nanningbob wrote:A trader sent me a very good PM and I want to answer it here.

On the prior weeks we were watching the Daily CSS in the info page. With the new system and RAM saving I thought we will be watching the Daily CSS of the individual pair looking for strength/weakness of each currency same as in the Info Page.

So, looking at the inputs we have a Time Frame set to D1, but the Auto Time Frame is set to True causing that we are watching a CSS H4 on the H4 chart and not the D1 CSS.

The daily CSS or 10.4 info page has not changed. It compares all the different currencies with each other and lets us know which ones are running the strongest at the moment. Right now we can read it and know the GBP and JPY are running the strongest. NO need to look for JPY shorts until it shows weakness. Look for GBP buys. ETC.

The new CSS only compares the two currencies the chart is on. It lets you know of the two which one is stronger and which one is weaker. It helps to filter out getting in too early into the action.

I use a third filter and that is some knowledge of fundamentals. We will not see the same kind of JPY moves we did last month but when the BOJ starts buying bonds again and adding some more currency into the economy you will see JPY weaken and take the ride. How far it will go this month I dont know but it may or may not break its previous high/low on each pair. One of these months it will. I am looking right now for the bond buying date so I can be into those moves. This time though I will also be looking for when the move slows down and I can exit my positions. The new CSS will let you know on each pair. There will be months another currency maybe dominating the market (like further deterioration of China's economy and its effect on the AUD and NZD) or (more Euro News) or (USA congress and President have a budget, yeah right) and it wont move as much or not at all. The new CSS will give you that info so you arent guessing.

The use of the CSS on the info page is different than the CSS on each page. One is all the currency pairs compared to each other and the new one just the two pairs on the screen. I find the info valuable on both.

Jemook wrote:Still the method of waiting for weakness (goldenrod) in css slope before entering and using a colour change for exits is great in combination with the 240 MA as a trend direction. At least if you get caught out wrong you are out quickly.

garyfritz wrote:

Jemook wrote:Still the method of waiting for weakness (goldenrod) in css slope before entering and using a colour change for exits is great in combination with the 240 MA as a trend direction. At least if you get caught out wrong you are out quickly.

I haven't looked at the indicator code, but doesn't the goldenrod signal come when the two CSS lines cross? Which is a measure of *level*. I would think change of *distance* direction would be better. I.e. when they start converging, or start diverging, signal then. Unfortunately the distance value is pretty noisy and would probably produce a lot of false signals.

garyfritz wrote:

nanningbob wrote:Trying to get some clarity on the market here. The Daily CSS tells me there is a Euro currency on top, in the middle and on the bottom. The Asian currencies have a currency on top in the middle and on the bottom and the USD and CAD has one in the positive and one in the negative. Now that is clarity. I think I will go back to bed and suck my thumb.

Bob, I believe you're using the CSS *level* to determine strongest/weakest. I've beaten the level vs. direction drum for a long time, and I think it applies here too.

The currency on the top of the CSS display is not necessarily the strongest, and vice versa on bottom. You have to pay attention to the DIRECTION the CSS line is going, too.

For example: look at EURUSD in Jan/Feb. EUR was the top CSS line from mid-Jan to early Feb; meanwhile USD was pretty flat so any changes in EURUSD should be coming from EUR. EUR peaked at the end of Jan, then turned down a few days later. EURUSD *instantly* dropped, while EUR was still "strongest." By the time EUR slipped into the #2 position, EURUSD was down almost 300 pips. EURUSD was down EIGHT HUNDRED PIPS by the time EUR was "weakest," i.e. on the bottom of the CSS.

Direction.gif

Or look at AUDCAD in late March when CAD was flat. AUD peaked on Mar 21, and AUDCAD instantly topped out and soon started dropping -- while AUD was still "strongest."

EURCAD jumped soon after EUR bottomed out in late March, and was up 200 pips by the time it was no longer "weakest."

There are lots of other examples but you get the idea.

It might even help you with your search for regional clarity. 2 of the 3 Euro currencies were dropping, then all 3 turned up. NZD and AUD have been dropping in tandem, even though their levels are different. (JPY readings still make no sense.) USD and CAD are going kinda sideways.

