FxTaTrader


Forex Technical Analysis based on experience and research.

Sunday, April 30, 2017

Forex Strength and Comparison for Week 18 / 2017

In the Currency Strength table, the GBP was the strongest currency while the CAD was the weakest. There were some significant changes last week with the USD and EUR gaining 3 while the JPY lost 4 points and the NZD 3 points. The other currencies remained around the same level of last week with a maximum difference of just 1 point.

______________________________________

 13 Weeks Currency Score Strength

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the "13 weeks 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 the last 13 weeks is considered. See each row for more information.
   2. Next, the 13 weeks average is considered, see the last row called "Avg. 13 wks."
   3. The number of weeks that a currency was stronger than another currency can also be considered.
   4. The Technical Analysis (TA) Charts for each Time Frame could also be consulted.



For analyzing the best pairs to trade looking from a longer-term perspective the last 13 weeks Currency Classification can be used in support.
This was updated on 9 April 2017 and is provided here for reference purposes:
Strong: USD, JPY, AUD. The preferred range is from 6 to 8.
Neutral: CHF, NZD, CAD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When looking at the Average 13 wks. Score the JPY is the strongest of all and the EUR the weakest.
The currencies are grouped together around a level which makes clear to what classification they fit best. It is clear to see in the Avg. 13 wks. values to what groups the currencies belong. This is not the case for the GBP which had 5 strong weeks in a row lately. It is very near to the CAD which is a Neutral currency. However, the CAD was also 7 times the stronger currency in the last 13 weeks compared to the GBP. For now, the GBP remains a weak currency but it may become a Neutral currency in the coming period.



_____________________________________

Classification review

This week we take a look at the weak currencies. These are getting very strong lately and the GBP is even the strongest currency of last week. This currency started 5 weeks ago with an uptrend which can clearly be seen in the chart. Below you can see the Weekly Currency Score Chart with the 6 months' data as a reference.



_____________________________________

Currency Score Comparison

 "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 additionally uses the volatility and statistics for creating the best and worst performer in the list from number 1 to 28.

The information is published once a week and the rates change during the week. The mentioned scores also change and different opportunities may show up during the week. There are many ways to follow the rate changes during the week. This can be done e.g. by looking at the charts of course and checking e.g. the Ichimoku and/or MACD in the Daily and 4 Hours chart. There are also many tools, apps and websites where the development of rates of currencies is shown in different automated ways. This may be by pips or percentage difference or by comparing the values of indicators like the RSI, Moving Averages, MACD, Ichimoku etc. On my blog is a Heatmap available that can be of use also.





"Comparison table" and the "Currency Score Chart"

The additional value 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 clearer.

   1. First of all, only better-classified currencies in combination with weaker classified currencies are Approved when there is a Currency Score difference of at least 1 in the current week.
   2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
   3. It means that each currency should be as far apart from each other as possible in the range from 1 to 8. The classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact at the half of the range it seems a safe approach for trading 2 currencies which are similarly classified.
   4. Even though currencies may be in the same classification 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 beginning of this article.



______________________________________

Putting the pieces together

Based on the last "13 Weeks currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the:
USD and CHF.
These are Strong or Neutral currencies from a longer term perspective when looking at the last "13 Weeks currency classification".

For going short the same analysis can be done and the following currencies seem to fit best:
NZD and CAD.
These are Weak or Neutral currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. A good example now is/are e.g. the:
GBP, EUR and AUD.



______________________________________

Besides this article, I also use the Forex "Ranking, Rating and Score" which is also available once a week on my blog. 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.

Forex Ranking, Rating and Score for Week 18 / 2017

 The Top 10 of the Ranking and Rating list for the coming week shows the following stronger currencies being well represented for going long: the GBP(4X) followed by the USD(3X). The weaker currencies are the CAD(4X) followed by the NZD(3X).
A nice combination for coming week may be e.g:
  • GBP/CAD with the NZD/USD
  • GBP/NZD with the USD/CAD

______________________________________

Ranking and Rating list

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 for 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 13 weeks Currency Classification can be used in support.
This was updated on 9 April 2017 and is provided here for reference purposes:
Strong: USD, JPY, AUD. The preferred range is from 6 to 8.
Neutral: CHF, NZD, CAD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When comparing the 13 weeks 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 Chart

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 13 weeks 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.


______________________________________

Besides this article, I also use the Forex "Strength and Comparison" which is also available once a week on my blog. In that article, 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.

