Wednesday, December 24, 2014

Major markets review for 24/12/2014

Major stock markets, gold, oil, USD since 1/1/2014...


Latest currency strength meter readings...

Monday, December 22, 2014

Wall-paper tool

Another example of the wallpaper tool for MarketScope 2.0. It supports several graphic formats (including png, bmp and jpeg). The tool can not do any resizing, so if necessary you might have to resize the graphic with an external editor (e.g. Paint, XnView or most graphics editing applications).

You can use it for your favourite car, dog, family pics, company logos, etc.


(See original post)

A gift for the holidays !

A little gift for Christmas !

This indicator / tool displays "wall-paper" graphic on the MarketScope chart.

Here is it, with some seasonal graphics, but you can use anything.


Simply enter the full file-name of your graphic, the size of the graphic and the desired position (e.g. top-left, middle-centre, etc.). You can also select a colour for transparent mode, and the overall transparency.

You can download this indicator / tool for free from here.

The sample graphics that I used here can also be downloaded from here. (I do not hold the copy-right for these graphics, they are just something I obtained from the internet for free. As far as I know it is freely distributable clip art.)

Notes:
  • The default path for finding the graphic files is normally the TradingStation install path, i.e. "C:\Program Files (x86)\Candleworks\FXTS2". But you can specify any path and file-name (remember to add the extension, e.g. png, bmp, jpeg, etc.). I think it is also case sensitive.
  • You need to enter the graphic's size (width and height) manually. You can get this from Windows, e.g. file properties or mouse-over the file and it should tell you. Resize the graphic if required.

Happy Holidays every one and all the best for 2015 !

Monday, December 15, 2014

Currency Comparison - Rouble and others

This"Multi-Compare" chart shows the USD/RUB, USD/CAD, EUR/USD, GBP/USD along with gold and oil. Today was a massive drop in the value of the Rouble, as oil continues to fall too.

Friday, December 12, 2014

RANsquawk Weekly Wrap 12th December 2014

RANsquawk Weekly Wrap 12th December 2014

Major markets, USD, gold, oil, since 1/1/2014

No surprises here - oil is the clear loser... 


The chart shows %change since 1/1/2014. Oil down 40%.

Currency Strength Meter : Release 16

I just made a small change to the Currency Strength Meter.

Release 16:
  • Added “EMA” display mode option

This is in addition to the SMA, RSI and MAC options for post-processing the raw currency strength values.

The updated indicator is available for purchase from the blog. Existing users can download from the usual place.

Friday, December 5, 2014

Currencies and major markets (pre-NFP)

Here's the currency strength (D1 chart):


Here are the major markets (stock indices, USD, gold, oil), %change today:


US Non Farm Payrolls in just over an hour. Japan stock market leading the way, DAX also up on good factory orders today. USD/JPY looking strong (strong dollar, weak yen).

Wednesday, December 3, 2014

Supply Demand indicator added to the "Mega Bundle"

I've added the Supply / Demand indicator to the "Mega Bundle". But, I'm keeping the price fixed at the current GBP 150 until at least the end of the year (31/12/2014). So, this one is great value - over 35% off compared to the individual prices.

Monday, December 1, 2014

2014 Year End And Beyond [Webinar]

Oil

Well, oil's up a bit today from its low, but look how low it has gone.

Today's chart... (% change)


This year's chart (% change)

Development Schedule

I've got a number of things on my development "To-Do" list.

Line Sync Tool
  • Add "clone / copy" command
  • Add arrows
  • Add rectangles

Supply/Demand Indicator
  • Some more tweaks
  • Add outputs for alerts

Composite Profile
  • Add outputs for alerts

Currency Strength Meter
  • Add a "matrix mode"

Zig-Zag Indicator
  • Add "daily start time" to reset the zig-zag

Divergence Indicator
  • This is a new one that is still in development, more work is required.

There's probably a few other little things if I think about it. Some of these have been on my list for months, it's just taking me a long time to get to them. I'm going to busy for the run-up to the holiday season, but hopefully I will have some time over the holidays to close off a few of these things. Thank you for being patient.

