Bob,
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.