Sunday, April 23, 2017

Forex Strength and Comparison for Week 17 / 2017

In the Currency Strength table, the JPY was again the strongest currency while the CAD was the weakest. There were some significant changes last week with the CHF gaining 4 points and the EUR 2 points. The AUD lost 5 points and the CAD 2 points. The other currencies remained around the same level of last week with a maximum difference of just 1 point.


______________________________________

 13 Weeks Currency Score Strength

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the "13 weeks 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 the last 13 weeks is considered. See each row for more information.
   2. Next, the 13 weeks average is considered, see the last row called "Avg. 13 wks."
   3. The number of weeks that a currency was stronger than another currency can also be considered.
   4. The Technical Analysis (TA) Charts for each Time Frame could also be consulted.



For analyzing the best pairs to trade looking from a longer-term perspective the last 13 weeks Currency Classification can be used in support.
This was updated on 9 April 2017 and is provided here for reference purposes:
Strong: USD, JPY, AUD. The preferred range is from 6 to 8.
Neutral: CHF, NZD, CAD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When looking at the Average 13 wks. Score the AUD remains the strongest of all even after having to weeks of a low score during the last 3 weeks. The EUR remains the weakest and after that the GBP which had 4 strong weeks in a row lately. The currencies are grouped together around a level which makes clear to what classification they fit best. It is clear to see in the Avg. 13 wks. values to what groups the currencies belong.


_____________________________________

Classification review

This week we take a look at the strong currencies. The AUD is very volatile lately by going in the last 4 weeks to scores of 7 and 2. These are scores resp. in the Strong and Weak range.
The USD is less volatile but is lately having more scores in the range of Neutral currencies with sometimes making a top in the range of the Strong currencies. Actually, this is the case in the last 13 weeks. In the 13 weeks before that, it was clearly almost all the time in the range of the Strong currencies.
The JPY is clearly back on track after the strong dip it had in December last year. It is the strongest currency of last week and the second strongest when looking at the Average 13 wks. score being close behind the AUD. The JPY had in the last 6 weeks 4 scores of 8 and 2 scores of 7 and in the 6 weeks before that scores within the Neutral and Strong range.

For the moment these currencies will remain strong and it seems that the JPY may become the one with the highest Average 13 wks. score in the near future. The USD is the weakest of the Strong currencies by having a score of around 0,5 point lower to the other strong currencies. However, it is still too far from the neutral currencies to become one in the near future.
Below you can see the Weekly Currency Score Chart with the 6 months' data as a reference.




_____________________________________

Currency Score Comparison

 "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 additionally uses the volatility and statistics for creating the best and worst performer in the list from number 1 to 28.

The information is published once a week and the rates change during the week. The mentioned scores also change and different opportunities may show up during the week. There are many ways to follow the rate changes during the week. This can be done e.g. by looking at the charts of course and checking e.g. the Ichimoku and/or MACD in the Daily and 4 Hours chart. There are also many tools, apps and websites where the development of rates of currencies is shown in different automated ways. This may be by pips or percentage difference or by comparing the values of indicators like the RSI, Moving Averages, MACD, Ichimoku etc. On my blog is a Heatmap available that can be of use also.





"Comparison table" and the "Currency Score Chart"

The additional value 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 clearer.

   1. First of all, only better-classified currencies in combination with weaker classified currencies are Approved when there is a Currency Score difference of at least 1 in the current week.
   2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
   3. It means that each currency should be as far apart from each other as possible in the range from 1 to 8. The classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact at the half of the range it seems a safe approach for trading 2 currencies which are similarly classified.
   4. Even though currencies may be in the same classification 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 beginning of this article.



______________________________________

Putting the pieces together

Based on the last "13 Weeks currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the:
JPY and CHF.
These are Strong or Neutral currencies from a longer term perspective when looking at the last "13 Weeks currency classification".

For going short the same analysis can be done and the following currencies seem to fit best:
EUR and CAD.
These are Weak or Neutral currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. A good example now is/are e.g. the:
GBP and AUD.



______________________________________

Besides this article, I also use the Forex "Ranking, Rating and Score" which is also available once a week on my blog. 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.