RANsquawk Week Ahead 1st December 2014

Friday, November 21, 2014

RANsquawk Weekly Wrap 21st November 2014

What is Currency Strength?

What is Currency Strength? What does the term actually mean? And how do you measure it?

There is no strict definition, it can mean different things to different people. Is it % change or momentum? Over what timeframe?

Here's a post from "Forex Live". They are simply using daily% change of each pair, and then adding the results to get a cumulative result.


Because they are adding the results together the bottom line number is a little bit misleading, for example, from the above result you would tend to think that AUD has increased nearly 9% today - clearly not the case. Actually, it has increased about 1%.

But, they're on the right lines. A better way, rather than adding, is to use an average. My Currency Strength Meter does more or less the same thing, but using a geometric mean (a type of average which is useful for averaging things of different units).

The other point to note in the Forex Live system, is that they are basing "strength" on the % daily change. It could just as easily be % weekly change, % monthly change or some other value. My Currency Strength Meter has a similar concept, i.e. you can set the starting point (or reference datum).

Here's a screenshot of the Currency Strength Meter using the % daily change. The ranking is similar to that shown in the Forex Live case. (Actually, only CAD is different, and that's because of data from Canada a few minutes ago which came after the Forex Live results).


But is % change really a good measure? What about a currency that increased a lot in the morning, but is now on its way down - is it strong?

Maybe momentum is a better measure. Here's the Currency Strength Meter using RSI and MACD modes.


Here you would say CAD looks the strongest (in terms of momentum at least, and EUR & CHF weakest). There is no right or wrong way, whatever tool you use, at the end of the day it's just a tool, and as with all tools it takes some knowledge to know how to use it for best effect.

China cuts rates

Currency Strength Meter after the surprise rate cute.

Tuesday, November 18, 2014

RANsquawk FOMC Minutes Preview 19th November 2014

Today's supply / demand zones (5min)

A study of several major currency pairs using Supply / Demand indicator...

EUR/USD:

GBP/USD:

USD/JPY:

AUD/USD:

Zig-Zag (Weis Wave) with 3rd party data (GOOG)

I received an interesting question by email today. Someone wanted to know if my Zig-Zag (Weis Wave) indicator could be used with other data feeds. My initial thought was no - but then I remembered there was at least one example of a "View Indicator" that loads data from Yahoo!Finance.

The indicator can be found on FXCodeBase, here.

It is a bit limited, and as far as I can tell this version of the indicator only supports historic data for Daily, Weekly and Monthly bars. However, in theory it should be possible to create "View Indicators" like this that can access other data feeds.

So, back to the original question: In the following screenshot I have applied Zig-Zag to a chart of GOOG stocks (data from Yahoo!Finance).

Monday, November 17, 2014

Today's supply demand zones (5min)

A study of several major currency pairs using Supply / Demand indicator...

GBP/USD:

USD/JPY:

EUR/USD:

AUD/USD:

Supply / Demand Indicator goes live

I've just made the first formal release of the Supply / Demand indicator. This indicator has been on "Beta" release for several months now - thanks to everyone who provided feedback and comments, and sorry it took so long to finalise the release.

I made a few changes compared to the "Beta" version:
  • Removed the debug
  • Fixed a couple of bugs with the zone detection
  • Added the ability to specify the size of the "left leg"
  • Tweaks to the scoring system
  • Modified the text provided in the "too tip"

The indicator can be downloaded from here. If you still have a temporary license key, this will continue to work until it expires. The indicator can be purchased from the products page.

Tuesday, November 11, 2014

Limit order not getting filled? Try this... - Week 165 - 4-Minute Drill ...

Major stock indices, USD, oil, gold comparison

This chart is comparison of the major stock indices, USD, oil, gold, etc. since 1/1/2014. Notice, the strong correlation between USD and SPX500. In this chart, the correlation matrix is for the last 20 periods (20 days in this case).


Friday, November 7, 2014

Currency Strength Chart 7/11/2014 (pre NFP)

US NFP data release in just over 1 hour. Here's how the currency strengths are looking.

