CSS WITH HGI & SUPER CSS

[nanningbob]

Thank you for your questions and notes. The Yen also suffered from a news story. They cancelled/delayed a major tax increase. So now we have the rare chance of all three Asian currencies running strong this week. This does not happen very often.

As far as running CSS on lower timeframe I have used it very very little. So it is hard for me to answer question about that. If I get a chance I might play with some settings with the CSS so it can be used four hour time frame. But I don't know when I will get to that.

HGI has the strength meter built in it. So it seems to me following HGI on the chart should give you similar information. However it always pays to play with combinations to see what works.

[nanningbob]

However, if I move to 4H, of course GBP and USD was showing clear weakness. and strong JPY stength.

After the event you see it but before the event you would not know this. CSS no matter what timeframe would not predict an unknown news event.

1) For daily trading pair picking purpose, how do you interpret 0 STOP sign of daily CSS?

Under normal circumstances it's the stop sign. No strength. The CAD has been there for a while now.

2) When a pair shows clear change in direction, how do you analyze whether it is change in direction or just a minor pull back other than +-0.2 and 0 line? By the time clear trendline is available, it seems too late...

The 0.2 lines help define the difference between a strong trend vs a weak trend or range period.

Again and I repeat myself. You are trying to get an indi to define/predict a news result. It can't neither can any other indi. If N. Korea drops a nuke on Japan no indi is going to know that. If Japan suddenly decides to not raise a sales tax, the markets will react and then the indi will react. It may change the direction for a couple of days or a week but not the long term fundamental direction of a currency. Long term fundamentals only change 1-4 times a year. (See my notes in my 10.4 or 10.7 manuals on long term trends) Don't get into trying to analyze news events on an indi. They can't predict news events. doing an aftermath study will give you a false sense of what an indi/EA can do. The Brexit is a once in a lifetime event, treat it as such.

[nanningbob]

NZD is top dog and moving up. Look for those NZD buys. Its crossed USD and GBP so those should be good places to look. CAD is ticking up also along with the AUD following the NZD. Looks good to me.

[RisklessPips]

Did CSS know something you didn't this morning ?

GBP Spike.jpg

[nanningbob]

I don't look at CSS 1 hour chart. I look at the daily and then trade HGI in its predicted direction. I will post pics later but have scored very well on NZD strength. NZD/USD, eur/NZD, and eur/AUD have gone very well for me Monday.

[nanningbob]

OK I got my new laptop and by using Bluetooth I can connect to my wifi of my phone. Now I can trade signals from HGI and CSS. I will have to set up the push alerts so that will be on the agenda for today.

CSS is interesting and allows me to teach ranging pairs today. But before that NZD is trending up and GBP and USD are falling off the map. So contiue looking for nzd/usd buys and gbp/nzd sells. Go to any TF 5M 15M or 1H and choose the signals back into the trend.

OK when lines are running parallel whether sideways, angle up or angle down pairs will range. Price may angle slowly up or down but ranging is the call of the day. The currencies on the top will range stronger than the currencies on the bottom. Today we are lucky because 5 of the 8 pairs are ranging against each other with the ASIAN pairs leading the way. First the CSS chart.

[nanningbob]

NZD/JPY RANGE TRADES. Lots of small RAD arrows just trade up and down the chart. Notice the NZD buys get the bigger arrows on occasion. This is range trading going both ways. Just follow the arrows.

To range trade:
1.mark the top and bottom of the range. I did this with the black horizontal lines
2. measure the distance of the 2 black lines. That equals about 140 pips.
3. You will try to get 1/3 to 1/2 of the move so 40-70 pips is what you are looking for. When you get them close and look for the next signal.
4. The lower the TF the fewer pips you will look for.

This is a 4H chart.

[nanningbob]

If you want to trade lower charts, your best moves come from the wavy line-big arrow trades. See 1 and 2. Also check the top/bottom of the range to see you have enough room to get pips on the trade. Here you can see the top of the range black line. So you only look for sell trades at the top of the range or buy trades if there is enough room to get pips trading up.

At the #3 there is a big arrow and wavy line but not much room going up so the trade would not give you much.

VERY IMPORTANT.

1. Look for trades before the open of a session when trading lower TF. If price action is not in position to make a decnet move, go on to another pair.

2. Make sure the pair will move during a session, for example the NZD/JPY will move during the AUD and JPY sessions and all pairs will move during the USA session. You wouldnt look for trades NZD/JPY during the EURO session.

Trade 1 was the yesterdays USA session so a nice move
Trade 2 was the AUDNZD session so a nice move
Trade 3 was EURO session so not much there
AND NOW is the USA session but price is going up near the top of the RANGE line so dont bother.

That is how you range trade:

SO mark your RANGE area, THEN go trade a lower TF.

[nanningbob]

Here is the AUD/CHF with AUD being the stronger line. So the stronger faster moves will be buys. This pair will trade well during the AUD session and EURO session. ALL pairs trade well during the USA session.

[nanningbob]

aud/chf 30M chart. Looking for trades off the top of the range area. Euro/USA sessions were 3 trades in the 20 pip range. Also a news spike story out of session late JPY. Wouldnt be looking then but it happens.

So some ideas when range trading.