FxTaTrader


Forex Technical Analysis based on experience and research.

Sunday, April 24, 2016

Forex Currency Score Classification for Wk17

This article provides the Currency Classification for the coming weeks based on my analysis for the 8 major currencies. This is 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 are the Currency Classifications charts in this article.


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Last 3 months currency classification updated on Week 17, 24 April 2016

The last 3 months currency classification from a longer term perspective are provided here with the new charts:
  • Strong: JPY / AUD / CHF. The preferred range is from 6 to 8.
  • Average: USD / CAD / NZD. The preferred range is from 3 to 5.
  • Weak: EUR / GBP. The preferred range is from 1 to 2.
The AUD and the CAD gained a lot of strength lately while the USD and the EUR lost strength.
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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.










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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. 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 Strength and Comparison WK17

Welcome to my "Strength and Comparison" article for the coming week, the article "Ranking, Rating and Score" has also been published.
For analyzing the best pairs to trade looking from a longer term perspective the last 3 months Currency Classification can be used in support.
This was updated today, 24 April 2016, and is provided here for reference purposes:
Strong: JPY, AUD, CHF. The preferred range is from 6 to 8.
Average: USD, CAD, NZD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.
The charts were provided in the article:  "Forex Currency Score Classification for Wk17".




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13 Weeks Currency Score Strength for Week 17 / 24 April 2016

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the "3 months currency classification" are considered for deciding on the preferred range. Because it is not ideal nor desired to change the range for a currency every single week, we perform several checks to avoid this.
  1. First of all the strength over a period of 13 weeks. See each row for more information.
  2. Then the 13 weeks average over a period of 13 weeks. See the last row called "Avg. 13 wks."
  3. The amount of weeks that a currency is stronger than another currency can also be evaluated.
  4. The TA Charts for each Time Frame can also be consulted.
  5. Besides these the "13 weeks Currency Classification" chart of each currency is also consulted and compared. These have been updated and can be found in the article: "Forex Currency Score Classification for Wk17".


Last week we looked into the USD and the AUD and they switched places today in the Classification. Another switch took place also and that is between the EUR and the CAD. The latter one has a higher "Avg. 13 wks." score compared to the EUR.
  • The CAD had also 8 times a higher score in the last 13 weeks.
  • When looking at the Classification chart itself it is clear to see that the CAD is stronger lately.
  • When looking at the Weekly and Daily charts of this specific pair they are als showing weakness for the EUR. The pair is in both charts below the Ichimoku Cloud and having a MACD in negative area.

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Currency Score Comparison for Week 17 / 24 April 2016

"Comparison table" and the "Ranking and Rating list"
The Forex Currency Comparison Table compares each currency with its counterpart based on the Currency Score. For more information about the currency Score of this week you can read the article "Forex Ranking, Rating and Score" which is published every week together with this article.
By using the comparison table here below you get a view without the volatility and statistics as opposed to the "Ranking and Rating list". Only the strength of each currency against the counterparts is analyzed by using the Technical analysis charts of the 4 Time Frames that are also used for the "Ranking and Rating List".
The information from the Comparison Table is the source for calculating the "Ranking and Rating List" where this list uses additionally the volatility and statistics for creating the best and worst performer in the list from number 1 to 28.




"Comparison table" and the "Currency Score Chart"
The additional analysis of this table compared to the Currency Score table is that the Comparison Table compares the strength between the currencies of each pair. By subtracting the strength of the weaker currency from the stronger currency we have a way to compare each pair combination.
The comparison table provides a way to compare currencies from a longer term perspective of 13 weeks and also simultaneously taking the current trend into account. By coloring the currencies in the X and Y axis according to their Classification, see "Forex Currency Score Classification for Wk17", we can show what the best combinations are. In doing this we apply 2 rules to make it clear.
  1. First of all only better classified currencies in combination with weaker classified currencies are "Approved".
  2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
    • It means that each currency should be as far apart from each other as possible in the range from 1 to 8. This means that the classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact the half of the range it seems a safe approach for trading 2 currencies similarly classified.
    • Since each classification covers only 2 or 3 scores at the most it means that the currencies should be at least one classification apart from each other in the current week.
    • Even though they are in the same classification when looking at the 13 weeks average a currency may be in a weaker/stronger period and may even change its classification in the future. See the current classification for the coming period at the top of this article.



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Putting the pieces together

Based on the last "3 months currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the CAD, AUD and USD. These are strong or average currencies from a longer term perspective when looking at the last "3 months currency classification". For going short the same analysis can be done and the EUR and the GBP seem to fit best. These are weak or average currencies from a longer term perspective.

