Forex strengthmeters - the basics

[NVP]

sorry all........I am not getting to all my e-mail messages ...jees i'm behind

Everyone - When I get to yuor E-mails they will read mainly like this (apologies again to the person below I had not responded to until this morning)

Hi X

Apologies for delay .....unfortunately I am not taking clients or mentoring at present due to many other commitments

I have now been asked by hundreds of people to return to training and I am looking into it .....watch the threads

and you are right ........every Strengthmeter Vendor product that myself and my team have ever looked at in the last 10 years is still very very poor regarding decent ideas and strategies .......and some of these sell for over £10,000 !

I have a new thread now here that will talk about basic things but you may be already beyond this and require advanced training....something I may well offer again next year if time allows

http://www.trade2win.com/boards/forex/179468-forex-strengthmeters-basics.html

all I can suggest is that you also think VERY VERY deeply about what all the things can mean on the 7p's model I have posted on my threads (attached) that is where the true profitable signals are hidden..........this is a quantum leap from the low level buy lines going up and sell lines going down messages that inferior Vendors are offering

N

.....and yes I can say inferior as it was a private e-mail .....

 

[NVP]

I like the concept of sopport and resistance since it is crucial to my trading but I use 365 and 150 ma's (on daily ) plus a couple of bar formations - why do you use a 500 ma ?

Hey N

because you get more granularity on the moves and reduced MA "Skew"...........the higher the MA the more close the indicator lines are matching the underlying movement of the instrument it is trying to mirror...........anything over 200 will probably suffice to be honest .........

N:smart:

 

[NVP]

Neil,
I find it interesting when I put the two currencies, EUR and USD at the same time at the bottom pane. It shows more clear the intensity of the momentum. It shows another view when they cross over too. What do you think? I am also trying MA with Fibonacci numbers, 8,13,34,55,89,144 and ...so on. But I want to stick with what you have started for you may have something in mind to address at the end. Thank you for all what you are doing.
Eyasu

Hey E

remember we are still on a simple EURUSD Chart to show the basic indicator at the moment showing people some basic patterns before I take it up a notch :smart:

post this over on the main Thread I have and also please place attachments in the post so I can see what you are doing

Regarding Fibonacci I must confess I am not a 100% fan ....numbrs are what they are and we can see anything we chose ....especially in this trading business :0

I use 20ma as the default because it is neither to fast or to slow and a general workhorse....... personally I would recommend going to a lower MA ......and amend yuor trading accordingly to fast signals and entry/Exits

5ma is about the fastest I go on my core system......probably ok up to 13ma if you want to play fast ball stratagies....

but lets take discussions now over to the main thread I run :smart:

thks
N
ista.

 

[eyasu]

Hey E

remember we are still on a simple EURUSD Chart to show the basic indicator at the moment showing people some basic patterns before I take it up a notch :smart:

post this over on the main Thread I have and also please place attachments in the post so I can see what you are doing

Regarding Fibonacci I must confess I am not a 100% fan ....numbrs are what they are and we can see anything we chose ....especially in this trading business :0

I use 20ma as the default because it is neither to fast or to slow and a general workhorse....... personally I would recommend going to a lower MA ......and amend yuor trading accordingly to fast signals and entry/Exits

5ma is about the fastest I go on my core system......probably ok up to 13ma if you want to play fast ball stratagies....

but lets take discussions now over to the main thread I run :smart:

thks
N
ista.

Neil,
This what I meant as indicated in the image, It is based on 500ma. The USD line show more direction that EUR line at the bottom pane. Since I am fond of Fibonacci, the send chart shows my exit target level, T1, T2, T3, T4 or what ever cross line of the two currency shows. Am I in the right direction with what you want to address or I am missing something?
By the way what is the internal configuration differences between
FXCORRELATOR_BASIC_FREE_VERSION_2013.ex4
FXCORRELATOR_line_LWMA_USDpairs.ex4
FXCORRELATOR_line_xmen.ex4
Thank you
Eyasu

 

[NVP]

My Website is back under my control

its linked to this thread till I get it up and running with new Free resources and links

FXCORRELATOR.COM welcome home !!