Forex Ranking, Rating and Score for Week 17 / 2017

 The Top 10 of the Ranking and Rating list for the coming week shows the following stronger currencies being well represented for going long: the JPY(4X) with the GBP(4X). The weaker currencies are the CAD(4X) followed by the AUD(2X) with the EUR(2X).
A nice combination for coming week may be e.g:
  • CAD/JPY with the GBP/AUD
  • GBP/CAD with the EUR/JPY
  • AUD/JPY with the GBP/CAD


______________________________________

Ranking and Rating list

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 for 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 13 weeks Currency Classification can be used in support.
This was updated on 9 April 2017 and is provided here for reference purposes:
Strong: USD, JPY, AUD. The preferred range is from 6 to 8.
Neutral: CHF, NZD, CAD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When comparing the 13 weeks 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 Chart

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 13 weeks 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.


______________________________________

Besides this article, I also use the Forex "Strength and Comparison" which is also available once a week on my blog. In that article, 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.

Sunday, April 16, 2017

Forex Strength and Comparison for Week 16 / 2017

In the Currency Strength table, the JPY was the strongest currency while the EUR was the weakest. There were some significant changes last week with the AUD gaining 5 points and the USD losing 4 points. The CHF and CAD lost 3 points. The other currencies remained around the same level of last week with a maximum difference of just 2 points.

______________________________________

 13 Weeks Currency Score Strength

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the "13 weeks 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 the last 13 weeks is considered. See each row for more information.
   2. Next, the 13 weeks average is considered, see the last row called "Avg. 13 wks."
   3. The number of weeks that a currency was stronger than another currency can also be considered.
   4. The Technical Analysis (TA) Charts for each Time Frame could also be consulted.


For analyzing the best pairs to trade looking from a longer-term perspective the last 13 weeks Currency Classification can be used in support.
This was updated on 9 April 2017 and is provided here for reference purposes:
Strong: USD, JPY, AUD. The preferred range is from 6 to 8.
Neutral: CHF, NZD, CAD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When looking at the Average 13 wks. Score the AUD remains the strongest of all while the GBP and the EUR remain the weakest. The currencies are grouped together around a level which makes clear to what classification they fit best.
It is clear to see in the Avg. 13 wks. values to what groups the currencies belong. The CAD is at the moment the weakest of the Neutral currencies but still close enough to the other neutral currencies to remain neutral.



_____________________________________

Classification review

This week we take a look at the weak currencies. The EUR made a top in March but is back again in the range of the weak currencies. The GBP is now in the higher range and it remains to be seen if it can hold these high levels. For now, both currencies remain weak and the Score difference between these weak currencies and the neutral currencies is still very high. This means that the GBP will have to stay strong for a long time before it can become a Neutral currency.Below you can see the Weekly Currency Score Chart with the 6 months' data as a reference.






_____________________________________

Currency Score Comparison

 "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 additionally uses the volatility and statistics for creating the best and worst performer in the list from number 1 to 28.

The information is published once a week and the rates change during the week. The mentioned scores also change and different opportunities may show up during the week. There are many ways to follow the rate changes during the week. This can be done e.g. by looking at the charts of course and checking e.g. the Ichimoku and/or MACD in the Daily and 4 Hours chart. There are also many tools, apps and websites where the development of rates of currencies is shown in different automated ways. This may be by pips or percentage difference or by comparing the values of indicators like the RSI, Moving Averages, MACD, Ichimoku etc. On my blog is a Heatmap available that can be of use also.




"Comparison table" and the "Currency Score Chart"

The additional value 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 clearer.

   1. First of all, only better-classified currencies in combination with weaker classified currencies are Approved when there is a Currency Score difference of at least 1 in the current week.
   2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
   3. It means that each currency should be as far apart from each other as possible in the range from 1 to 8. The classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact at the half of the range it seems a safe approach for trading 2 currencies which are similarly classified.
   4. Even though currencies may be in the same classification 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 beginning of this article.



______________________________________

Putting the pieces together

Based on the last "13 Weeks currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the:
JPY and AUD.
These are Strong or Neutral currencies from a longer term perspective when looking at the last "13 Weeks currency classification".

For going short the same analysis can be done and the following currencies seem to fit best:
EUR, CHF and CAD.
These are Weak or Neutral currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. A good example now is/are e.g. the:
GBP and USD.



______________________________________

Besides this article, I also use the Forex "Ranking, Rating and Score" which is also available once a week on my blog. 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.