Some of these pairs comply for a longer term trade based on the Daily and Weekly chart. We will look at these ones here in a bit more detail. The ones that do not comply may be more interesting for the short term. See the article "Ranking, Rating and Score" for more details.
  • When analyzing the Weekly and Daily charts the best pairs for the coming week seem to be the GBP/CAD, EUR/CAD, AUD/CHF, EUR/AUD, AUD/NZD, GBP/NZD, GBP/AUD, CHF/JPY
  • A crossed join between the Top 10 pairs in the "Ranking and Rating List", the "Currency Comparison Table" and the pairs with the best charts mentioned here above shows the following interesting pairs: GBP/CAD, EUR/CAD, AUD/CHF, EUR/AUD.
    • The following pair is not mentioned as "Approved" pairs in the "Currency Comparison Table": CHF/JPY
    • The following pairs are not mentioned in the Top 10 of the Ranking and Rating list: AUD/NZD, GBP/NZD, GBP/AUD and CHF/JPY
The article "Ranking, Rating and Score" published this weekend contains the following interesting pairs:
  • EUR/CAD with the AUD/JPY
  • AUD/CHF with the EUR/USD
  • EUR/AUD with the CAD/CHF
From these pairs the AUD/JPY, EUR/USD and the CAD/CHF does not seem to be interesting according to the mentioned crossed join here above. The TA Charts are not interesting enough and only the EUR/USD is mentioned in the "Currency Comparison Table".



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The Forex "13 Weeks Currency Strength" and the "Comparison Table" provide meaningful data for my FxTaTrader strategy. Besides this I also use the "Forex Ranking, Rating and 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.

Forex Ranking, Rating and Score WK17

Welcome to my "Ranking, Rating and Score" article for the coming week, the article "Strength and Comparison" has also been published.
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: CAD(5X) followed by the AUD(3X) followed by the CAD(2X) with the USD(2X). The weaker currencies are the EUR(3X) with the CHF(3X) followed by the JPY(2X).
A nice combination for coming week may be e.g:
  • EUR/CAD with the AUD/JPY
  • AUD/CHF with the EUR/USD
  • EUR/AUD with the CAD/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 in the same Time Frame you may have better chances with lower risk.



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Ranking and Rating list for Week 17 / 24 April 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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For analyzing the best pairs to trade looking from a longer term perspective the last 3 months Currency Classification can be used in support.
This was updated today, 24 April 2016, and is provided here for reference purposes:
Strong: JPY, AUD, CHF. The preferred range is from 6 to 8.
Average: USD, CAD, NZD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.
The charts were provided in the article:  "Forex Currency Score Classification for Wk17".

When comparing the 3 months Currency Classification with the pairs mentioned in the Ranking List above some would then become less interesting. On the other hand these pairs are at the top of the list partly also because of their volatility. It seems best to take postitions for a short term then and take advantage of the high price movements.
With the FxTaTrader Strategy these pairs are not traded because these would be trades in the 4 Hour chart or in a lower Time Frame. Nevertheless they may offer good chances for the short term trader.




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Currency Score for Week 17 / 24 April 2016

The Currency Score analysis is one of the parameters used for the Ranking and Rating list which is published also in this article. The Currency Score is 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 screenshot here below.



When comparing the 3 months Currency Classification with the recent Currency Score, as provided in the image above, we can determine the deviations. In the article "Forex Strength and Comparison" this is analyzed in more detail. Currencies with a high deviation seem less interesting to trade because they are less predictable. These currencies are at the moment e.g. the USD, CHF, EUR and the CAD. Unless these currencies offer a clear opportunity based on the longer term they are avoided.
In the article "Forex Strength and Comparison" we will look in more detail at the interesting pairs from a longer term perspective for trading in the Daily and Weekly chart. We will use the information from this article and analyze it further in more detail.



______________________________________

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. The Forex "Ranking and Rating list" and the "Score Chart" provide meaningful data for my FxTaTrader strategy. Besides this I also use the Forex "Strength and Comparison" 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, April 17, 2016

Forex Strength and Comparison WK16

Welcome to my "Strength and Comparison" article for the coming week, the article "Ranking, Rating and Score" has also been published.
For analyzing the best pairs to trade looking from a longer term perspective the last 3 months Currency Classification can be used in support.
This was updated on 27 March 2016 and is provided here for reference purposes:
Strong: USD / JPY / CHF. The preferred range is from 6 to 8.
Average: EUR, AUD, NZD. The preferred range is from 3 to 5.
Weak: GBP, CAD. The preferred range is from 1 to 2.
The charts were provided in the article:  "Forex Currency Score Classification for Wk13".



