How You Determine The Strengh of Currency?

[TheRock]

Instead of using indicator, how you determine a strength of a certain currency.
For me, I'm using Euro to see overall strength.

Let say that GBP is weakening, i will confirm by seeing EUR/GBP whether it's bullish or bearish.

Same goes to JPY and CAD.

[scalperfx]

I always refer tu daily correlation at mataf to determine where the specific currency goes..

[Mr_smart]

I think dollar index is useful for that

[yohanip]

i don't know about any of the techncal analysis to see the strength of a currency pair, as for now i see the economic news release for the USD, when it's a "high Impact" news released, and it's going bad..then the market reactions is by far more than a good news..

don't know.. but from what i think, people tends to listen to the bad news, rather than the good news

[fanto]

i think if price break from previous day/week high and low, that can be new strength trend

[yohanip]

i think if price break from previous day/week high and low, that can be new strength trend

a break quite good above or bellow the resistance is a good signal, but do
you know any idea to filter the false signals given? based on the technical
analysis i mean.

[FXOjafar]

a break quite good above or bellow the resistance is a good signal, but do
you know any idea to filter the false signals given? based on the technical
analysis i mean.

That can be as simple as drawing a simple trendline. They are such a powerful tool, you shouldn't skip that lesson while you learn how to trade.

[fxtrader]

it is called corelation. the most pair i use is EURUSD and USDCHF. if EURUSD is up, usually USDCHF is down. so if EURUSD is up and i see USDCHF is not moving yet, i often open a sell position for USDCHF

[fxtrader]

i don't know about any of the techncal analysis to see the strength of a currency pair, as for now i see the economic news release for the USD, when it's a "high Impact" news released, and it's going bad..then the market reactions is by far more than a good news..

don't know.. but from what i think, people tends to listen to the bad news, rather than the good news

i think you better listen to both good and bad news, because good news for one country is a "bad news" for the other country. the important factor here is that there is surprise actual result from forecast/consensus

[yohanip]

i think you better listen to both good and bad news, because good news for one country is a "bad news" for the other country. the important factor here is that there is surprise actual result from forecast/consensus

i really never thought about it that way.. hehe it's really nice to talk and discuss about something we should do, to become successfull on the market.. very nice indeed

but something is missin here, if there are good news for the US, am i allowed to assume that is a bad news for the other country?
the swiss, japan, german,etc..

how's that..

[yohanip]

That can be as simple as drawing a simple trendline. They are such a powerful tool, you shouldn't skip that lesson while you learn how to trade.

Snif..snif..
i'm really don't know how to do that simple drawing trendline and then determining the strength of a trend, i usually using two bollinger bands, one using a deviation of 2, and the other is using deviation of 3..

got them from www.investopedia.com

[FXOjafar]

Snif..snif..
i'm really don't know how to do that simple drawing trendline and then determining the strength of a trend, i usually using two bollinger bands, one using a deviation of 2, and the other is using deviation of 3..

got them from www.investopedia.com

If you don't know how to draw a trendline, you can get an auto trendline channel indicator from http://www.fxegypt.com/forum/showthread.php?t=1179

Even with that indicator you really should learn how to draw one yourself. Go and read the lesson at b a b ypips.com and then tune in to the daily webinar (from around 10am GMT) at http://advisor.fxstreet.com as the blog author, Tony Juste often draws new trendlines on his charts during the webinar and you can see how it is done, and why they are important.

[yohanip]

If you don't know how to draw a trendline, you can get an auto trendline channel indicator from http://www.fxegypt.com/forum/showthread.php?t=1179

Even with that indicator you really should learn how to draw one yourself. Go and read the lesson at b a b ypips.com and then tune in to the daily webinar (from around 10am GMT) at http://advisor.fxstreet.com as the blog author, Tony Juste often draws new trendlines on his charts during the webinar and you can see how it is done, and why they are important.

i'm going to check them out, hehe..
i'm usually trade bull at the peak, and trade bear at the bottom, that was the one that is colapsing my money..

if i could utilize the trend channel as good as possible allong with the fundamental news, than i could decide when and where i should put my positions on..

[fanto]

Here the pattern when sign strong trend or weak trend


I hope it can help

[yohanip]

I'll never knows that a simple line such as this could be a sign of a trend, really thank you, i've upgraded my experience by this froum