Forex Ranking, Rating and Score for Week 16 / 2017

 The Top 10 of the Ranking and Rating list for the coming week shows the following stronger currencies being well represented for going long: the JPY(5X) followed by the AUD(2X). The weaker currencies are the EUR(4X) followed by the CHF(3X).
A nice combination for coming week may be e.g:
  • EUR/JPY with the AUD/CHF
  • CHF/JPY with the EUR/AUD


______________________________________

Ranking and Rating list

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 for 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 13 weeks Currency Classification can be used in support.
This was updated on 9 April 2017 and is provided here for reference purposes:
Strong: USD, JPY, AUD. The preferred range is from 6 to 8.
Neutral: CHF, NZD, CAD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When comparing the 13 weeks 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 Chart

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 13 weeks 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.


______________________________________

Besides this article, I also use the Forex "Strength and Comparison" which is also available once a week on my blog. In that article, 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.

Sunday, April 9, 2017

Forex Strength and Comparison for Week 15 / 2017

In the Currency Strength table, the USD was the strongest currency while the EUR was the weakest. There were some significant changes last week with the USD and the CHF gaining 3 points, The AUD lost 5 points. The other currencies remained around the same level with a maximum difference of just 2 points.

______________________________________

 13 Weeks Currency Score Strength

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the "13 weeks 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 the last 13 weeks is considered. See each row for more information.
   2. Next, the 13 weeks average is considered, see the last row called "Avg. 13 wks."
   3. The number of weeks that a currency was stronger than another currency can also be considered.
   4. The Technical Analysis (TA) Charts for each Time Frame could also be consulted.



For analyzing the best pairs to trade looking from a longer-term perspective the last 13 weeks Currency Classification can be used in support.
This was updated on 9 April 2017 and is provided here for reference purposes:
Strong: USD, JPY, AUD. The preferred range is from 6 to 8.
Neutral: CHF, NZD, CAD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When looking at the Average 13 wks. Score the AUD remains the strongest of all while the GBP remains the weakest. The currencies are grouped together around a level which makes clear to what classification they fit best.
The JPY gained a lot of strength lately and the Average 13 wks. Score is close to the USD while the JPY had 8 times a higher score during the last 13 weeks. For that reason the JPY is now also a strong currency.



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Classification review

This week we take a look at the strong currencies. The JPY is now classified as a strong currency and as can be seen it looks similar to the USD lately. The AUD made a dive last week but it still remains a very strong currency.Below you can see the Weekly Currency Score Chart with the 6 months' data as a reference.



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Currency Score Comparison

 "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 additionally uses the volatility and statistics for creating the best and worst performer in the list from number 1 to 28.

The information is published once a week and the rates change during the week. The mentioned scores also change and different opportunities may show up during the week. There are many ways to follow the rate changes during the week. This can be done e.g. by looking at the charts of course and checking e.g. the Ichimoku and/or MACD in the Daily and 4 Hours chart. There are also many tools, apps and websites where the development of rates of currencies is shown in different automated ways. This may be by pips or percentage difference or by comparing the values of indicators like the RSI, Moving Averages, MACD, Ichimoku etc. On my blog is a Heatmap available that can be of use also.






"Comparison table" and the "Currency Score Chart"

The additional value 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 clearer.

   1. First of all, only better-classified currencies in combination with weaker classified currencies are Approved when there is a Currency Score difference of at least 1 in the current week.
   2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
   3. It means that each currency should be as far apart from each other as possible in the range from 1 to 8. The classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact at the half of the range it seems a safe approach for trading 2 currencies which are similarly classified.
   4. Even though currencies may be in the same classification 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 beginning of this article.



______________________________________

Putting the pieces together

Based on the last "13 Weeks currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the:
USD, JPY and CAD.
These are Strong or Neutral currencies from a longer term perspective when looking at the last "13 Weeks currency classification".

For going short the same analysis can be done and the following currencies seem to fit best:
EUR and NZD.
These are Weak or Neutral currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. A good example now is/are e.g. the:
GBP and AUD.



______________________________________

Besides this article, I also use the Forex "Ranking, Rating and Score" which is also available once a week on my blog. 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.

Forex Ranking, Rating and Score for Week 15 / 2017

 The Top 10 of the Ranking and Rating list for the coming week shows the following stronger currencies being well represented for going long: the USD(4X) followed by the JPY(3X). The weaker currencies are the EUR(4X) followed by the AUD(2X) and the NZD(2X).
A nice combination for coming week may be e.g:
  • EUR/JPY with the NZD/USD
  • AUD/USD with the NZD/JPY
  • EUR/USD with the NZD/JPY


______________________________________

Ranking and Rating list

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 for 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 13 weeks Currency Classification can be used in support.
This was updated on 9 April 2017 and is provided here for reference purposes:
Strong: USD, JPY, AUD. The preferred range is from 6 to 8.
Neutral: CHF, NZD, CAD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When comparing the 13 weeks 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 Chart

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 13 weeks 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.