______________________________________

13 Weeks Currency Score Strength for Week 16 / 17 April 2016

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the "3 months currency classification" are considered for deciding on the preferred range. Because it is not ideal nor desired to change the range for a currency every single week, we perform several checks to avoid this.
  1. First of all the strength over a period of 13 weeks. See each row for more information.
  2. Then the 13 weeks average over a period of 13 weeks. See the row last row called "Avg. 13 wks."
  3. The amount of weeks that a currency is stronger than another currency can also be evaluated.
  4. The TA Charts for each Time Frame can also be consulted.
  5. Besides these the "13 weeks Currency Classification" chart of each currency is also consulted and compared. These have been updated and can be found in the article: "Forex Currency Score Classification for Wk13".


 At the moment we can see that the AUD has a higher "Avg. 13 wks." score compared to the USD. The AUD has the same score as the CHF.
The USD and the CHF are both strong currencies in the "13 weeks Currency Classification". The AUD and the USD are pairs that could well change in the "13 weeks Currency Classification".
  • At the moment it is too soon to make this change based on only the higher "Avg. 13 wks."
  • The AUD had also 8 times a higher score in the last 13 weeks so it is possible that the pairs will change classifications soon.
  • When looking at the Classification chart itself it is clear to see that the AUD is stronger lately.
  • However, the Monthly and Weekly charts of this specific pair are showing a strong pullback but not yet a clear trend change. It is now at a resistance level which was a support in the period Q2, 2015.


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Currency Score Comparison for Week 16 / 17 April 2016

"Comparison table" and the "Ranking and Rating list"
The Forex Currency Comparison Table compares each currency with its counterpart based on the Currency Score. For more information about the currency Score of this week you can read the article "Forex Ranking, Rating and Score" which is published every week together with this article.
By using the comparison table here below you get a view without the volatility and statistics as opposed to the "Ranking and Rating list". Only the strength of each currency against the counterparts is analyzed by using the Technical analysis charts of the 4 Time Frames that are also used for the "Ranking and Rating List".
The information from the Comparison Table is the source for calculating the "Ranking and Rating List" where this list uses additionally the volatility and statistics for creating the best and worst performer in the list from number 1 to 28.




"Comparison table" and the "Currency Score Chart"
The additional analysis of this table compared to the Currency Score table is that the Comparison Table compares the strength between the currencies of each pair. By subtracting the strength of the weaker currency from the stronger currency we have a way to compare each pair combination.
The comparison table provides a way to compare currencies from a longer term perspective of 13 weeks and also simultaneously taking the current trend into account. By coloring the currencies in the X and Y axis according to their Classification, see "Forex Currency Score Classification for Wk13", we can show what the best combinations are. In doing this we apply 2 rules to make it clear.
  1. First of all only better classified currencies in combination with weaker classified currencies are "Approved".
  2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
    • It means that each currency should be as far apart from each other as possible in the range from 1 to 8. This means that the classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact the half of the range it seems a safe approach for trading 2 currencies similarly classified.
    • Since each classification covers only 2 or 3 scores at the most it means that the currencies should be at least one classification apart from each other in the current week.
    • Even though they are in the same classification when looking at the 13 weeks average a currency may be in a weaker/stronger period and may even change its classification in the future. See the current classification for the coming period at the top of this article.


______________________________________

Putting the pieces together

Based on the last "3 months currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the JAUD and JPY. These are strong or average currencies from a longer term perspective when looking at the last "3 months currency classification". For going short the same analysis can be done and the EUR and the GBP seem to fit best. These are weak or average currencies from a longer term perspective.

Some of these pairs comply for a longer term trade based on the Daily and Weekly chart. We will look at these ones here in a bit more detail. The ones that do not comply may be more interesting for the short term. See the article "Ranking, Rating and Score" for more details.
  • When analyzing the Weekly and Daily charts the best pairs for the coming week seem to be the AUD/CAD, AUD/NZD, CHF/JPY, EUR/AUD, EUR/GBP, EUR/JPY, GBP/AUD, GBP/CAD, GBP/CHF, GBP/JPY, GBP/NZD, GBP/USD, USD/JPY.
  • A crossed join between the Top 10 pairs in the "Ranking and Rating List", the "Currency Comparison Table" and the pairs with the best charts mentioned here above shows the following interesting pairs: AUD/CAD, CHF/JPY, EUR/AUD, EUR/GBP, EUR/JPY, GBP/AUD, GBP/CAD, GBP/JPY, GBP/NZD, GBP/USD.
    • The AUD/NZD and the USD/JPY are not mentioned as "Approved" pairs in the "Currency Comparison Table".
    • The USD/JPY and the GBP/CHF. These are not mentioned in the Top 10 of the Ranking and Rating list.
The article "Ranking, Rating and Score" published this weekend contains the following interesting pairs:
  • GBP/AUD with the EUR/CAD
  • GBP/JPY with the EUR/AUD
  • GBP/CAD with the EUR/JPY
From these pairs only the EUR/CAD does not seem to be interesting according to the mentioned crossed join here above.


