Examining some figures

Posted on February 13th, 2008 in Trading Journal

I am trying a new idea of examining strength (or maybe sentiment) of some currencies. Taking the average of the trend scores (as of today) that I am using. No rocket science, just some statistics to be considered before making trade.

A scale from -100 (strong downtrend) to +100 (strong up trend)

YEN

GBP/JPY -55

USD/JPY -55

AUD/JPY +70

CAD/JPY -55

Average : -23.75. Yen scores +23.75 . This is rather flat.

AUSSIE

AUD/USD +60

AUD/JPY +70

AUD/CAD +90

GBP/AUD -75

Average: +73.75. Australian dollar is still in uptrend, though it is not as strong yet.

USD

USD/JPY -55

GBP/USD +55

EUR/USD +80

USD/CAD -70

Average: -65. It shows Dollar is in downtrend, but, it is a weak downtrend at the moment.

I am still going with Aussie dollar, at the moment. Though I would be happier if it gets a little bit stronger now. :

The tools that I use to generate trend score

From the desk of Tradergav.com

Tags: Forex Blogroll, FX, Trading Journal

Jay

And then use it as a contra-indicator!

Gav

LOL. Yeah, Jay, I was thinking about the same thing before...

But, let's see how it works out..

Caravaggio

Hi Trader Gav. These rates could also tweaked by weighting them according to the importance. For example, for the yen indicator, CAD/JPY would have a low weight because it is of lesser importance to the yen than say USD or AUD (a la the 'trade-weighted index').

: )

Gav

Hey Caravaggio, that's a good point. I will incorporate it into my next calculation.

Cheers!

blog comments powered by Disqus

Subscribe to our feed
Rules & Quotes
“Lose your opinion - not your money.”

Time tested trading rules
Now Reading

My Trading Library

My netvibes page
February 2008

M T W T F S S

« Jan Mar »

1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29
Categories
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License.
Disclaimer

tradergav.com and the author is NOT an investment,trading, legal, or tax advisor, and none of the information available through tradergav.com or social networking medias such as Facebook/Twitter by the author is intended to provide tax, legal, investment or trading advice or recommendations.

Although I do work as an affiliate for Elliott Wave International, I have followed Bob Prechter's work prior to that and am confident in the quality of his products and services.