______________________________________

Besides this article, I also use the Forex "Strength and Comparison" which is also available once a week on my blog. In that article 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.

Monday, April 3, 2017

Forex Strength And Comparison for April 2017

In the Currency Strength table the AUD was again the strongest currency while the EUR was again the weakest. There were some significant changes last month with the GBP gaining 3 points and the JPY 2 points, the NZD lost 5 points. The other currencies remained at the same level.



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12 Months Currency Score Strength

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.



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 29 January 2017 and is provided here for reference purposes: 
Strong: USD, JPY, NZD. The preferred range is from 6 to 8.
Neutral: AUD, CAD, CHF. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When looking at the Average 12 M. Score the NZD is no more the strongest because of the low score last month. The USD is now the strongest of all while the GBP remains the weakest. The currencies are grouped together around a level which makes clear to what classification they fit best.
For some currencies this may not be very clear, a good example at the moment is the AUD being a Neutral currency but having an Average 12 M. score of 4,9167 being between the Strong and Neutral currencies. This currency is gaining a lot of strength in the last 3 months and is clearly the strongest of the Neutral currencies, which are the CHF, CAD and AUD.


_____________________________________


Classification review

The EUR and GBP are for a long time very weak currencies. In the last months it seems as if the GBP is trying to get out of it having had a Score of 1 the last time in October last year. 
Here below you can see the Monthly Currency Score Chart with 24 months data as a reference.








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Currency Score Comparison


"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 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 3 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 additionally uses the volatility and statistics for creating the best and worst performer in the list from number 1 to 28.

The text  "Approved" mentioned in the `Currency score comparison table` has been taken out. The reason is that the information is published once a month and the rates change during the month. The mentioned scores also change and different opportunities may show up during the month. It seems then better to provide only the currency Score difference. Depending on the development of the rates during the month a Score difference of e.g. 3 may become more interesting than a Score difference of e.g. 5.

There are many ways to follow the rate changes during the month. This can be done e.g. by looking at the charts of course and checking e.g. the Ichimoku and/or MACD in the Weekly and Daily chart. There are also many tools, apps and websites where the development of rates of currencies is shown in different automated ways. This may be by pips or percentage difference or by comparing the values of indicators like the RSI, Moving Averages, MACD, Ichimoku etc. On my blog is a Heatmap available that can be of use also.






"Comparison table" and the "Currency Score Chart"
The additional value 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 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" when there is a Currency Score difference of at least 1 in the current month.
  2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
  3. It means that each currency should be as far apart from each other as possible in the range from 1 to 8. 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.
  4. Even though currencies may be in the same classification 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 beginning 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:
AUD, JPY and USD
.
These are Strong or Neutral 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:
EUR, CHF and CAD.
These are Weak or Neutral currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. A good example at the moment is e.g. the:
AUD, GBP and NZD.



______________________________________

Besides this article, I also use the Forex "Ranking, Rating and Score" which is also available once a month on my blog. 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.

Forex Ranking, Rating And Score for April 2017

The Top 10 of the Ranking and Rating list for the coming month shows the following stronger currencies being well represented for going long: AUD(4X) with the JPY(4X) followed by the USD(2X). The weaker currencies are the EUR(3X) with the NZD(3X) followed by the CHF(2X).
A nice combination for the coming month may be e.g:
  • EUR/AUD with the CHF/JPY
  • EUR/JPY with the NZD/USD
  • EUR/USD with the AUD/NZD



______________________________________

Ranking and Rating list

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 around the change of the month. 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 29 January 2017 and is provided here for reference purposes: 
Strong: USD, JPY, NZD. The preferred range is from 6 to 8.
Neutral: AUD, CAD, CHF. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.

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 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 traded in the Daily chart or in a lower Time Frame. Nevertheless they may offer good chances for the short term trader.




______________________________________

Currency Score Chart

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 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.




______________________________________

Besides this article I also use the Forex "Strength and Comparison" which is also available once a month on my blog. In that article 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.

Sunday, April 2, 2017

Forex Strength and Comparison for Week 14 / 2017

In the Currency Strength table, the JPY was again the strongest currency while the EUR was the weakest. There were some significant changes last week with the GBP and the CAD gaining 3 points. The CHF lost 5 points and the EUR 4. The other currencies remained around the same level with a maximum difference of just 1 point..