Friday, October 31, 2014

Currency Strength Meter 31/10/2014

The Yen continues to tumble after the surprise BoJ announcement of increased stimulus. The upper panel is daily bars, and the lower panel is hourly bars. It is weak and "over-sold" on both these time-frames, but this is definitely not one of those times where you go long.


Nikkei up over 6% on the day!

Compare the markets!

So far this year, the markets have been ...


Multi-Instrument Compare comparing the main equity markets, gold, oil, USD, etc. The values are % change since 1/1/2014.

BOJ announcement: EASES FURTHER – Expands monetary base target

Big news out of Japan (here courtesy of Forex Live). The day after the US formally / publicly announced the end of QE - interesting.

Big move on Yen and Nikkei.


Wednesday, October 29, 2014

Supply/Demand Indicator


Well, I've not had time to release the version of this indicator with my latest changes, so I am rolling the temporary keys again. Hopefully, this is the last such roll, and I will eventually finish testing the new improvements ready for release.

If you don't already have the indicator, you can download the indicator here. Installation instructions are in the accompanying documentation.

The temporary key (valid until 2014/11/13):
Supply Demand key: E328BA89F3F1365E2462FA43


Tuesday, October 28, 2014

Supply/Demand and Divergence

Putting Supply/Demand and Divergence together could be a useful strategy. I've been experimenting with both Supply/Demand zones and Divergence indicators.

(Divergence is a technical analysis tool whereby the price makes a higher high (or lower low) but the oscillator makes a lower high (or higher low). Divergence can be bullish or bearish, regular or hidden).

Here's some recent supply/demand zones with divergences marked on the chart.

Monday, October 27, 2014

DAX scalping EA

Most of my trading has been manual, discretionary trading. However, recently I have been looking at some simple automated strategies (some people refer to these as Expert Advisor or EAs).

I've implemented a simple Bollinger Band scalper. It uses 2 Bollinger Band levels, set at 1 and 2 standard deviations in this example. A long is entered if price crosses under the 2nd level, and then crosses over the 1st level. A short is entered if price crosses over the 2nd level and then under the 1st level. The strategy allows for partial profit taking, move to break-even and trailing stops.

This strategy is only deployed when the market is in a sideways phase or approaching a top or bottom. It should not be deployed when the market is in break-out or strongly trending mode. Essentially it is a mean-reversion strategy.


Looking reasonable so far. My intention is to use this for those dull side-ways portions of the day.

Tuesday, October 21, 2014

ECB looking into buying corporate bonds!

Sudden move on the EUR and DAX, seems to be attributed to this...


Here's the Currency Strength Meter, you can see the sharp drop on EUR (and CHF).

Sunday, October 12, 2014

Divergence indicator

I don't normally use oscillators, but I was intrigued by a recent discussion about divergence - something which I haven't used much myself. I wrote a small indicator to test the topic. This is still in development, but the basic feature is working. The indicators finds the highs and lows in the price and the oscillator, and determines whether there is regular (or hidden) bullish or bearish divergence.

Here's an example on the EUR/USD.

Friday, October 10, 2014

Stocks tumble

Whatever way you put it - it's not pretty.

Current year...

Current month...

The Multi-Instrument Compare indicator allows up to 10 instruments to be easily compared. The indicator is available on this blog and also on FXCM Apps.

Line Sync for MarketScope 2.0



Line Sync is available from this blog, and also on FXCM Apps.

Wednesday, October 8, 2014

Currency Strength Meter during FOMC minutes release 8/10/2014

It's kind of fun to watch the Currency Strength Meter during a big news event like the FOMC minutes release. I recorded today's minutes and immediate aftermath.

I set it up on 1 min chart. In this video, the Currency Strength Meter is post-processed using MACD(1, 200) on the upper panel and RSI(14) on the lower panel. Both are considered to measures of momentum, and therefore strength. The audio on the video is from RANSQUAWK. I speeded up some of the more boring bits.

For best results view in YouTube at 720p HD.


The Currency Strength Meter is available from this blog or on FXCM Apps.

