FxTaTrader


Forex Technical Analysis based on experience and research.

Tuesday, May 31, 2016

Forex Strength And Comparison: June 2016

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.


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12 Months Currency Score Strength for Month June. Created 29 May 2016

The 12 Months Currency Strength and the 12 Months Average are provided here below. This data and the "12 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 month, we perform several checks to avoid this.
  1. First of all the strength over a period of 12 months. See each row for more information.
  2. Then the 12 months average, see the last row called "Avg. 12 M."
  3. The number of months 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 "12 monhts Currency Classification" chart of each currency is also consulted and compared.


The CHF is a strong Currency but getting weaker lately with a Score of 4,66. The GBP is classified as an average currency and having currently a score of 4,5. It is getting close to the CHF and in the last 12 months each were an equal amount of 6 months being stronger. Last month was clearly a winner for the GBP, see for more information the chart here below. These currencies may switch places in the classification in the coming period.





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Currency Score Comparison for Month June. Created 29 May 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

Based on the last "12 months currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the:
USD, JPY and the GBP
.
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 following currencies seem to fit best:
AUD, NZD and the EUR.
These are weak or average currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. These currencies are at the moment e.g. the:
GBP, CAD and the CHF.
Unless these currencies offer a clear opportunity based on the longer term they are avoided. However, these currencies may offer opportunities for the short term trader.


Some of these pairs comply for a longer term trade based on the Weekly and Monthly chart. We will look at these ones here in a bit more detail.

  • When analyzing the Monthly and Weekly charts the best pairs for the coming week seem to be the:
    AUD/CAD, AUD/JPY, AUD/NZD, CHF/JPY, EUR/AUD and the USD/CHF.
  • 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/JPY, CHF/JPY and the USD/CHF.
    • Only the EUR/AUD is not mentioned as "Approved" pair in the "Currency Comparison Table".
    • The AUD/CAD, AUD/NZD,  EUR/AUD are not mentioned in the Top 10 of the Ranking and Rating list. 


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The article "Ranking, Rating and Score" published this weekend contains the following interesting pairs:
  • AUD/JPY with the GBP/NZD
  • AUD/USD with the GBP/CHF
  • GBP/AUD with the USD/CHF
  • CHF/JPY with the AUD/USD
  • NZD/JPY with the GBP/AUD
According to the crossed join here above only the following pairs remain interesting: AUD/JPY, CHF/JPY and the USD/CHF.
However, when comparing with the "Currency Comparison Table" it may offer more possilbities, like e.g. the GBP/AUD.


Besides this article I also use the Forex "Ranking, Rating and Score" which is also available once a week on my blog at FxTaTrader.com. In the article "Ranking, Rating and Score" we look in more detail at the absolute position of the currencies and pairs.

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. 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: June 2016

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: JPY(6X) followed by the GBP(4X) and the USD(2X). The weaker currencies are the AUD(3X) with the CHF(3X) followed by the NZD(2X).
A nice combination for coming month may be e.g:
  • AUD/JPY with the GBP/NZD
  • AUD/USD with the GBP/CHF
  • GBP/AUD with the USD/CHF
  • CHF/JPY with the AUD/USD
  • NZD/JPY with the 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. Generally speaking, 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. In any case it seems always better to spread risk and this can be done in many different ways.
When trading with more than 2 micro lots it is a good idea to have a diversification and depending on your bias it may offer opportunities by going long or short on a specific currency trading it against different other currencies.



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Ranking and Rating list for Month June. Created 29 May 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.






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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.




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Currency Score for Month June. Created 29 May 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 GBP, CAD and the CHF. Unless these currencies offer a clear opportunity based on the longer term they are avoided.

Besides this article I also use the Forex "Strength and Comparison" which is also available once a month on my blog at FxTaTrader.com. In the article "Ranking, Rating and Score" we look in more detail at the relative position of the currencies and pairs. 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, "Ranking, Rating and Score", 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. 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, May 29, 2016

Forex Strength and Comparison WK22

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 15 May 2016 and is provided here for reference purposes:
Strong: JPY, CAD, CHF. The preferred range is from 6 to 8.
Average: USD, AUD, NZD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.