______________________________________

The Forex "13 Weeks Currency Strength" and the "Comparison Table" provide meaningful data for my FxTaTrader strategy. Besides this I also use the "Forex Ranking, Rating and 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.

Forex Ranking, Rating and Score WK16

Welcome to my "Ranking, Rating and Score" article for the coming week, the article "Strength and Comparison" has also been published.
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: AUD(3X) with the JPY(3X) followed by the CAD(2X). The weaker currencies are the GBP(5X) followed by the EUR(3X).
A nice combination for coming week may be e.g:
  • GBP/AUD with the EUR/CAD
  • GBP/JPY with the EUR/AUD
  • GBP/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 in the same Time Frame you may have better chances with lower risk.


______________________________________

Ranking and Rating list for Week 16 / 17 April 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.






______________________________________

For analyzing the best pairs to trade looking from a longer term perspective the last 3 months currency classification can be used in support.
This was updated on 27 March 2016 and is provided here for reference purposes:
Strong: USD / JPY / CHF. The preferred range is from 6 to 8.
Average: EUR, AUD, NZD. The preferred range is from 3 to 5.
Weak: GBP, CAD. The preferred range is from 1 to 2.
The charts are provided in the following article: "Forex Currency Score Classification for Wk13".

When comparing the 3 months Currency Classification with the pairs mentioned in the Ranking List above some would then become less interesting. On the other hand these pairs are at the top of the list partly also because of their volatility. It seems best to take postitions for a short term then and take advantage of the high price movements.
With the FxTaTrader Strategy these pairs are not traded because these would be trades in the 4 Hour chart or in a lower Time Frame. Nevertheless they may offer good chances for the short term trader.


______________________________________

Currency Score for Week 16 / 17 April 2016

The Currency Score analysis is one of the parameters used for the Ranking and Rating list which is published also in this article. The Currency Score is 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 screenshot here below.



When comparing the 3 months Currency Classification with the recent Currency Score, as provided in the image above, we can determine the deviations. In the article "Forex Strength and Comparison" this is analyzed in more detail. Currencies with a high deviation seem less interesting to trade because they are less predictable. These currencies are at the moment e.g. the USD, CHF, EUR and the CAD. Unless these currencies offer a clear opportunity based on the longer term they are avoided.
In the article "Forex Strength and Comparison" we will look in more detail at the interesting pairs from a longer term perspective for trading in the Daily and Weekly chart. We will use the information from this article and analyze it further in more detail.


______________________________________

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. The Forex "Ranking and Rating list" and the "Score Chart" provide meaningful data for my FxTaTrader strategy. Besides this I also use the Forex "Strength and Comparison" 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, April 10, 2016

Forex Strength and Comparison WK15

Welcome to my "Strength and Comparison" article for the coming week, the article "Ranking, Rating and Score" has also been published.
For analyzing the best pairs to trade looking from a longer term perspective the last 3 months Currency Classification can be used in support.
This was updated on 27 March 2016 and is provided here for reference purposes:
Strong: USD / JPY / CHF. The preferred range is from 6 to 8.
Average: EUR, AUD, NZD. The preferred range is from 3 to 5.
Weak: GBP, CAD. The preferred range is from 1 to 2.
The charts were provided in the article:  "Forex Currency Score Classification for Wk13".




______________________________________

13 Weeks Currency Score Strength for Week 15 / 10 April 2016

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the "3 months currency classification" are considered for deciding on the preferred range. Because it is not ideal nor desired to change the range for a currency every single week, we perform several checks to avoid this.
  • First of all the 13 weeks average and the strength over a period of 13 weeks. Both the average and the strength are shown in the table below.
  • The amount of weeks that a currency is stronger than another currency can also be evaluated.
  • Besides these the "13 weeks Currency Classification" chart of each currency is also consulted. These have been updated and can be found in the article: "Forex Currency Score Classification for Wk13".





