[patryknextdoor]

This question is on my mind very much... 

Is it a good idea to create currency strength meter and then apply and fit a linear model (as indicator) around this single currency strength and use it in actual trading to predict price/path from that individual currency strength?

[Hassam]

Currency Strength can be measured in different ways. We can use RSI. We can use moving averages. We can use percentage returns. It does not give you a trade. It just hints that this currency pair may have the potential to move most. After that we need to find the entry. Here most traders make the mistake. The currency pair can keep on ranging for a considerable time. I want you to daily write here the 5 currency pairs that have the most potential to move more than 150 pips in the next few days. You should also tell me the potential entry price and the potential take target. This is part of your training. I will discuss your trade recommendations.

Following is the criteria:
There are many times price returns to test the Support/Resistance (S/R) on D1, H12, H8, H6 H4 and rebounds within 1-2 pips of the S/R. You will identify that pair.

[patryknextdoor]

https://www.tradingview.com/x/7AQr4PrQ/

here is the first trade idea gbp usd overall downtrend on higher time frames like weekly price but price might recover/change trend or retest the the previous high zone liquidity and continue the downtrend on daily

red zone is entry
grey zone is exit 1.33

can you answer my question regarding the linear model fit to currency strength ?

i want to achieve higher accuracy in my trading than 60-70 % thats why i am trying to learn from A-Z about algorithmic trading time series and statistics...the data processing steps and gaining some edge other than just looking at time bars. Looking only and time bars is more like finding needle in haystack because its insufficient information provided by broker so its not sufficient to make informed decision.

Thats why 90 % of retail traders fail because they CAN'T process the data in scientific manner and derive useful information from it to create alpha and you know it yourself.Obviously their risk management is also fail but its another topic.

Can you help me with achieving this from A to Z to get some edge? maybe thats why a course would be a good idea to take from 0 level to 100 level.
I would like to scalp and also focus on short term trading not longer than few hours to maximal 2 days positions holding, thats why. Swings only if the trend is confirmed.

[patryknextdoor]

https://www.tradingview.com/x/sHakTev5/


ANOTHER TRADIG IDEA NZD JPY was on big rally for long time.. there is a chance of correction in trend or total reversal

[Hassam]

I only look for trades that have stop loss less than 10 pips and take profit more than 100 pips like this EURUSD long trade. The stop loss is 5 pip and the take profit is 150 pips.

   

[patryknextdoor]

how do you know that this stop will not be hit?

[Hassam]

This is H8 candle. Price has been moving up and down during the last 8 hours and it didn't breakdown. Chances are this support will hold. Candles on H8, H12 and D1 are far more reliable as compared to on H1 and H2.

[patryknextdoor]

https://www.tradingview.com/x/FvoTyX5j/

CAD/CHF
I entered 74.100
stop loss 73.900
take profit 74.800

3 more hours to close 8 hour candle looks like this level is not going to break yet and price will move upwards to grab more liquidity and take out some sellers.

what do you think?

[patryknextdoor]

https://www.tradingview.com/x/qc7Uq4aQ/

GBP/USD

Entered 131.200
Stop loss 130.800
Take Profit Objective 133.800

[Hassam]

You have a stop loss of 40 pips and you have the trade open on weekend. We will know next week what happens whether stop loss gets hit or the take profit target.