Currency Strength and Weakness for Tuesday 24th September 2013

[Andrew Mitchem]

Hi Traders,

I make my suggestions every day based on where I see the market heading over the next 24 hours. Use my analysis below to aid your trading and to help you keep on the right side of the market.

My suggestions are posted by 6pm EST each day.


Overall there is strength in AUD, JPY, CAD and GBP.

Overall there is weakness in the EUR, CHF and USD.


Trading Directions I am favouring for the next 24 hours

Buy Trades - AUD/USD, AUD/CHF, GBP/CHF

Sell Trades - EUR/JPY, EUR/GBP, EUR/AUD, EUR/NZD, EUR/CAD, CHF/JPY


VERY IMPORTANT- PLEASE READ: These are not specific trades. Do not blindly place trades in the directions given below. Use your own trading strategy and look at taking setups that occur in the same direction as my daily analysis. If you don't have your own trading strategy then email me here for help.


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Register now by clicking on my signature at the bottom of this post and select the "Attend my Free Training Webinar" link on the left side of the page.



To Your Trading Success.
Andrew

---

- Andrew Mitchem
The Forex Trading Coach
30 minute a day "full time" forex trading?
Learn how I do it>>

 

[AsstModerator]

The administrator moved your posts to the thread you were replying to. Please keep threads on topic.

 

[seth blackstone]

Mr. Mitchum -

I am trying to find out how a person (retail trader) such as myself would go about determining the strength and or weakness of a particular currency. I have done some research on the subject and looked at a number of different types of documents and software that purportedly tell me this information and as I am sure you can probably guess they all say different things and/or report different values for each currency. The only thing that I can count on is that the next method that I find will most likely directly contradict the method I studied just prior to the new one. I understand that price moves in the direction of least liquidity most of the time. However I can not discern a way for someone at my level, with the information that my terminal provides me (MT4 currently) how to get liquidity information, seems like you would have to know where all the banks have placed there orders at the instant they place them. I do not know how to get that info or even if it is available at all. I realize that a person can "kinda" deduce this from the price action, but that is no better then most of the lagging indicators out there and by the time that most of them report a favorable condition the move is either completely done or so close to it that ones risk reward ratio is shot to hell and negates the trade. I am having a bit of a problem understanding the concept of relative terms (strength/weakness) when applied to a single currency instrument, how can one say that GBP by itself is strong and EUR by itself is weak? Stronger then what? Weaker then what? The price of milk? It only makes sense (to me at least) if they are stronger or weaker then another currency instrument. Any way can you point me in a direction where I might learn more about how to determine strength and/or weakness of a single currency? What method do you use?

 

[andrewodhiambo]

Good Question

Mr. Mitchum -

I am trying to find out how a person (retail trader) such as myself would go about determining the strength and or weakness of a particular currency. I have done some research on the subject and looked at a number of different types of documents and software that purportedly tell me this information and as I am sure you can probably guess they all say different things and/or report different values for each currency. The only thing that I can count on is that the next method that I find will most likely directly contradict the method I studied just prior to the new one. I understand that price moves in the direction of least liquidity most of the time. However I can not discern a way for someone at my level, with the information that my terminal provides me (MT4 currently) how to get liquidity information, seems like you would have to know where all the banks have placed there orders at the instant they place them. I do not know how to get that info or even if it is available at all. I realize that a person can "kinda" deduce this from the price action, but that is no better then most of the lagging indicators out there and by the time that most of them report a favorable condition the move is either completely done or so close to it that ones risk reward ratio is shot to hell and negates the trade. I am having a bit of a problem understanding the concept of relative terms (strength/weakness) when applied to a single currency instrument, how can one say that GBP by itself is strong and EUR by itself is weak? Stronger then what? Weaker then what? The price of milk? It only makes sense (to me at least) if they are stronger or weaker then another currency instrument. Any way can you point me in a direction where I might learn more about how to determine strength and/or weakness of a single currency? What method do you use?

This is a very good question.
Andrew

To the Admin, is it possible for you to add a "me too" functionality against questions so that we dont have to as them repeatedly.

 

[Andrew Mitchem]

Mr. Mitchum -

I am trying to find out how a person (retail trader) such as myself would go about determining the strength and or weakness of a particular currency. I have done some research on the subject and looked at a number of different types of documents and software that purportedly tell me this information and as I am sure you can probably guess they all say different things and/or report different values for each currency. The only thing that I can count on is that the next method that I find will most likely directly contradict the method I studied just prior to the new one. I understand that price moves in the direction of least liquidity most of the time. However I can not discern a way for someone at my level, with the information that my terminal provides me (MT4 currently) how to get liquidity information, seems like you would have to know where all the banks have placed there orders at the instant they place them. I do not know how to get that info or even if it is available at all. I realize that a person can "kinda" deduce this from the price action, but that is no better then most of the lagging indicators out there and by the time that most of them report a favorable condition the move is either completely done or so close to it that ones risk reward ratio is shot to hell and negates the trade. I am having a bit of a problem understanding the concept of relative terms (strength/weakness) when applied to a single currency instrument, how can one say that GBP by itself is strong and EUR by itself is weak? Stronger then what? Weaker then what? The price of milk? It only makes sense (to me at least) if they are stronger or weaker then another currency instrument. Any way can you point me in a direction where I might learn more about how to determine strength and/or weakness of a single currency? What method do you use?