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Currency Score Comparison for Week 15 / 10 April 2016

"Comparison table" and the "Ranking and Rating list"
The Forex Currency Comparison Table compares each currency with its counterpart based on the Currency Score. For more information about the currency Score of this week you can read the article "Forex Ranking, Rating and Score" which is published every week together with this article.
By using the comparison table here below you get a view without the volatility and statistics as opposed to the "Ranking and Rating list". Only the strength of each currency against the counterparts is analyzed by using the Technical analysis charts of the 4 Time Frames that are also used for the "Ranking and Rating List".
The information from the Comparison Table is the source for calculating the "Ranking and Rating List" where this list uses additionally the volatility and statistics for creating the best and worst performer in the list from number 1 to 28.





"Comparison table" and the "Currency Score Chart"
The additional analysis of this table compared to the Currency Score table is that the Comparison Table compares the strength between the currencies of each pair. By subtracting the strength of the weaker currency from the stronger currency we have a way to compare each pair combination.
The comparison table provides a way to compare currencies from a longer term perspective of 13 weeks and also simultaneously taking the current trend into account. By coloring the currencies in the X and Y axis according to their Classification, see "Forex Currency Score Classification for Wk13", we can show what the best combinations are. In doing this we apply 2 rules to make it clear.
  1. First of all only better classified currencies in combination with weaker classified currencies are "Approved".
  2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
    • It means that each currency should be as far apart from each other as possible in the range from 1 to 8. This means that the classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact the half of the range it seems a safe approach for trading 2 currencies similarly classified.
    • Since each classification covers only 2 or 3 scores at the most it means that the currencies should be at least one classification apart from each other in the current week.
    • Even though they are in the same classification when looking at the 13 weeks average a currency may be in a weaker/stronger period and may even change its classification in the future. See the current classification for the coming period at the top of this article.



______________________________________

Putting the pieces together

Based on the last "3 months currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the JPY and CHF. These are strong currencies from a longer term perspective when looking at the last "3 months currency classification". For going short the same analysis can be done and the GBP and the AUD seem to fit best. These are weak or average currencies from a longer term perspective.

Some of these pairs comply for a longer term trade based on the Daily and Weekly chart. We will look at these ones here in a bit more detail. The ones that do not comply may be more interesting for the short term. See the article "Ranking, Rating and Score" for more details.
  • When analyzing the Weekly and Daily charts the best pairs for the coming week seem to be the GBP/JPY, GBP/CHF, GBP/CAD, USD/JPY, AUD/JPY, GBP/NZD , EUR/GBP, GBP/AUD, CAD/JPY, EUR/USD.
  • A crossed join between the best pairs in the "Ranking and Rating List", the "Currency Comparison Table" and the pairs with the best charts mentioned here above shows the following interesting pairs: GBP/JPY, GBP/CHF, GBP/CAD, USD/JPY, AUD/JPY, GBP/NZD , EUR/GBP, GBP/AUD.
    • The  EUR/USD is not in the "Currency Comparison Table".
    • The CAD/JPY is not mentioned as interesting pairs for the Ranking and Rating list.
The article "Ranking, Rating and Score" published this weekend contains the following interesting pairs

  • GBP/JPY with the USD/CAD
  • GBP/CAD with the USD/JPY
From these pairs only the USD/CAD does not seem to be interesting according to the mentioned crossed join here above.


______________________________________

The Forex "13 Weeks Currency Strength" and the "Comparison Table" provide meaningful data for my FxTaTrader strategy. Besides this I also use the "Forex Ranking, Rating and 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.

Forex Ranking, Rating and Score WK15

Welcome to my "Ranking, Rating and Score" article for the coming week, the article "Strength and Comparison" has also been published.
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 CAD(2X). The weaker currencies are the GBP(6X) followed by the USD(2X).
A nice combination for coming week may be e.g:
  • GBP/JPY with the USD/CAD
  • GBP/CAD with the USD/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 in the same Time Frame you may have better chances with lower risk.



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Ranking and Rating list for Week 15 / 10 April 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.






______________________________________

For analyzing the best pairs to trade looking from a longer term perspective the last 3 months currency classification can be used in support.
This was updated on 27 March 2016 and is provided here for reference purposes:
Strong: USD / JPY / CHF. The preferred range is from 6 to 8.
Average: EUR, AUD, NZD. The preferred range is from 3 to 5.
Weak: GBP, CAD. The preferred range is from 1 to 2.
The charts are provided in the following article: "Forex Currency Score Classification for Wk13".