______________________________________

13 Weeks Currency Score Strength for Week 22 / 29 May 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, see the last row called "Avg. 13 wks."
  3. The number 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.





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Currency Score Comparison for Week 22 / 29 May 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 directly below you can 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 Wk20", 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:
USD and the 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 following currencies seem to fit best:
AUD, NZD and the EUR.
These are weak or average currencies from a longer term perspective.

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, GBP, AUD and the CHF.
Unless these currencies offer a clear opportunity based on the longer term they are avoided. However, these currencies may offer opportunities for the short term trader.


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.
  • When analyzing the Weekly and Daily charts the best pairs for the coming week seem to be the:
    AUD/CAD, AUD/JPY, AUD/NZD, AUD/USD, CHF/JPY, EUR/AUD, EUR/JPY and the USD/CHF.
  • 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, AUD/JPY and the AUD/USD.
    • The AUD/NZD, CHF/JPY, EUR/AUD, EUR/JPY and the USD/CHF are not mentioned as "Approved" pair in the "Currency Comparison Table".
    • The EUR/JPY and the USD/CHF 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:
  • AUD/USD with the CAD/JPY
  • AUD/JPY with the USD/CAD
  • AUD/JPY with the USD/CHF
  • USD/CAD with the CHF/JPY
Only the AUD/JPY and the AUD/USD seem to be interesting according to the combinations mentioned in the crossed join here above.
Same for the "Currency Comparison Table", only the AUD/JPY and the AUD/USD are mentioned as "Approved".


Besides this article I also use the Forex "Ranking, Rating and Score" which is also available once a week on my blog at FxTaTrader.com. In the article "Ranking, Rating and Score" we look in more detail at the absolute position of the currencies and pairs.

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. 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 WK22

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(3X) with the USD(3X). The weaker currencies are the AUD(5X) followed by the CHF(3X) and the CAD(2X).
A nice combination for coming week may be e.g:
  • AUD/USD with the CAD/JPY
  • AUD/JPY with the USD/CAD
  • AUD/JPY with the USD/CHF
  • USD/CAD with the CHF/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. Generally speaking, 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. In any case it seems always better to spread risk and this can be done in many different ways.
When trading with more than 2 micro lots it is a good idea to have a diversification and depending on your bias it may offer opportunities by going long or short on a specific currency trading it against different other currencies.



______________________________________

Ranking and Rating list for Week 22 / 29 May 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 15 May 2016 and is provided here for reference purposes:
Strong: JPY, CAD, CHF. The preferred range is from 6 to 8.
Average: USD, AUD, 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 Wk20".

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 positions for a short period 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 22 / 29 May 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, GBP, AUD and the CHF. Unless these currencies offer a clear opportunity based on the longer term they are avoided.


Besides this article I also use the Forex "Strength and Comparison" which is also available once a week on my blog at FxTaTrader.com. In the article "Ranking, Rating and Score" we look in more detail at the relative position of the currencies and pairs. 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, "Ranking, Rating and Score", 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. 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, May 22, 2016

Forex Strength and Comparison WK21

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 15 May 2016 and is provided here for reference purposes:
Strong: JPY, CAD, CHF. The preferred range is from 6 to 8.
Average: USD, AUD, 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 Wk20".



______________________________________

13 Weeks Currency Score Strength for Week 21 / 22 May 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, see the last row called "Avg. 13 wks."
  3. The number 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 Wk20".


The AUD and the CHF are close to each other with their score. When looking at the Weekly TA Chart it is clear to see that this pair is consolidating.
  • Price is in the Ichimoku cloud with no clear direction.
  • It is below both averages; Tenkan Sen and Kijun Sen but when looking at the MACD it is in positive area.
  • The pair made several tops around 0,7550 in the last half year and is making higher bottoms.