Thursday, September 25, 2014

Currency Strength Meter - now with Alerts!

I created a signal for my popular Currency Strength Meter. This is still in Beta testing stage, but it looks ok so far. The signal requires the Currency Strength Meter indicator in order to work, it will not work without it. You can configure up to 6 different simultaneous conditions, e.g. "crosses above X", "crosses below Y", etc. These conditions will be tested against all specified currency strengths (e.g. USD, GBP, EUR, JPY, AUD, etc.). It works in "Normal", "MACD", "SMA" and "RSI" modes.

Please see this short video on the alert, it shows how to set it up, and how it works, etc. (Best viewed in YouTube at 720p HD).


The signal is currently freely available, and can be found here.

The Currency Strength Meter itself can be purchased from my blog or at FXCM Apps.

Wednesday, September 24, 2014

Tuesday, September 23, 2014

New Version: Currency Strength Meter and Multi-Compare Indicator

I updated the Currency Strength Meter and the Multi-Compare Indicators with the a new "shading" option. When enabled this option will use a darker variant of the output's colour for decreasing values.

Currency Strength meter is now "Release 14". Multi-Compare is now "Release 9".

The updated versions and documentation are on the download site.

Currency Strength Meter - latest change

I was asked about colouring the lines differently for up/down. Well, I thought having another 8 colour choices would be awkward, so I just automatically generate darker versions of the base colours. I think it looks ok. This is an optional feature, and will be part of the next release.

Friday, September 19, 2014

RANsquawk Weekly Wrap 19th September 2014

Currency Strength Meter - 3 views

I just had an email asking if it was possible to show the Currency Strength Meter in "Normal", "RSI" and "SMA" modes simultaneously. Well, it's not possible to do "in one go", but you can certainly add 3 indicators to do this. For the "SMA" you need to add it the same location as the "Normal" one, otherwise it appears as a separate panel.

Gap-Fix and SessionLines video (FTSE100 on Scotland referendum result)

It's the day after the Scotland independence referendum, and there was a big move on the FTSE100. This is a great example to show the problem of gaps on FXCM's MarketScope platform. The "Gap-Fix" indicator fixes the problem though.

Thursday, September 18, 2014

Videos Uploaded

I made a few short videos about some of the indicators. They're on YouTube. This is the playlist. Most of them are also on the "Video" list which you can find on the menu bar at the top of the blog.

Supply / Demand (short video)

Hi, here's a short video of my latest creation: The Supply / Demand Indicator. For best viewing experience I recommend to view in YouTube on highest setting (720p).

Wednesday, September 17, 2014

Supply Demand tweaks

Playing around with a few tweaks. Here I an looking at extending the distal line according to the wick of the "left leg" bar. Some cases, this seems the right thing to do...


This screenshot below shows the same zone as above, and how extending it by those few pips was clearly the right thing to do. But later on we see that one zone was not identified at all because the larger base meant that the "base:right-leg ratio" was not big enough to qualify as a valid zone. Win some - lose some!

Tuesday, September 16, 2014

Currency Strength Meter

Supply Demand Indicator goes "Beta"

I've just completed the release for my Supply / Demand indicator. This is now at "Release 1 Beta".

I've been using the indicator for a couple of weeks now, and I think the bugs are ironed out. The indicator has a number of options to tweak the sensitivity for finding good supply/demand zones. I've also completed the documentation and installer, which is all part of the release package.

The documentation can be found here.

The Release 1 Beta version of the indicator can be downloaded here. This indicator is currently only for FXCM's MarketScope.

Contact me for a temporary license key if you want to give it a try.

Wednesday, September 10, 2014

DAX trade using supply/demand

Using just the supply/demand levels, no other indicators. S&P, FTSE and DAX all approached this supply level. Remembering one of Sam Seiden's quotes... "think who is on the other side of the trade.. who is buying after a rally into a supply zone?"

I'm pretty sure that this zone will not last long, already having been penetrated a number of times. However, I felt it was worth a scalp given the price action and time of day.

Tuesday, September 9, 2014