When comparing the 3 months Currency Classification with the pairs mentioned in the Ranking List above some would then become less interesting. On the other hand these pairs are at the top of the list partly also because of their volatility. It seems best to take postitions for a short term then and take advantage of the high price movements.
With the FxTaTrader Strategy these pairs are not traded because these would be trades in the 4 Hour chart or in a lower Time Frame. Nevertheless they may offer good chances for the short term trader.




______________________________________

Currency Score for Week 15 / 10 April 2016

The Currency Score analysis is one of the parameters used for the Ranking and Rating list which is published also in this article. The Currency Score is 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 screenshot here below.




When comparing the 3 months Currency Classification with the recent Currency Score, as provided in the image above, we can determine the deviations. In the article "Forex Strength and Comparison" this is analyzed in more detail. Currencies with a high deviation seem less interesting to trade because they are less predictable. These currencies are at the moment e.g. the USD and the CAD. Unless these currencies offer a clear opportunity based on the longer term they are avoided.
In the article "Forex Strength and Comparison" we will look in more detail at the interesting pairs from a longer term perspective for trading in the Daily and Weekly chart. We will use the information from this article and analyze it further in more detail.




______________________________________

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. The Forex "Ranking and Rating list" and the "Score Chart" provide meaningful data for my FxTaTrader strategy. Besides this I also use the Forex "Strength and Comparison" 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, April 5, 2016

Forex Strength And Comparison For April

Welcome to my "Strength and Comparison" article for the coming month, the article "Ranking, Rating and Score" has also been published for this month.
For analyzing the best pairs to trade looking from a longer term perspective the last 12 months currency classification can be used in support.
This was updated on 3 January 2016 and is provided here for reference purposes:
Strong: USD / GBP / CHF. The preferred range is from 6 to 8.
Average: NZD, JPY. The preferred range is from 4 to 5.
Weak: EUR, AUD, CAD. The preferred range is from 1 to 3.
The charts were provided in the following article:  "Forex Currency Score Classification for January"


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12 Months Currency Score Strength for April / 2 April 2016

The 12 Months Currency Strength and the 12 Months Average are provided below. This data and the "12 months Currency Classification" are considered for deciding on the preferred range in which to trade. Because it is not ideal nor desired to change the range for a currency every single month, we perform several checks to avoid this.
  • First of all the 12 months average and the strength over a period of 12 months is determined/analysed. Both the average and the strength are shown in the table below.
  • The amount of months that a currency is stronger than another currency can also be evaluated.
  • Besides these the "12 monhts Currency Classification" chart of each currency is also consulted. These have been updated and can be found in the article: "Forex Currency Score Classification for January".





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Currency Score Comparison for Month April / 2 April 2016

"Comparison Table" and the "Ranking and Rating list"
The Forex Currency Comparison Table compares each currency with its counterpart based on the Currency Score. For more information about the Currency Score of this month you can read the article "Forex Ranking, Rating and Score" which is published every month together with this article.
By using the comparison table directly below you get a view without the volatility and statistics as opposed to the "Ranking and Rating List". Only the strength of each currency against the counterparts is analyzed by using the Technical analysis charts of the 3 Time Frames that are also used for the monthly "Ranking and Rating List".
The information from the Comparison Table is the source for calculating the monthly "Ranking and Rating List" where this list uses additionally the volatility and statistics for creating the best and worst performer in the list from number 1 to 28, whereby 1 is the best and 28 is the worst performer.




"Comparison Table" and the "Currency Score Chart"
The additional analysis of this table compared to the Currency Score table is that the Comparison Table compares the strength between the currencies of each pair. By subtracting the strength of the weaker currency from the stronger currency we have a way to compare each pair combination.
The Comparison Table provides a way to compare currencies from a longer term perspective of 12 months and also simultaneously taking the current trend into account. By coloring the currencies in the X and Y axis according to their Classification, see "Forex Currency Score Classification for January", we can show what the best combinations are. In doing this we apply 2 rules to make it clearer.
  1. First of all only better classified currencies in combination with weaker classified currencies are "Approved".
  2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
    • It means that each currency should be as far apart from each other as possible in the range from 1 to 8. This means that the classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact the half of the range it seems a safe approach for trading 2 currencies which are similarly classified.
    • Since each classification covers only 2 or 3 scores at the most it means that the currencies should be at least one classification apart from each other in the current month.
    • Even though they are in the same classification when looking at the 12 months average a currency may be in a weaker/stronger period and may even change its classification in the future. See the current classification for the coming period at the top of this article.