N

 

[NVP]

Neil,
This what I meant as indicated in the image, It is based on 500ma. The USD line show more direction that EUR line at the bottom pane. Since I am fond of Fibonacci, the send chart shows my exit target level, T1, T2, T3, T4 or what ever cross line of the two currency shows. Am I in the right direction with what you want to address or I am missing something?
By the way what is the internal configuration differences between
FXCORRELATOR_BASIC_FREE_VERSION_2013.ex4
FXCORRELATOR_line_LWMA_USDpairs.ex4
FXCORRELATOR_line_xmen.ex4
Thank you
Eyasu

thanks E

ok everyone......Eyasu is using my standard FXcorrelator indicator to support the E/U trades being shown on the upper charts in pictures...we are not using this yet ....but be patient

meanwhile it is very important to remember I am currently showing the E/U on the top pairchart and the same E/U line in the bottom Indicator style chart as well...........I am showing you simple techniques and strategies you can compare and understand on the top pairchart before we move onto the next levels......... once we raise the stakes and start showing different instruments in the bottom indicator the top pairchart will become redundant and I will remove it ....

(I do not use paircharts in my trading....I only need them to enter the trade , setting stoplosses and take profit levels) :smart:

N

 

[scoop]

Hi NVP,
finally got your Website back !! Congratulation !! looking forward to see what you will do with it. So I am one of the poor unfortunates you talk of who has shelled out for a strength meter only to discovered that the one you have is better because 1, it is free 2, it is adjustable and 3 you know what you are doing with it and are happy to share. . I am using 200/3 on 1m,5m,15m,1h looking to scalp the BO’s of squeeze’s seen on the 1m and 5m in line with sos/sow on the higher tf’s.. btw great call on GU , you have my full attention and thx for doing what you do..,, PS can you pls share the settings you use ?

 

[NVP]

Hi NVP,
finally got your Website back !! Congratulation !! looking forward to see what you will do with it. So I am one of the poor unfortunates you talk of who has shelled out for a strength meter only to discovered that the one you have is better because 1, it is free 2, it is adjustable and 3 you know what you are doing with it and are happy to share. . I am using 200/3 on 1m,5m,15m,1h looking to scalp the BO’s of squeeze’s seen on the 1m and 5m in line with sos/sow on the higher tf’s.. btw great call on GU , you have my full attention and thx for doing what you do..,, PS can you pls share the settings you use ?

Hi There scoop

why not play with the one I am going to show now ......if you are already using the Standard Strengthmeter you can simple adjust the strategy to use it instead of the E/U system I am using below

N

 

[NVP]

Hi NVP,
finally got your Website back !! Congratulation !! looking forward to see what you will do with it.

yep - FXCORRELATOR.COM currently feeds directly to this thread at the moment ......but give me time as I have to rebuild it ..........I was robbed blind by the pirates that were hosting it ...........luckily I didnt have any valuable software on it


N

 

[NVP]

ok so we were talking the E/U chart and a trainer style indicator below it mirroring the E/U...

so remember I said that by putting a Strengthmeter on a 500ma setting you can use price action stategies to trade it ?

if not read back in the thread
N

 

[NVP]

ok now we are going to add another USD indicator below the first one and put just the E/U on it.........this one will be set as a 20ma ...........OK?

N

 

[NVP]

so you now have

top - the normal E/U chart with a red 50 ma and a 500 ma yellow line showing
middle - the 500ma usd strengthmeter (just EURUSD showing)
Bottom - the 50ma usd strengthmeter (with just EURUSD showing)

the the bottom 2 indicators are simply showing the Ma lines on the top chart along the ZERO lines... (the red and yellows)

this is the secret to understanding strengthmeters .....if you can get it understood that you are simply "stretching" the ma setting along their 2 Zero lines (the red and yellows) and then playing trades above and below the line you are 80% there........:smart:

N

 

[NVP]

I am using the 2 simple USD strengthmeters on these ma's to mirror what I hope is obvious on the EURUSD chart at the top of the picture........if you dont see what I am doing keep looking and try to understand ..........I am happy to answer questions on it

when I have worked with people new to strengthmeters it can take a while for the penny to drop.............a bit like one of those dodgy pictures where it looks like 2 things and you see one (like a young lady) and the guy sitting next to you sees an old lady !