______________________________________

 13 Weeks Currency Score Strength

The 13 Weeks Currency Strength and the 13 Weeks Average are provided here below. This data and the "13 weeks 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 the last 13 weeks is considered. See each row for more information.
   2. Next, the 13 weeks average is considered, see the last row called "Avg. 13 wks."
   3. The number of weeks that a currency was stronger than another currency can also be considered.
   4. The Technical Analysis (TA) Charts for each Time Frame could also be consulted.



For analyzing the best pairs to trade looking from a longer-term perspective the last 13 weeks Currency Classification can be used in support.
This was updated on 26 March 2017 and is provided here for reference purposes:
Strong: USD, AUD. The preferred range is from 7 to 8.
Neutral: JPY, CHF, NZD, CAD. The preferred range is from 3 to 6.
Weak: EUR, GBP. The preferred range is from 1 to 2.

When looking at the Average 13 wks. Score the AUD remains the strongest of all while the GBP remains the weakest. The currencies are grouped together around a level which makes clear to what classification they fit best.
The JPY is gaining a lot of strength lately and is having scores within the range of the strong currencies during the last 3 weeks. As can be seen the Average 13 wks. Score of the JPY is very close to the USD which is a strong currency.



_____________________________________

Classification review

The AUD is having a lot of strength lately while the USD is showing some signs of weakness. During the last 3 weeks it did not have scores within the range of the strong currencies.  The JPY is gaining a lot of strength lately. During the last 7 weeks it had 5 times a score of 7 or higher, being within the range of the strong currencies. It had a temporary dip to a score of 4 but recovered fast and strong. As can be seen in the chart here below, the JPY had clearly a structural path to the bottom showing lower highs and lower lows. The bottom was reached in December last year. After that it started a structural path to the top showing higher lows and higher highs.
Below you can see the Weekly Currency Score Chart with the 6 months' data as a reference.



_____________________________________

Currency Score Comparison

 "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 additionally uses the volatility and statistics for creating the best and worst performer in the list from number 1 to 28.


The text  "Approved" mentioned in the `Currency score comparison table` has been taken out. The reason is that the information is published once a week and the rates change during the week. The mentioned scores also change and different opportunities may show up during the week. It seems then better to provide only the currency Score difference. Depending on the development of the rates during the week a Score difference of e.g. 3 may become more interesting than a Score difference of e.g. 5.

There are many ways to follow the rate changes during the week. This can be done e.g. by looking at the charts of course and checking e.g. the Ichimoku and/or MACD in the Daily and 4 Hours chart. There are also many tools, apps and websites where the development of rates of currencies is shown in different automated ways. This may be by pips or percentage difference or by comparing the values of indicators like the RSI, Moving Averages, MACD, Ichimoku etc. On my blog is a Heatmap available that can be of use also.




"Comparison table" and the "Currency Score Chart"

The additional value 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 clearer.

   1. First of all, only better-classified currencies in combination with weaker classified currencies are Approved when there is a Currency Score difference of at least 1 in the current week.
   2. The only exception is when 2 currencies are similarly classified but the Currency Score difference is equal to or more than 4.
   3. It means that each currency should be as far apart from each other as possible in the range from 1 to 8. The classification of the currencies in question may change in the longer term. By using the difference of 4 which is exact at the half of the range it seems a safe approach for trading 2 currencies which are similarly classified.
   4. Even though currencies may be in the same classification 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 beginning of this article.



______________________________________

Putting the pieces together

Based on the last "13 Weeks currency classification" and the "Currency Comparison Table" the most interesting currencies for going long seem to be the:
JPY and AUD.
These are Strong or Neutral currencies from a longer term perspective when looking at the last "13 Weeks currency classification".

For going short the same analysis can be done and the following currencies seem to fit best:
EUR, CHF and NZD.
These are Weak or Neutral currencies from a longer term perspective.

Currencies with a high deviation seem less interesting to trade because they are less predictable. A good example now is/are e.g. the:
JPY, CAD, EUR and USD.



______________________________________

Besides this article, I also use the Forex "Ranking, Rating and Score" which is also available once a week on my blog. 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", "Introduction to the FxTaTrader Forex Models" and "Statistics and Probabilities" 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 a recommendation to purchase any financial instruments. The choice and risk are always yours. Thank you.