______________________________________

Putting the pieces together

The article "Ranking, Rating and Score" published with the "Ranking and Rating List" contains the following interesting pairs
  • GBP/CHF with the AUD/CAD
  • GBP/JPY with the AUD/CAD
  • GBP/AUD
Based on the last "12 months Currency Classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the CHF, NZD and the JPY. These are strong or average currencies from a longer term perspective when looking at the last "12 months Currency Classification". For going short the same analysis can be done and the EUR and the CAD seem to fit best. These are weak currencies from a longer term perspective.
Although the AUD is a weak currency from a longer term perspective it seems to be a good combination with the CAD which is also a weak currency.

Some of these pairs comply for a longer term trade based on the Monthly and Weekly chart. We will look at these ones here in a bit more detail. The ones that do not comply may be more interesting for the short term. See the article "Ranking, Rating and Score" for more details.
  • When analyzing the Monthly and Weekly charts the best pairs to trade for the coming week seem to be the GBP/AUD, GBP/NZD,  GBP/CHF, GBP/JPY, AUD/CAD, EUR/GBP, GBP/CAD, GBP/USD, USD/JPY.
  • A crossed join between the best pairs in the "Ranking and Rating List", the "Currency Comparison Table" and the pairs with the best charts mentioned here above shows the following interesting pairs: GBP/CHF,  AUD/CAD,   
    • The  GBP/AUD, GBP/NZD, GBP/JPY, EUR/GBP, GBP/CAD, GBP/USD and the USD/JPY are not in the "Currency Comparison Table".
    • The  GBP/NZD, EUR/GBP, GBP/CAD, GBP/USD and the USD/JPY are not mentioned in the interesting pairs for the Ranking and Rating list.


______________________________________

The Forex "12 Months Currency Strength" and the "Comparison Table" provide meaningful data for my FxTaTrader strategy. Besides this I also use the "Forex Ranking, Rating and 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 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 Ranking, Rating And Score for April

Welcome to my "Ranking, Rating and Score" article for the coming month, the article "Strength and Comparison" has also been published.
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: AUD(2X) followed by the CHF(2X) with the JPY(2X). The weaker currencies are the GBP(5X) followed by the CAD(2X).
A nice combination for coming month may be e.g:
  • GBP/CHF with the AUD/CAD
  • GBP/JPY with the AUD/CAD
  • GBP/AUD
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 in the same Time Frame you may have better chances with lower risk. For the GBP/AUD no other pair combinaion can be found.



______________________________________

Ranking and Rating list for Month April / 2 April 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 as the months change. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.






______________________________________

For analyzing the best pairs to trade looking from a longer term perspective the last 12 months currency classification can be used in support.
This was updated on 3 January 2016 and is provided here for reference purposes:
Strong: USD / GBP / CHF. The preferred range is from 6 to 8.
Average: NZD, JPY. The preferred range is from 4 to 5.
Weak: EUR, AUD, CAD. The preferred range is from 1 to 3.
The charts were provided in the article: "Forex Currency Score Classification for January"

When comparing the 12 months Currency Classification with the pairs mentioned in the Ranking List above some would then become less interesting. On the other hand these pairs are at the top of the list partly also because of their volatility. It seems best to take postitions for a shorter term then and take advantage of the high price movements.
With the Monthly FxTaTrader Strategy these pairs are not traded because these would be trades in the Daily chart or in a lower Time Frame. Nevertheless they may offer good chances for the short term trader.




______________________________________

Currency Score for Month April / 3 April 2016

The Currency Score analysis is one of the parameters used for the Ranking and Rating list which is published also in this article. The Currency Score is 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 the daily. The result of the technical analysis is the screenshot here below.




When comparing the 12 months currency classification with the recent Currency Score, as provided in the image above, we can determine the deviations. In the article "Forex Strength and Comparison" this is analyzed in more detail. Currencies with a high deviation seem less interesting to trade because they are less predictable. These currencies are at the moment e.g. the AUD, USD and the GBP. Unless these currencies offer a clear opportunity based on the longer term they are avoided.
In the article "Forex Strength and Comparison" we will look in more detail at the interesting pairs from a longer term perspective for trading in the Weekly and Monthly chart. We will use the information from this article and analyze it further in more detail.




