Forex Technical Analysis based on experience and research.

Monday, May 2, 2016

Forex Ranking, Rating And Score: May 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(5X) followed by the CAD(3X). The weaker currencies are the GBP(4X) followed by the AUD(2X) with the EUR(2X).
A nice combination for coming month may be e.g:
  • GBP/JPY with the AUD/CAD
  • AUD/JPY with the GBP/CAD
  • EUR/CAD with the GBP/JPY
  • EUR/JPY with the GBP/CAD
These are just a few examples and many other combinations are possible. The mentioned pair combinations can be traded at the same time according to the rules of the FxTaTrader strategy because these are all different currencies. 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.


Ranking and Rating list for Month May / Created: 30 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 30 April 2016 and is provided here for reference purposes:
Strong: USD / JPY / CHF. The preferred range is from 6 to 8.
Average: GBP, NZD. 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 Month Classification May 2016"

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 for these to take positions for the short term 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 Month May / Created: 30 April 2016

The Currency Score analysis is one of the parameters used for the Ranking and Rating list which is also published with 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 USD, CAD, 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 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.


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.