Hi Seth,
You don't need any special data feed or software to make this analysis. All that is required is a good understanding of how to read the charts and look at what they are telling you. Without wishing to upset certain readers here and start them on a rant about me selling my course - I teach all of this extensively as a part of my course and each time I hold a live trading room webinar for my clients I discuss this very subject in detail so it helps clients learn how to make these same predictions for themselves.

Therefore I'm sure you'll understand when I say I am not going to write the reasons for the analysis in any great detail on this site.

---

- Andrew Mitchem
The Forex Trading Coach
30 minute a day "full time" forex trading?
Learn how I do it>>

 

[seth blackstone]

Hi Seth,
You don't need any special data feed or software to make this analysis. All that is required is a good understanding of how to read the charts and look at what they are telling you. Without wishing to upset certain readers here and start them on a rant about me selling my course - I teach all of this extensively as a part of my course and each time I hold a live trading room webinar for my clients I discuss this very subject in detail so it helps clients learn how to make these same predictions for themselves.

Therefore I'm sure you'll understand when I say I am not going to write the reasons for the analysis in any great detail on this site.

---

- Andrew Mitchem
The Forex Trading Coach
30 minute a day "full time" forex trading?
Learn how I do it>>

Well congrats, you have joined the ranks of the highly suspicious "guru/coach/expert" class. You are about the 20th person to tell me that I have everything that I need, but yet everything is a secret, that is most unfortunate. What further confounds the issue, is that people like Henry Lu give his software away for free with a full explanation of the math yet more often then not your results and his results are shall we say divergent most of the time. This leads me to believe that the concept itself is highly subjective and has no real basis in actual science, again that is most unfortunate.

 

[Andrew Mitchem]

Well congrats, you have joined the ranks of the highly suspicious "guru/coach/expert" class. You are about the 20th person to tell me that I have everything that I need, but yet everything is a secret, that is most unfortunate. What further confounds the issue, is that people like Henry Lu give his software away for free with a full explanation of the math yet more often then not your results and his results are shall we say divergent most of the time. This leads me to believe that the concept itself is highly subjective and has no real basis in actual science, again that is most unfortunate.

Sorry I wasted my time trying to help you both here and on my webinar this week.

---

- Andrew Mitchem
The Forex Trading Coach
30 minute a day "full time" forex trading?
Learn how I do it>>

 

[hanover]

Seth,

No offense but I suspect that you’re hoping for too much from too little. If you were to trade daily strength/weakness signals (whether Andrew’s, Henry’s or Oanda’s) by entering at the following day’s open, and exiting at the close, you might find that you win something like only 55 times out of 100. In my experience, trading is about stacking independent (or semi-independent) edges: for example, on top of strength/weakness giving an overall, direction, if you also (1) choose (intraday) setups where price has room to move (i.e. not too many potential key support/resistance levels curtailing a trade that would have > 2:1 RR potential), AND (2) combine an entry where price is just bouncing strongly away from a strong support/resistance point, AND (3) manage risk suitably through the use of stoplosses and sensible position sizing, AND (4) be willing to let profitable trades run to their full potential, then — by combining a number of different concepts like these — you increase your probability of a profitable trade significantly.

Compared to other markets, forex is more complex and fast moving, making it arguably the most difficult market to trade profitably. One reason why Andrew’s and Henry’s strength readings may be different is due to their horizon. You can use Oanda’s FREE strength heatmap (Currency Strength | Currency Weakness | Forex Heatmap | OANDA fxTrade) to illustrate this. Setting the calendar back to yesterday will sometimes give a very different result to 2 days ago, 3 days ago, etc. That’s what I mean by forex being fast moving, and also why it’s important to interpret strength in a way that coincides with the your own exit ‘horizon’, i.e. whether you’re normally attempting to catch intraday, daily, weekly moves etc.

Re your comment “tell me that I have everything that I need, but yet everything is a secret”: Being skeptical about trading courses can certainly save you money; there are a lot of cowboys and scammers out there. But even courses being sold by reputable traders are always going to include tools (indicators, line studies, etc) and techniques that are available everywhere for free. What you’re paying for is not the tools, but for mentorship: to see first hand how a trader, with a proven track record, puts all the pieces of the puzzle together profitably for himself. How much money you decide to spend, if any at all, in the hope of accelerating your learning curve, is of course entirely up to you. The alternative is to spend a lot of time (maybe as long as a few years) figuring it all out for yourself.

Good luck,
David