______________________________________

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. The Forex "Ranking and Rating list" and the "Score Chart" provide meaningful data for my FxTaTrader strategy. Besides this I also use the Forex "Strength and Comparison" 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, April 3, 2016

Forex Strength and Comparison WK14

Welcome to my "Strength and Comparison" article for the coming week, the article "Ranking, Rating and Score" has also been published for this week.
For analyzing the best pairs to trade looking from a longer term perspective the last 3 months Currency Classification can be used in support.
This was updated on 27 March 2016 and is provided here for reference purposes:
Strong: USD / JPY / CHF. The preferred range is from 6 to 8.
Average: EUR, AUD, NZD. The preferred range is from 3 to 5.
Weak: GBP, CAD. The preferred range is from 1 to 2.
The charts were provided in the article:  "Forex Currency Score Classification for Wk13".



______________________________________

13 Weeks Currency Score Strength for Week 14 / 3 April 2016

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the "3 months currency classification" are considered for deciding on the preferred range. Because it is not ideal nor desired to change the range for a currency every single week, we perform several checks to avoid this.
  • First of all the 13 weeks average and the strength over a period of 13 weeks. Both the average and the strength are shown in the table below.
  • The amount of weeks that a currency is stronger than another currency can also be evaluated.
  • Besides these the "13 weeks Currency Classification" chart of each currency is also consulted. These have been updated and can be found in the article: "Forex Currency Score Classification for Wk13".




______________________________________

Currency Score Comparison for Week 14 / 3 April 2016

"Comparison table" and the "Ranking and Rating list"
The Forex Currency Comparison Table compares each currency with its counterpart based on the Currency Score. For more information about the currency Score of this week you can read the article "Forex Ranking, Rating and Score" which is published every week together with this article.
By using the comparison table here below you get a view without the volatility and statistics as opposed to the "Ranking and Rating list". Only the strength of each currency against the counterparts is analyzed by using the Technical analysis charts of the 4 Time Frames that are also used for the "Ranking and Rating List".
The information from the Comparison Table is the source for calculating the "Ranking and Rating List" where this list uses additionally the volatility and statistics for creating the best and worst performer in the list from number 1 to 28.



"Comparison table" and the "Currency Score Chart"
The additional analysis of this table compared to the Currency Score table is that the Comparison Table compares the strength between the currencies of each pair. By subtracting the strength of the weaker currency from the stronger currency we have a way to compare each pair combination.
The comparison table provides a way to compare currencies from a longer term perspective of 13 weeks and also simultaneously taking the current trend into account. By coloring the currencies in the X and Y axis according to their Classification, see "Forex Currency Score Classification for Wk13", we can show what the best combinations are. In doing this we apply 2 rules to make it clear.
  1. First of all only better classified currencies in combination with weaker classified currencies are "Approved".
  2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
    • It means that each currency should be as far apart from each other as possible in the range from 1 to 8. This means that the classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact the half of the range it seems a safe approach for trading 2 currencies similarly classified.
    • Since each classification covers only 2 or 3 scores at the most it means that the currencies should be at least one classification apart from each other in the current week.
    • Even though they are in the same classification when looking at the 13 weeks average a currency may be in a weaker/stronger period and may even change its classification in the future. See the current classification for the coming period at the top of this article.



______________________________________

Putting the pieces together

The article "Ranking, Rating and Score" published this weekend with the "Ranking and Rating List" contains the following interesting pairs
  • GBP/NZD with the AUD/CAD
  • GBP/AUD with the NZD/USD
  • AUD/USD with the GBP/CAD
Based on the last "3 months currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the AUD, NZD and CHF. These are strong or average currencies from a longer term perspective when looking at the last "3 months currency classification". For going short the same analysis can be done and the CAD and the GBP seem to fit best. These are weak currencies from a longer term perspective.

Some of these pairs comply for a longer term trade based on the Daily and Weekly chart. We will look at these ones here in a bit more detail. The ones that do not comply may be more interesting for the short term. See the article "Ranking, Rating and Score" for more details.
  • When analyzing the Weekly and Daily charts the best pairs for the coming week seem to be the GBP/AUD, GBP/NZD,  GBP/CHF, GBP/JPY, AUD/CAD, EUR/GBP, GBP/CAD, GBP/USD, USD/JPY.
  • A crossed join between the best pairs in the "Ranking and Rating List", the "Currency Comparison Table" and the pairs with the best charts mentioned here above shows the following interesting pairs: GBP/AUD, GBP/NZD, AUD/CAD.
    • The  GBP/CAD and the USD/JPY are not in the "Currency Comparison Table".
    • The GBP/CHF, GBP/JPY, EUR/GBP, GBP/USD and USD/JPY are not mentioned as interesting pairs for the Ranking and Rating list.


______________________________________

The Forex "13 Weeks Currency Strength" and the "Comparison Table" provide meaningful data for my FxTaTrader strategy. Besides this I also use the "Forex Ranking, Rating and 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.