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Currency Score Comparison for Week 21 / 22 May 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 directly below you can 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 Wk20", 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:
USD and the 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 following currencies seem to fit best:
AUD and the EUR.
These are weak or average currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. These currencies are at the moment e.g. the:
GBP, CAD and the CHF.
Unless these currencies offer a clear opportunity based on the longer term they are avoided. However, these currencies may offer opportunities for the short term trader.


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.

  • When analyzing the Weekly and Daily charts the best pairs for the coming week seem to be the:
    AUD/USD, AUD/JPY, CHF/JPY, CAD/JPY,  AUD/NZD, EUR/JPY and the NZD/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/USD, AUD/JPY, CHF/JPY, CAD/JPY,  AUD/NZD and the NZD/JPY.
    • All pairs are mentioned as "Approved" pair in the "Currency Comparison Table".
    • The EUR/JPY is 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:

  • AUD/USD with the CAD/JPY
  • AUD/JPY with the USD/CAD
  • AUD/JPY with the USD/CHF
  • USD/CAD with the CHF/JPY
Almost all the pairs seem to be interesting according to the combinations mentioned in the crossed join here above except for the USD/CAD and the USD/CHF.
Same for the "Currency Comparison Table", the USD/CAD and the USD/CHF are not mentioned as "Approved".


Besides this article I also use the Forex "Ranking, Rating and Score" which is also available once a week on my blog at FxTaTrader.com. In the article "Ranking, Rating and Score" we look in more detail at the absolute position of the currencies and pairs.

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. 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 WK21

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(3X) with the USD(3X). The weaker currencies are the AUD(5X) followed by the CHF(3X) and the CAD(2X)A nice combination for coming week may be e.g:
  • AUD/USD with the CAD/JPY
  • AUD/JPY with the USD/CAD
  • AUD/JPY with the USD/CHF
  • USD/CAD with the CHF/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. Generally speaking, 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. In any case it seems always better to spread risk and this can be done in many different ways.
When trading with more than 2 micro lots it is a good idea to have a diversification and depending on your bias it may offer opportunities by going long or short on a specific currency trading it against different other currencies.


______________________________________

Ranking and Rating list for Week 21 / 22 May 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 15 May 2016 and is provided here for reference purposes:
Strong: JPY, CAD, CHF. The preferred range is from 6 to 8.
Average: USD, AUD, 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 Wk20".

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 positions for a short period 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 21 / 22 May 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 GBP, CAD and the CHF. Unless these currencies offer a clear opportunity based on the longer term they are avoided.


Besides this article I also use the Forex "Strength and Comparison" which is also available once a week on my blog at FxTaTrader.com. In the article "Ranking, Rating and Score" we look in more detail at the relative position of the currencies and pairs. 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, "Ranking, Rating and Score", 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. 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, May 15, 2016

Forex Strength and Comparison WK20

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 15 May 2016 and is provided here for reference purposes:
Strong: JPY, CAD, CHF. The preferred range is from 6 to 8.
Average: USD, AUD, 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 Wk20".



______________________________________

13 Weeks Currency Score Strength for Week 20 / 15 May 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, see the last row called "Avg. 13 wks."
  3. The number 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 Wk20".


The AUD keeps surprising and has for the third time on a row a score of 1 after upgrading the classification to "Strong". It has now a lower score as the CAD. These pairs switch places in the classification. See for more information the chart here below and the charts provided in the article:  "Forex Currency Score Classification for Wk20".


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Currency Score Comparison for Week 20 / 15 May 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 directly below you can 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 Wk20", 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 the 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 following currencies seem to fit best:
AUD, GBP and the NZD.
These are weak or average currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. These currencies are at the moment e.g. the:
EUR and the AUD.
Unless these currencies offer a clear opportunity based on the longer term they are avoided. However, these currencies may offer opportunities for the short term trader.

