Forex Ranking, Rating And Score: Week 17
Forex Technical Analyst Trader | Apr 24, 2016 06:44AM ET
Welcome to my "Ranking, Rating and Score" article for the coming week. The article "Strength and Comparison" has also been published.
When looking at the Top 10 in the Weekly Ranking and Rating list, we can see that for the coming week the following stronger currencies are well represented for going long: CAD(5X) followed by the AUD(3X) with the USD(2X). The weaker currencies are the EUR(3X) with the CHF(3X) followed by the JPY(2X).
A nice combination for coming week may be e.g:
- EUR/CAD with the AUD/JPY
- AUD/CHF with the EUR/USD
- EUR/AUD with the CAD/CHF
These are just a few examples and many other combinations are possible. The mentioned pair combinations can be traded at the same time according to the rules of the FxTaTrader strategy, because these are all different currencies. By not trading the same currency in the same direction more than once in the same time frame, you may have better chances with lower risk.
Ranking and Rating list for Week 17 / April 24, 2016
Analysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every week the forex ranking and rating list will be prepared over the weekend. All the relevant time frames will be analyzed and the ATR and pip value will be set.
For analyzing the best pairs to trade looking from a longer-term perspective, the last 3 months Currency Classification can be used in support.
This was updated today, April 24th 2016, and is provided here for reference purposes:
Strong: JPY, AUD, CHF. The preferred range is from 6 to 8.
Average: USD, CAD, NZD. The preferred range is from 3 to 5.
Weak: EUR, GBP. The preferred range is from 1 to 2.
The charts were provided in the article: "Forex Currency Score Classification for Wk17 ".
When comparing the 3 months Currency Classification with the pairs mentioned in the Ranking List above, some would then become less interesting. On the other hand, these pairs are at the top of the list partly also because of their volatility. It seems best to take postitions for a short term then, and take advantage of the high price movements.
With the FxTaTrader Strategy these pairs are not traded, because these would be trades in the 4-hour chart or in a lower time frame. Nevertheless, they may offer good chances for the short term trader.
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Currency Score for Week 17 / April 24, 2016
The Currency Score analysis is one of the parameters used for the Ranking and Rating List, which is also published in this article. The Currency Score is my analysis on the 8 major currencies based on the technical analysis charts using the MACD and Ichimoku indicator on 4 time frames: monthly, weekly, daily and 4-hour. The result of the technical analysis is the screenshot here below.
When comparing the 3 months Currency Classification with the recent Currency Score, as provided in the image above, we can determine the deviations. In the article "Forex Strength and Comparison" this is analyzed in more detail. Currencies with a high deviation seem less interesting to trade because they are less predictable. These currencies are at the moment e.g. the USD, CHF, EUR and the CAD. Unless these currencies offer a clear opportunity based on the longer term, they are avoided.
In the article "Forex Strength and Comparison" we will look in more detail at the interesting pairs from a longer-term perspective for trading in the daily and weekly chart. We will use the information from this article and analyze it further in more detail.
It is recommended to read the page Models in practice for a better understanding of the article. The Forex "Ranking and Rating List" and the "Score Chart" provide meaningful data for my FxTaTrader strategy. Besides this I also use the Forex "Strength and Comparison" which is also available once a week on my blog at FxTaTrader.com.
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