Forex strengthmeters - the basics

[scoop]

Hi N, Is PerAvr MA ? and what is Delta ?

 

[keen246]

How to change the MA on the Indi?

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

Hi NVP,

I'm following your teachings with utmost interest as I started to read about this concept using the CCFp indicator on a FF thread but there are many missing details there.
I've read this whole thread today (luckily is just starting...the thread I previously mentioned is from 2008!) and the only indicator you've posted is "FXCORRELATOR_BASIC_FREE_VERSION_2013" which differs from the one you show on your examples. On such indi I don't see clearly how to change the MA to 50 or 500 as you request to follow your teachings. Under properties>Inputs tab I only see the variable "PerAvr" which seems to be something different to MA. How can I change the MA to the Indi provided so far?

 

[James Austin]

nice!

........sounds similar to trading highly correlated pairs that have temporarily decoupled, you're interested in the reversion back to the mean not "predicting" direction of an individual pair

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

all my strengthmeter systems are based on Relativity between currencies so I dont care what individual paircharts show.........
N

 

[James Austin]

Hi NVP,

re USD pairs indi

i've set up the EUR chart as per your posts, but when i scroll the daily EUR chart left, the oscillator 500MA is lost as shown.

also, if I switch to 240M, the 50MA (bottom indi on chart shown) does not show at all

any suggestions?

 

[NVP]

Hi N, Is PerAvr MA ? yes


and what is Delta ?

dont worry about it at the moment ......leave as 1

N

 

[NVP]

Hi NVP,

I'm following your teachings with utmost interest as I started to read about this concept using the CCFp indicator on a FF thread but there are many missing details there.
I've read this whole thread today (luckily is just starting...the thread I previously mentioned is from 2008!) and the only indicator you've posted is "FXCORRELATOR_BASIC_FREE_VERSION_2013" which differs from the one you show on your examples. On such indi I don't see clearly how to change the MA to 50 or 500 as you request to follow your teachings. Under properties>Inputs tab I only see the variable "PerAvr" which seems to be something different to MA. How can I change the MA to the Indi provided so far?

CCfp is the original cluster trading principles and indicators available at the metatrader home website.......its one of the grandfathers of all current strength meter systems

google it on forums and ive mentioned it befroe on my bigger thread

its good .........but a little flawed in the formulas that I subsequently corrected during the building of my FXCorrelator in the early 2000's (dont tell them )

N

 

[NVP]

Hi NVP,

is "FXCORRELATOR_BASIC_FREE_VERSION_2013" which differs from the one you show on your examples. On such indi I don't see clearly how to change the MA to 50 or 500 as you request to follow your teachings. Under properties>Inputs tab I only see the variable "PerAvr" which seems to be something different to MA. How can I change the MA to the Indi provided so far?

just use the indicators in the latest links below...tey are all pretty much the same

and I think the PDF is pretty good re how to set the settings ......?

N

 

[NVP]

nice!

........sounds similar to trading highly correlated pairs that have temporarily decoupled, you're interested in the reversion back to the mean not "predicting" direction of an individual pair

I think I am probably more into trending (and divergence from Average) than reversion to mean .........:smart:

N

 

[hybrid]

hi NVP,

really appreciate you doing this thread, and i'm finding it super interesting.

sorry to n00b up the thread a little, but i added the MQ4 file to MT4, and it appear below the E/U chart as empty, even if i add values to the different settings. Where does the helping pdf live?

 

[James Austin]

been playing with this, very interesting NVP

given you use the meter to define entry/exit and given the meter is not represented in chart prices,
how do you translate the meter into prices when setting limit orders?

thanks

 

[NVP]

hi NVP,

really appreciate you doing this thread, and i'm finding it super interesting.

sorry to n00b up the thread a little, but i added the MQ4 file to MT4, and it appear below the E/U chart as empty, even if i add values to the different settings. Where does the helping pdf live?

hey there

sorry I thought this was in the PDF stuff........if its not this that needs adjusting then I am not sure why it is blank

N

http://www.trade2win.com/boards/forex/179468-forex-strengthmeters-basics-2.html#post2196352

 

[NVP]

been playing with this, very interesting NVP

given you use the meter to define entry/exit and given the meter is not represented in chart prices,
how do you translate the meter into prices when setting limit orders?

thanks

Hey James

as mentioned before ..because all my signals come from the indicators I use I cannot pre-select or pre-guess Entry or Exit price levels for individual pairs ..it is when the system tells me based on the G8 dynamics

for Entries I simply follow the ole manual process as a market order based on the pair chosen for me

for Exits I naturally have a stop loss placed and then move it based on either manual processes (for S/Term trading) or just automated trailing stops ...or indeed indicator driven exits and S/L adjustments to the trailing stop

the Exit side and trailing stop management is a book in itself.and heres my thoughts and others on that subject

http://www.trade2win.com/boards/forex/117416-best-exit-strategies-forex-market.html