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.
  • When analyzing the Weekly and Daily charts the best pairs for the coming week seem to be the:
    AUD/JPY, GBP/JPY, AUD/USD, CHF/JPY, AUD/CHF and the EUR/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/JPY, GBP/JPY, AUD/USD, CHF/JPY and the AUD/CHF.
    • All pairs are mentioned as "Approved" pair in the "Currency Comparison Table".
    • The EUR/JPY is 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:
  • AUD/JPY with the GBP/USD
  • GBP/JPY with the AUD/USD
Almost all the pairs seem to be interesting according to the combinations mentioned in the crossed join here above except for the GBP/USD.
However, all these pairs seem to be interesting according to the "Currency Comparison Table".


______________________________________

Besides this article I also use the Forex "Ranking, Rating and Score" which is also available once a week on my blog at FxTaTrader.com. In the article "Ranking, Rating and Score" we look in more detail at the absolute position of the currencies and pairs.

It is recommended to read the page Currency score explained and Models in practice for a better understanding of the article. 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 WK20

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(5X) followed by the USD(2X). The weaker currencies are the AUD(5X) followed by the GBP(2X).
A nice combination for coming week may be e.g:
  • AUD/JPY with the GBP/USD
  • GBP/JPY with the AUD/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. Generally speaking, 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. In any case it seems always better to spread risk and this can be done in many different ways.
When trading with more than 2 micro losts then a good diversification is a good idea and depending on your bias it may offer opportunities by going long or short on a specific currency trading it against different other currencies.


______________________________________

Ranking and Rating list for Week 20 / 15 May 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 15 May 2016 and is provided here for reference purposes:
Strong: JPY, CAD, CHF. The preferred range is from 6 to 8.
Average: USD, AUD, 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 Wk20".

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 positions for a short period 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 20 / 15 May 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 EUR and the AUD. Unless these currencies offer a clear opportunity based on the longer term they are avoided.


Besides this article I also use the Forex "Strength and Comparison" which is also available once a week on my blog at FxTaTrader.com. In the article "Ranking, Rating and Score" we look in more detail at the relative position of the currencies and pairs. 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, "Ranking, Rating and Score", 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. 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 Classification for Wk20

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.


______________________________________

Last 3 months currency classification updated on Week 20, 15 May 2016

The last 3 months currency classification from a longer term perspective are provided here with the new charts:
  • Strong: JPY / CAD / CHF. The preferred range is from 6 to 8.
  • Average: USD / AUD / 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 switch places. More information can be read in this article and in the articles "Forex Strength and comparison" of this week.
______________________________________

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. 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.

Sunday, May 8, 2016

Forex Strength and Comparison WK19

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 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".




______________________________________

13 Weeks Currency Score Strength for Week 19 / 8 May 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, see the last row called "Avg. 13 wks."
  3. The number 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".


The AUD keeps surprising and has for the second time on a row a score of 1 after upgrading the classification to "Strong". It has now the same score as the CAD but the AUD was 7 times stronger compared to the CAD in the last 13 weeks. The currency remains strong over a longer period but needs to recover soon to remain a "Strong" currency.


______________________________________

Currency Score Comparison for Week 19 / 8 May 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 directly below you can 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.




______________________________________

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, USD and NZD
.
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 following currencies seem to fit best:
GBP and the CAD.
These are weak or average currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. These currencies are at the moment e.g. the:
EUR and the AUD.
Unless these currencies offer a clear opportunity based on the longer term they are avoided. However, these currencies may offer opportunities for the short term trader.


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.
  • When analyzing the Weekly and Daily charts the best pairs for the coming week seem to be the:
    GBP/JPY, AUD/JPY, CAD/JPY, CHF/JPY, NZD/JPY and 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: 
    GBP/JPY, AUD/JPY, CAD/JPY, CHF/JPY, NZD/JPY
    .
    • All pairs are mentioned as "Approved" pair in the "Currency Comparison Table".
    • All pairs are 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/JPY with the EUR/CAD
  • AUD/JPY with the EUR/GBP
  • EUR/AUD with the USD/JPY
  • CAD/JPY with the AUD/USD

From these pairs only the JPY pairs seem to be interesting according to the combinations mentioned in the crossed join here above.
Same is the case if we compare these pairs only with the "Currency Comparison Table".



______________________________________

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.