I learned here in this forum more in 1 week than I learned about forex in the last 2 years
you mentioned that
"Ones near or outside the 20 lines. These can be your most volatile and can explode quickly. The reason is as one car (currency) is slowing down towards the stop sign, the other is speeding up away from the stop sign. So as each car passes the other the distance between them can accelerate quickly. This can also lead to a good strong move on your charts."
Is it correct to say that according the indi the GBP crossed the AUD outside the 20 line so the GBP can move up strongly from here against the AUD.
The JPY crossed the NZD within the 20 lines so it means a ranging market with the JPY stronger.
Is my interpretations regarding this currencies correct
Normally that would mean a strong gbp against the aud. However, since it was Easter week and there was low volatility it may not be as strong as a normal market. This indi measures relative strength not volatility. Holidays, Ukraine/Russia in the background, etc. can show one currency being much stronger than another but other events can affect the volatility of the move. So take into account Easter week flatness and be prepared for it to go big or both just go back inside the 20 lines.
The 10.6 read shows that it bounced off of the 240MA line on the 4H so gbp has not yet gone into UT mode. I am loaded for hunting gbp/aud buys if price action goes above the 240 line but so far we have a bounce back into range mode.
Now I am Beginning to Grasp the Use of this Indicator after so many Months of Having the Very first One,I Never quite got used to exploiting the Advantages of it's use but Now I have a Good idea of how to Use it, thanks for the very Eloquent hold my Hand and Make it Sink Clearly in my Brain Explanation with Visuals, In One Simple word... you ROCK
Happy Trading Y'all,
xrismak
nanningbob » Sat Apr 12, 2014 12:34 pm wrote:So let us review the basic reads of the CSS info page. I use the Daily almost exclusively and sometimes consult the 4H. But I have gotten whiplashed too many times on the 4H. The strength of the move simply doesnot change quickly and correctly reading your CSS with give you future clues of where price is going. So here are the basic rules.
Before I go over the rules again remember this. This indi only measures strength,it does not measure volatility. Pairs can cross and not go anywhere, trend times maybe small or short in duration but this indi will show these moves whether they are volatile or not. So this compares the relative strength of one currency against another but it does not predict the volatility.
A. Crosses.
When one currency crosses up and the other crosses down this is a switch in trend direction. The indi will show a bar to the far right of the chart letting you know a cross has happened between the two pairs. These can be some of your best trades.
There are 4 kinds of crosses.
1. Ones near or outside the 20 lines. These can be your most volatile and can explode quickly. The reason is as one car (currency) is slowing down towards the stop sign, the other is speeding up away from the stop sign. So as each car passes the other the distance between them can accelerate quickly. This can also lead to a good strong move on your charts.
2. Cross happens inside the 20 lines and the close 0. Since both cars are coming to a stop or just taking off from the stop sign their movements are slower and will build into a potential UT,DT to each other. Patience or smaller profits are in store here.
3. One pair stays between the 20 lines and one goes outside the 20 lines. These are a trend trade but not as strong as #4.
4. One car goes above the +20 line and one car goes below the -20 line. These are you nicest long term trend runs. This is the signal to buy and hold. This is the only indicator I know that gives you this type of information and makes it clear to you. It does not mean they have to cross the 20 lines at the same time, infact most of the time it will happen on different days or even weeks. Either way take the ride and hang onto the trade unless you have a fundamental reason not too.
Well the bottom dropped out and there it goes. gbp/aud broke that 240 MA and just exploded. 1 trade 131 pips 2nd trade 50 pips for 181 pip total. Dang I love a day like that. I was expecting 20-40 and then all of a sudden boom. Wonder what happened but those two cars must have had 440 V8s with turbos on them. Set up for some more if it continues.
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nanningbob » Wed Apr 23, 2014 3:00 pm wrote:Well the bottom dropped out and there it goes. gbp/aud broke that 240 MA and just exploded. 1 trade 131 pips 2nd trade 50 pips for 181 pip total. Dang I love a day like that. I was expecting 20-40 and then all of a sudden boom. Wonder what happened but those two cars must have had 440 V8s with turbos on them. Set up for some more if it continues.
It was a reaction to news, lower than expected CPI followed by more uninspiring Chinese manufacturing data.
I, of course, missed the whole thing.
Adam63 » Wed Apr 23, 2014 2:06 pm wrote:
It was a reaction to news, lower than expected CPI followed by more uninspiring Chinese manufacturing data.
I, of course, missed the whole thing.
I really like to play the crosses you never know what you will walk into and that was an example.
Adam63 » Wed Apr 23, 2014 2:06 pm wrote:
It was a reaction to news, lower than expected CPI followed by more uninspiring Chinese manufacturing data.
I, of course, missed the whole thing.
I really like to play the crosses you never know what you will walk into and that was an example.
Exactly!
One thing the CSS is also good for, is peace of mind.
As long as the one that you're buying is above the one that you're selling, some DD will vanish and price will come your way.
Still in GBPAUD as I believe it will rise further. Closed GBPJPY longs for some nice profit.
It's just wednesdaymorning, and I'm over 2.000 pips for the week already.
HI Bob, I'm understanding much better the D1 CSS now, specially last week with the commodity currencies were/are angling down and the others angling up. The info page is awhole picture of what pairs to trade and which ones not. Indeed D1 CSS have less noise than H4 CSS.
Questions
1.- Can we read H4 CSS lines as a pullback of the D1 CSS lines when they disagree?
2.- Is the old 10.2 TMA Slope coming back when the bug is fixed as you mention somewhere on 10.6?
As always, thanks very much for your relentless teaching and sharing of invaluable information. Will like to know your thoughts.
Pipstubborn » Mon Apr 28, 2014 8:06 am wrote:HI Bob, I'm understanding much better the D1 CSS now, specially last week with the commodity currencies were/are angling down and the others angling up. The info page is awhole picture of what pairs to trade and which ones not. Indeed D1 CSS have less noise than H4 CSS.
Questions
1.- Can we read H4 CSS lines as a pullback of the D1 CSS lines when they disagree?
2.- Is the old 10.2 TMA Slope coming back when the bug is fixed as you mention somewhere on 10.6?
As always, thanks very much for your relentless teaching and sharing of invaluable information. Will like to know your thoughts.
1. Yes you can but I use my reads on the screen for that. I think the screens tell me better what a pullback is doing over the 4H CSS chart. Probably if I could watch the CSS screen all day I would find more use for it but I cant, so I rely on the Daily CSS reads and then what I see on each individual chart. There are some traders who really like the 4H CSS and they probably could answer better on how to use it.
2. The 10.2 TMA slope and CSS are the same except CSS puts all the currencies into one line. The 10.2 TMA is being looked at for another possible use but that is some time away depending on what we think we can use for it. Basically I am trying to see if I can do with it like a 10.7 version of the slope. More or less playing around with it.
Gertje » Wed Apr 23, 2014 4:50 pm wrote:My CSS infopage looks like a pinball machine, crosses and dots everywhere.
Looks like we're going to get some more volatility the rest of the week!
