Episode 16: Buy strong currencies and sell weak currencies. The power relationships of the eight currencies are crystal clear: SL_CSX
ShenLong Lab (Shenron Lab) is Shenlong.
For those who are new, please allow me to introduce myself a little.
As a current trader who continues to generate monthly profits with my own indicators, I have developed over 1,000 indicators and automation tools to date while facing the markets.
The first item of ShenLong Lab's second release, "Market Compass"
"SL_CSX (Currency Strength IndeX)"
has been released.
This time, I will talk about why I created this item and tips for verifying currency strength in MT4/MT5.
When USD/JPY rises, is the strong one the dollar? Is the weak one the yen?When the USD/JPY candlestick is rising,
whether that means "the dollar is being bought" or "the yen is being sold" cannot be determined from a single USD/JPY chart.
I myself used to open and compare charts of several currency pairs before entering a trade.
I used to compare using multiple currency pair charts.
- Compare the gains and losses of each currency pair on the Market Watch
- Line up charts of dollar pairs (EUR/USD, GBP/USD, AUD/USD, etc.) and check if they move in the same direction
- Line up cross-yen pairs to confirm whether only the yen is moving
All of these require comparing several charts and numbers.
Even while comparing, 15-minute, 5-minute, and 1-minute charts are moving.
The strength of currencies should be viewed using the same yardstick.
That is why SL_CSX was created.
From here on, I will introduce how to use SL_CSX in a video.