I am focusing people attentions here on Entries currently .....but your questions are indeed valid

N

 

[scoop]

Hi N, Had some fun with your 500ma 50ma breach system today on EU as you explained. Used H1 and M15, buying the dips to support direct from the 15m indie around the London open. Was OTS for 23 (closed from PA resistance duh) and long again off support on H1 indie, was out fast for 17 with trailing stop. http://screencast.com/t/VwXPqnryRKb , Missed the ride down but hey, may have seen it on lower tf,, Which tf's do you use for the 50050 breach system ? thx N .........btw sorry my eur is green not blue..

 

[hybrid]

sorry I thought this was in the PDF stuff........if its not this that needs adjusting then I am not sure why it is blank
N

hi N, i just went thro this whole thread again and can't see a link to a pdf anywhere - could you kindly give a url. P.s i have the indicator 'working now in a different brokers MT4 platform.....but the settings i don't understand...yet.

edit: i think i found it (after rummaging thro some haystacks). http://www.forexmt4.com/mt_yahoo/Free FXcorrelator intro System May 2012.pdf

 

[4xxxx]

Using FXCorrelator in baskets.

Hi NVP,
Many many thanks putting so much time and effort into teaching us newbies the uses and nuances of correlations. Very much appreciated. :clap:
You would have gone through the stage of "basketing currencies" a few years ago when it was a "hot" topic. Have you every found a way of applying FXCorrelator to basket currencies trading then/now ; mind giving some details of your thoughts.
Thanks again.
cheers

4xxxx

 

[NVP]

Hi N, Had some fun with your 500ma 50ma breach system today on EU as you explained. Used H1 and M15, buying the dips to support direct from the 15m indie around the London open. Was OTS for 23 (closed from PA resistance duh) and long again off support on H1 indie, was out fast for 17 with trailing stop. http://screencast.com/t/VwXPqnryRKb , Missed the ride down but hey, may have seen it on lower tf,, Which tf's do you use for the 50050 breach system ? thx N .........btw sorry my eur is green not blue..

hey scoop use it on any TF if it works fo you

Remember - this is just an example system to show everyone what a strengthmeter indicator looks like by comparing the FXCorrelator to a pairchart on the same settings .....we havnt even started yet talking about what Strengthmeters really do

i'm getting everyone used to the nuts and bolts of MA settings

N

 

[NVP]

Hi NVP,
Many many thanks putting so much time and effort into teaching us newbies the uses and nuances of correlations. Very much appreciated. :clap:
You would have gone through the stage of "basketing currencies" a few years ago when it was a "hot" topic. Have you every found a way of applying FXCorrelator to basket currencies trading then/now ; mind giving some details of your thoughts.
Thanks again.
cheers

4xxxx

Hey 4 :smart:

I have bookloads of strategies on trading baskets ....and in many ways I really need to trade baskets to maximise returns instead of selecting my best bet as I do here most of the time

look back at my calls this week and the ones on the Week 2 game with the moderators ......I called 2 trades on the dailies (G/U sell , U/Cad buy)but I mention the possibility of using Yen as well re buys and most certainly the AUD as a Buy that was a great trade as it held.....

thats actually about 7-8 trades there I could have entered ..and made money overall


I like the basket trading stuff on FF with all the gang there ....dreamliner , Ferrux FF etc etc

I reached out a while back to them with some ideas but they wernt interested ..shame as their approaches do have limitations in my humble opinion :whistling

such is life .....the FF crew can be a little cold to outsiders who dont play by their strict rules


N

 

[NVP]

the most simple Basket strategy is to buy all the currencies that are diverging north and sell all the currncies that are diverging south on a preferred MA setting

you will end up with a lot of trades but thats life .........you cannot predict what will deliver and what wont .....

N

 

[NVP]

ok all

i'm on vacation for a couple of weeks

I will be online for an hour a day from monday so will try to pop in

Cheers
N

 

[eyasu]

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

Dear Neil,
You are showing us an eye opening basic staff here. You see, the most important thing in currency trading is finding
1. emerging market
2. reversal
3. retracement: this is the tricky part most of the time what is reversal on a lower TF is found to become retracement on the higher TF

Most indicators are more or less geared into showing oversold and overbought, but that does not really mean there will be emerging, reversal or retracement market. It means nothing except to wait and see price action and even price action is misleading in itsef. But this two MA criteria seems showing three of them. Would you please educate us to differenciate and pin pointing these three. Thank you
Eyasu