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ok, as per various requests lets talk FOREX:
I would like to hear suggestions how to correctly and EASY analyze several
currencies against each other, i.e. which is strong (outperforming others), which
is weak (underperforming others) - maybe by using the chart scanner (or
whatever).
In FOREX you always trade a currency pair, e.g. not IMM-DM, but USD/DEM
and not IMM-JY, but USD/JPY - this is nothing different than the reciprocal of
the IMM currency with same risk/reward, but offers in FOREX the flexibility to
trade OTHER pairs, while you in IMM actually trade DM(/USD), as well as
GOLD(/USD) and S&P(/USD) - so could trade GBP/DEM or DEM/JPY just to
name 2 major "crosses" (as they are called in difference to so called
"MAJORS")
SO if the analyses tell that DEM is a weak currency one could short the DEM,
but needs BEST to short it against the STRONGEST currency not against a
similar weak currency.
The basis: I have daily currency fixings from the German BUNDESBANK for the
last 10 years - thats ONE price per day, for 17 currencies (those getting FIXed
daily) plus AUD (aussie) NZD (kiwi) - and through creating COMPOSITES in
TS you can create whatever pair out of the bunch, e.g. with USDDEM and
GBPDEM you can get GBPUSD etc. overall more than 200 pairs (more are
possible, but dont make sense)
Unfortunately due to the EURO-mumble lots of them have lost their
attractiveness, but some will be still there afterwards (whenever that will be),
e.g. GBP, JPY, AUD, NZD, CHF etc.
So what can be used as benchmark ? On stocks I hear sometimes FORD is
outperforming automobiles, or XYZ outperforming chemicals - how do they
calculate that - is it just ROC ? what period ? what else ?
rgds hans
retired FOREX broker dreaming of good old days
PS: If someone wants the data:
Its in MS format, TS can read it - just send me a mail PRIVATELY !
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