger Bands analyses are made on the interesting pairs.
  • The analyses are complementary where:
    • the "Ranking and Rating list" takes strength, direction and volatility into account.
    • the "Currency score" looks for the strong trends and pullbacks with a possible disadvantage of being overbought/oversold.
    • the "Currency score difference" adds granularity to the "Currency score" by using the score difference for determining potential trends.
    • the "Bollinger Band" confirms that a potential trend found is not being overbought/oversold. 
    • With the "Currency score difference" and the "Bollinger Band" the disadvantage mentioned for the Currency score will be avoided.
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When trading according to the FxTaTrader Strategy some rules are in place. For more information see the page on my blog FxTaTrader Strategy. Depending on the opportunities that may come up the decision to trade a currency may become more obvious at that moment. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.


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DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Forex Ranking and Rating for Wk1

Besides the Ranking and Rating list provided here I will also prepare this weekend the Weekly Currency Score list which will support my analysis for trading in the coming week.

When looking at the Top 10 in the Weekly Ranking and Rating list we can see that for the coming week the following stronger currencies are well represented for going long: JPY(4X) followed by the NZD(3X). The weaker currencies are the GBP(4X) followed by the CAD(3X) and the EUR(2X).
A nice combination for coming week may be e.g:
  • GBP/NZD with the EUR/JPY
  • CAD/JPY with the EUR/NZD
  • NZD/CAD with the EUR/JPY
These are just a few examples and many other combinations are possible. The mentioned pair combinations can be traded at the same time according to the rules of the FxTaTrader strategy because these are all different currencies. By not trading the same currency in the same direction more than once you may have better chances with lower risk.


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FxTaTrader Forex weekly ranking and rating list for Week 1 / 3-January-2016

Analysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every week the Forex ranking rating list will be prepared in the weekend. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.


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The Forex ranking and rating list is meaningful data for my FxTaTrader strategy. Besides this list I also use the Currency Score which is also available once a week on my blog at FxTaTrader.com. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week.


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DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.