Forex Ranking, Rating And Score: Week 18
Forex Technical Analyst Trader | May 01, 2016 02:29AM 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: JPY(5X) followed by the CAD(2X) with the CHF(2X). The weaker currencies are the GBP(4X) followed by the AUD(3X).
A nice combination for coming week may be e.g:
- GBP/JPY with the AUD/CHF
- AUD/JPY with the GBP/CHF
- GBP/CAD with the AUD/JPY
- GBP/CAD with the AUD/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. Generally speaking, 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. In any case, it seems always better to spread risk and this can be done in many different ways.
Ranking and Rating list for Week 18 / May 1, 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 rating list will be prepared in 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 on April 24, 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 period 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.
Get The News You Want
Currency Score for Week 18 / May 1, 2016
The currency score analysis is one of the parameters used for the ranking and rating list, which is published also 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 EUR and the AUD. 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. Good luck in the coming week.
Disclaimer: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.