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Forex Relative Strength Analysis Report For Week Starting 11/22/20 - Part 2

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@rollandthomas
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In the foreign exchange market 90% of forex trading involves the U.S. dollar. Thus, when assessing the relative strength of the most popular currencies in the world, it's always against the U.S. dollar, using the daily time frame chart. But what do you do when all the major currencies are strengthening against the U.S. dollar...you trade a cross pair. A cross currency pair is one that consists of a pair of currencies traded in forex that does not include the U.S. dollar.

Check out this video that explains how I would use this weekly relative strength analysis report.

https://www.aljazeera.com/economy/2020/11/16/dollar-may-drop-20-in-2021-on-covid-vaccines-citigroup-warns

MY TRADING METHODOLOGY IN A NUTSHELL BELOW

I’m a supply and demand trader. The premise of supply and demand trading is when the market makes a sharp move up or down the large institutions i.e banks/hedge funds are not able to get their entire trade placed into the market, leaving pending orders to buy or sell at the zone with the expectation the market will return to the zone and the rest of their trading position will be filled.

I use multiple time frame (MTF) analysis to improve my discretionary trading decisions. MTF analysis involves analyzing the same asset on multiple time frames. The rule of thumb when using MFT is you want your charts to scale down/up by 4X – 6X. In my case I tend to look at:

Monthly Charts (curve time frame) – which represents that jet fighter flying over the football stadium. Weekly Charts (trend time frame) – which represents the concession stands looking down at the field. Daily Charts (entry time frame) – which represents being on the football field with the player. 4 Hr Charts (entry time frame) – which represents the center hiking the ball to the quarterback.


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