Visualize currency strength and trends! Asked about how to use the divine indicator Currency Strength
Just by looking at one chart screen, you can understand the strength of eight currencies!8 currencies at a glance.
EbisuCurrencyStrengthis an indicator you are selling. Could you first explain this tool?
Envie“EURUSD”USDJPY”USDCHF”GBPUSD”AUDUSD”USDCAD”NZDUSD” のデータを用いて、内部でEUR”USD”JPY”CHF”GBP”AUD”CAD”NZD” のデータに分類します。そして、設定した期間の各通貨の強弱、流れを視覚的に見ることができるツールです。基本的な使い方としては、今どの通貨ペアを取引すると有利なのか？ということを判断するのですが、このインジケーターは“指定した通貨を固定して“相対的に他通貨がどのように変動しているのかを見ることもできます。例えばUSDを固定することでユーロドルやポンドドル等のドルストレートの動き、JPYを固定することでドル円を含めたクロス円の動きを、一つのチャートで一度に把握できます。これがこのインジケーターの売りの一つです。
Ebisu: What kind of usage do you have?
EnvieYou can see the set period, but for me I look at the 48 hours from yesterday to today and focus on the trend since yesterday to trade. My routine is to think up a trading scenario in the morning, then look at currency strength and candlestick patterns to enter.CurrencyStrengthis used to check, within that timeframe, which currencies are moving, at what angle, and which aren’t, narrowing down the target currencies.
Ebisu: Which time frame is good to use it?
EnvieIt supports all time frames, but the recommendation is1 minute to1 hour. I typically use55 minutes or higher to capture the general trend, and then use1 minute to avoid missing finer moves.
EbisuCurrencyStrengthcan it be used to find entry, take profit, and stop-loss points?
EnvieThis indicator is a convenient tool for seeking currency pairs with stronger potential profits by watching currency strength, but it is not highly recommended for entry, take profit, or stop-loss decisions. However, since you can view market trend changes, using it as one piece of your decision-making is fine.
Ebisu: So it’s a tool to know the trend. Earlier you mentioned that you publish trading scenarios daily on your blog and Twitter.
EnvieYes. Every morning, around 5 hours after the US market closes, I wake up around 6 o’clock to check the Dow’s close, previous high/low,NYsession close to 5 PM,5 to 6 PM, check the daily high/low, and the 1-hour, 4-hour, and daily chart to create the day’s scenario. I use Ichimoku calculations,ZigZag, Fibonacci, and channels to narrow down reachable price targets. Then I judge overall and post the morning scenario on Twitter.
Ebisu: So you narrow down targets with various technicals and prepare such scenarios. What kind of trades do you make with that?
EnvieIn routine, dollar-yen cross-price plays are common. Basically trading from morning until the start of NY, with many indicators during 21:00, and finishing by 22:00. As I mentioned, I think up trading scenarios, then enter by looking at currency strength and candlestick patterns.
Ebisu: What environment do you analyze charts in?
EnvieCharts use1 hour and15 minutes, andCurrencyStrengthuses1 minute and5 minutes. Generally, I look at the bigger trend on the higher timeframe, inspect candlestick shapes, relationships, price zones, where the calculations lie, and if there’s room for price movement, I enter.1 For the lower timeframe, I display multi-timeframe with4 hours and daily, and include Bollinger Bands and Ichimoku as technicals. Still, I emphasize candlestick shapes and chart patterns.
What moves the market, and how does it behave? A handy tool for deepening understanding
EbisuCurrencyStrengthadvice on how to use it.
EnvieI think it’s good to chase the currencies the user excels at. When starting to use it, at minimum you should look at 5-minute or higher time frames for about a week to see whether it’s rising or falling. In times of major events, like FOMC, ECB, or employment reports, observe how the market reacts. Which US-related currencies move, what moves together, and what is negatively correlated—these can all be understood from a single chart, enhancing your currency understanding.
Ebisu: What type of trading is suited for this tool?
EnvieBecause currency changes are visually visible on a shorter timescale, it’s suitable for short-term trades. It can be used for swing trading as well, but it’s more suited to trades spanning minutes to hours.
Ebisu: Now, shifting topics a bit, Envie who used to struggle a lot, now publishes daily trading scenarios, etc.
EnvieI’ve gone through many failures. At one point I almost lost almost all my savings. I then received investment advice, and after several near-bankrupt moments, I managed to stay alive.
Ebisu: Was there a turning point in improving your trading results?
EnvieBefore the Lehman crisis, I was doing well by luck, looking back. After Lehman, I almost wiped out my account, which led me to rethink my approach. I began keeping trading records, and I started recording Ichimoku, Fibonacci, etc. Over time, I could see the day’s reachable targets and where I might end up reaching them.
Ebisu: By keeping records, did your market-reading ability improve? Finally, a message to readers of this article.
Envie CurrencyStrengthon the product sales page, but this indicator does not guarantee profits simply by introducing it; it’s a tool to improve trading accuracy. By observing it, you can understand the nature of price movements in the forex market, so it can be used for study as well. Please use it in your trading and learning.
CurrencyStrength
https://www.gogojungle.co.jp/tools/indicators/16892