I need you all seeing the same picture
N

 

[NVP]

Now we are aligned (i hope) heres trading system 1 you can practice on the EURUSD model

1) only trade in the direction of the 50ma (bottom) indicator line baing above (buy) or being below(sell) the red Zero line

2) only trade the 500ma (middle) indicator when the indicator line breaches recent highs (buy) or when it breaches recent lows (Sell)....

3) dont worry about the Zero line on the middle (500ma) chart .....in fact I will take it off the chart below...........the only Zero line to worry about is the bottom 50ma indicator (see 1)

4) dont worry about exits yet ........I want you to get a feel for signals............

N

 

[NVP]

Remember because we are practicing on the simple EURUSD top chart and EURUSD strengthmeters you can see what you are doing ..................once we get going I will stop using the top chart to steer you...........

on my own systems I DONT USE PAIRCHARTS TO DECIDE ON ENTRIES .......

something most people here struggle with .........but you have to remember all my strengthmeter systems are based on Relativity between currencies so I dont care what individual paircharts show.............it means nothing to me if E/U is 1.24 or 1.74.........I do what my indicators tell me .....as I am following the inter-relationships of all the G8 currencies ....not just 1 pairchart/price ...........

again try to absorb this an practice practice practice

any timeframe is fine

N

 

[NVP]

heres the recent 1 hour setting on the E/U .........slim pickings actually

I am not going to teach anyone how to trade S/R levels or breaches as exampled here........up to you .....this is not an exact science and I encourage people to build their own strategies and ideas

I hope that more advanced traders can already see that one can apply pretty much any standard set of indicators and techniques to Strengthmeters ......all you have to do is understand the transition of those tools onto currency indexes (which we havnt done here yet)

so here we are with 1 E/U trading system for use .....

we combine simple MA signal with a little price action ....

this is on a E/U.............I know of at least 2 commercial systems that swop the E/U line for currency index lines (ie like my standard strengthmeter )..........and do exactly the same as above .....

so .......£10,000 please ?

N

 

[NVP]

ok more tomorrow if I get time .........practice practice practice and you can get that E/U meter earlier in the thread .........then remove the other currency lines

N

 

[NVP]

heres the same system on a full bloodied standard FXCorrelator........have it on me free .......

see why we are taking it slow here for beginners ?

I have highlighted the red GBP currency on the top chart 500ma and where possible signals were when it was combined with the 50ma below by looking for the red line as well

N

 

[NVP]

the standard FXcorrelator signals individual currencies in index form ......not pairs......sorry we are nowhere near this point yet everyone ...........

consider yourself still WhiteBelts for a while yet as we play with the EURUSD ...........:shuriken:

N

 

[scoop]

Remember because we are practicing on the simple EURUSD top chart and EURUSD strengthmeters you can see what you are doing ..................once we get going I will stop using the top chart to steer you...........

on my own systems I DONT USE PAIRCHARTS TO DECIDE ON ENTRIES .......

something most people here struggle with .........but you have to remember all my strengthmeter systems are based on Relativity between currencies so I dont care what individual paircharts show.............it means nothing to me if E/U is 1.24 or 1.74.........I do what my indicators tell me .....as I am following the inter-relationships of all the G8 currencies ....not just 1 pairchart/price ...........

again try to absorb this an practice practice practice

any timeframe is fine

N

OK, so I'm not alone, I also don't care about the price and with dark pool liquidity I don't care too much about volume neither. Anyhows thx for sharing your 50 500 breach system, nice & simple, me likes simple.