FxTaTrader


Forex Technical Analysis based on experience and research.

Sunday, June 26, 2016

Forex Strength and Comparison WK26

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 26 June 2016 and is provided here for reference purposes:
Strong: USD, JPY, NZD. The preferred range is from 6 to 8.
Average: EUR, CHF, CAD. The preferred range is from 4 to 6.
Weak: AUD, GBP. The preferred range is from 1 to 2.



______________________________________

13 Weeks Currency Score Strength for Week 26 / 26 June 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.


As can be see in the "Currency Strength Table" here above the USD and the NZD has gained strength lately. For that reason these currencies has changed classifiction as from today and are now classified as a strong currency. Here below is a chart with the Currency Scores of the USD and the NZD.
The CHF has lost strength lately compared to the USD, JPY and the NZD. For that reason this currency has now a classification of an average currency.



_____________________________________
Currency Score Comparison for Week 26 / 26 June 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 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, JPY and the 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:
AUD, CAD, EUR and the GBP.
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, GBP/USD, GBP,NZD, EUR/JPY, GBP/CHF, CAD/JPY, GBP/AUD, AUD/JPY, GBP/CAD, CHF/JPY, EUR/NZD, EUR/USD, USD/JPY, NZD/CAD, NZD/JPY and the EUR/AUD.
  • 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, GBP/USD, GBP,NZD, EUR/JPY, GBP/CHF, CAD/JPY,  AUD/JPY, GBP/CAD and the CHF/JPY.
    • The GBP/AUD is not mentioned as "Approved" pair in the "Currency Comparison Table".
    • The EUR/NZD, EUR/USD, USD/JPY, NZD/CAD, NZD/JPY and the EUR/AUD 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/JPY with the NZD/CAD
  • GBP/USD with the EUR/NZD
  • GBP/NZD with the EUR/JPY
  • EUR/USD with the CAD/JPY
The NZD/CAD, EUR/NZD and the EUR/USD are not mentioned as interesting according to the combinations mentioned in the crossed join here above. All the other pairs mentioned here have the preference according to the order in the Top 10 and the position in the "Currency Comparison Table" and how the charts are looking.



______________________________________

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 WK26

Welcome to my "Ranking, Rating and Score" article for the coming week, the article "Strength and Comparison" has also been published.
We will be looking this week at the Top 15 because otherwise the only strong currency would be the JPY and the only weak currency the GBP.
When looking at the Top 15 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(7X) followed by the NZD(3X) and the USD(2X). The weaker currencies are the GBP(6X) followed by the EUR(3X) and the CAD(2X).
A nice combination for coming week may be e.g:

  • GBP/JPY with the NZD/CAD
  • GBP/USD with the EUR/NZD
  • GBP/NZD with the EUR/JPY
  • EUR/USD with the CAD/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 26 / 26 June 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 26 June 2016 and is provided here for reference purposes:
Strong: USD, JPY, NZD. The preferred range is from 6 to 8.
Average: EUR, CHF, CAD. The preferred range is from 4 to 6.
Weak: AUD, GBP. The preferred range is from 1 to 2.

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 26 / 26 June 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.

Sunday, June 19, 2016

Forex Strength and Comparison WK25

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 19 June 2016 and is provided here for reference purposes:
Strong: JPY, CHF. The preferred range is from 7 to 8.
Average: USD, EUR, CAD, NZD. The preferred range is from 3 to 6.
Weak: AUD, GBP. The preferred range is from 1 to 2.



______________________________________

13 Weeks Currency Score Strength for Week 25 / 19 June 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.


As can be see in the "Currency Strength Table" here above the CAD has lost strength lately. For that reason the currency has changed classifiction as from today and is now classified as an average currency. The Currency score is lower than the NZD which is also an average currency at the moment.
Another thing that can be noted is the upcoming strength of the USD which is now an average currency. It has at the moment the same Currency Score as the CHF which is a strong currency. However the CHF is clearly stronger in the last weeks. If the USD remains strong next week then it will be clasified as a strong currency. Here below is a chart with the Currency Scores of the USD and the CAD.




_____________________________________
Currency Score Comparison for Week 25 / 19 June 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 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, CHF and the 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:
AUD, EUR and the GBP.
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.
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, EUR/JPY, AUD/JPY, CAD/JPY, EUR/NZD, USD/JPY, AUD/CHF, NZD/JPY, AUD/NZD and the 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/JPY, EUR/JPY, AUD/JPY, CAD/JPY, EUR/NZD and the USD/JPY.
    • The CHF/JPY is not mentioned as "Approved" pair in the "Currency Comparison Table".
    • The AUD/CHF, NZD/JPY, AUD/NZD and the CHF/JPY 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/JPY with the EUR/CHF
  • GBP/CHF with the EUR/NZD
  • EUR/JPY with the GBP/NZD
Only the GBP/JPY, EUR/NZD and the EUR/JPY are interesting according to the combinations mentioned in the crossed join here above.


______________________________________

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 WK25

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 CHF(2X) with the NZD(2X). The weaker currencies are the GBP(4X) followed by the EUR(3X).
A nice combination for coming week may be e.g:
  • GBP/JPY with the EUR/CHF
  • GBP/CHF with the EUR/NZD
  • EUR/JPY with the GBP/NZD
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 25 / 19 June 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 19 June 2016 and is provided here for reference purposes: 
Strong: JPY, CHF. The preferred range is from 7 to 8.
Average: USD, EUR, CAD, NZD. The preferred range is from 3 to 6.
Weak: AUD, GBP. The preferred range is from 1 to 2.
More information can be found in the article "Strength and Comparison" of this week.

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 25 / 19 June 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. 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, June 12, 2016

Forex Strength and Comparison WK24

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 5 June 2016 and is provided here for reference purposes:
Strong: JPY, CAD, CHF. The preferred range is from 6 to 8.
Average: USD, EUR, NZD. The preferred range is from 3 to 5.
Weak: AUD, GBP. The preferred range is from 1 to 2.
The charts were provided in the article:  "Forex Currency Score Classification for Wk23".



______________________________________

13 Weeks Currency Score Strength for Week 24 / 12 June 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 Wk23".





_____________________________________
Currency Score Comparison for Week 24 / 12 June 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 Wk23", 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, NZD and the 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 following currencies seem to fit best:
AUD, EUR and the GBP.
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 NZD.
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, GBP/NZD, EUR/JPY, EUR/NZD, AUD/JPY, AUD/NZD and the CAD/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, GBP/NZD, EUR/JPY, EUR/NZD, AUD/JPY.
    • The CAD/JPY is not mentioned as "Approved" pair in the "Currency Comparison Table".
    • The AUD/NZD and the CAD/JPY 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/JPY with the EUR/NZD
Both pairs are interesting according to the combinations mentioned in the crossed join here above.




______________________________________

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 WK24

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 NZD(2X). The weaker currencies are the GBP(6X) followed by the EUR(2X).
A nice combination for coming week may be e.g:
  • GBP/JPY with the EUR/NZD
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 Week 24 / 12 June 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 on 5 June 2016 and is provided here for reference purposes: 
Strong: JPY, CAD, CHF. The preferred range is from 6 to 8.
Average: USD, eur, NZD. The preferred range is from 3 to 5.
Weak: AUD, GBP. The preferred range is from 1 to 2.

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.


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Currency Score for Week 24 / 12 June 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 NZD. 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, June 5, 2016

Forex Strength and Comparison WK23

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 5 June 2016 and is provided here for reference purposes:
Strong: JPY, CAD, CHF. The preferred range is from 6 to 8.
Average: USD, EUR, NZD. The preferred range is from 3 to 5.
Weak: AUD, GBP. The preferred range is from 1 to 2.
The charts were provided in the article:  "Forex Currency Score Classification for Wk23".




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13 Weeks Currency Score Strength for Week 23 / 5 June 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 Wk23".


In week 20 the AUD switched places with the CAD and this week it is switching with the EUR. The AUD has now the classification of a weak currency.
  • The EUR had 7 times a higher score in the last 13 weeks.
  • When looking at the Classification chart itself it is clear to see that the EUR is stronger lately.
  • When looking at the Monthly, Weekly and Daily charts of this specific pair they are als showing weakness for the AUD. The pair is in all the charts above the Ichimoku Cloud and having a MACD in positive area. This makes the pair interesting for taking Long positions.



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Currency Score Comparison for Week 23 / 5 June 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 Wk23", 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:
JPY and the 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:
AUD and the GBP.
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:
NZD and the CAD.
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, USD/JPY, AUD/NZD.
  • 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, USD/JPY and the AUD/NZD..
    • The CHF/JPY is not mentioned as "Approved" pair in the "Currency Comparison Table".
    • The CHF/JPY, EUR/AUD and the EUR/JPY 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:
  • GBP/JPY with the NZD/CAD
  • GBP/NZD with the USD/JPY
  • AUD/JPY with the NZD/CAD
  • CAD/JPY with the AUD/NZD
Except for the AUD/NZD the other 2 NZD pairs, NZD/CAD and the GBP/NZD, seem not to be interesting according to the combinations mentioned in the crossed join here above.
In the "Currency Comparison Table", only the NZD/CAD is 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 WK23

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 NZD(3X). The weaker currencies are the GBP(5X) followed by the AUD(2X), USD(2X) and the CAD(2X).
A nice combination for coming week may be e.g:
  • GBP/JPY with the NZD/CAD
  • GBP/NZD with the USD/JPY
  • AUD/JPY with the NZD/CAD
  • CAD/JPY with the AUD/NZD
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 23 / 5 June 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 5 June 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.

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 23 / 5 June 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 NZD and the CAD. 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 Wk23

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 23, 5 June 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 / EUR / NZD. The preferred range is from 3 to 5.
  • Weak: AUD / GBP. The preferred range is from 1 to 2.
The AUD and the EUR switch places. More information can be read in this article and in the articles "Forex Strength and comparison" of this week.


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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.



______________________________________ 

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.