Watch changes of direction in CSS and I think you'll get a lot better/earlier currency signals. Watch the changes of distance between CSS currencies and you'll get better pair signals. E.g. GBPUSD bottomed out and started climbing in early March when GBP and USD started getting closer -- while USD was still "strongest" and GBP was still "weakest" but GBP headed up and USD headed down.

Gary

garyfritz wrote:Right. The threshold accepts two CSS values if they're close to each other -- which looks at the level -- ignoring the direction they're moving. So e.g. two CSS values that are dead flat but close to each other will pass the threshold test, even though the pair could actually break in either direction. The CSS crossing signal is also much later than the indication you get by looking at direction and CSS1-CSS2 distance.

zentauro67 wrote:@cmeade2

I run it with FXCM and Oanda and in both is already in goldenrod, but Alpari still green... WTF!

ALPARI UK

Alpari.jpg

OANDA

oanda 2.jpg

Too much differences in previous bars also. Both indis are reset to OOTB. Yes, maybe a GMT issue. Candles have different closings. I think Alpari is GMT +3

nanningbob wrote:

garyfritz wrote:

nanningbob wrote:Trying to get some clarity on the market here. The Daily CSS tells me there is a Euro currency on top, in the middle and on the bottom. The Asian currencies have a currency on top in the middle and on the bottom and the USD and CAD has one in the positive and one in the negative. Now that is clarity. I think I will go back to bed and suck my thumb.

Bob, I believe you're using the CSS *level* to determine strongest/weakest. I've beaten the level vs. direction drum for a long time, and I think it applies here too.

The currency on the top of the CSS display is not necessarily the strongest, and vice versa on bottom. You have to pay attention to the DIRECTION the CSS line is going, too.

For example: look at EURUSD in Jan/Feb. EUR was the top CSS line from mid-Jan to early Feb; meanwhile USD was pretty flat so any changes in EURUSD should be coming from EUR. EUR peaked at the end of Jan, then turned down a few days later. EURUSD *instantly* dropped, while EUR was still "strongest." By the time EUR slipped into the #2 position, EURUSD was down almost 300 pips. EURUSD was down EIGHT HUNDRED PIPS by the time EUR was "weakest," i.e. on the bottom of the CSS.

Direction.gif

Or look at AUDCAD in late March when CAD was flat. AUD peaked on Mar 21, and AUDCAD instantly topped out and soon started dropping -- while AUD was still "strongest."

EURCAD jumped soon after EUR bottomed out in late March, and was up 200 pips by the time it was no longer "weakest."

There are lots of other examples but you get the idea.

It might even help you with your search for regional clarity. 2 of the 3 Euro currencies were dropping, then all 3 turned up. NZD and AUD have been dropping in tandem, even though their levels are different. (JPY readings still make no sense.) USD and CAD are going kinda sideways.

Watch changes of direction in CSS and I think you'll get a lot better/earlier currency signals. Watch the changes of distance between CSS currencies and you'll get better pair signals. E.g. GBPUSD bottomed out and started climbing in early March when GBP and USD started getting closer -- while USD was still "strongest" and GBP was still "weakest" but GBP headed up and USD headed down.

Gary

The problem is your comparison example is a bad example. The GBP is the strongest currency across the board right now and just because there is a dip on one currency pair in the UT doesnt change the fact that the GBP is the strongest currency on the board right now.

You use Aud Nzd as an example. The NZD is still stronger than some currencies and is still above the 240 line on several still. The Aud is on the weak side on every single currency. So yes it is accurately telling you the overall strength of the currency.

In your Eur USD example you ignore the fact that the USD was the 2nd or 3rd strongest currency during the same time. So the difference in price movement would not be as great as compared to the weaker currencies.

I played AUD weakness yesterday and GBP strength and increased my account over 4%. So keep beating your drum. The angle down does not necessarily mean it is changing direction, It means the rate of increase is decreasing but it is still increasing in strength. I will continue to play GBP strength today and AUD weakness. I will use the 1H chart to determine if I want to get back into those trends today or not. WHY? Because every GBP is above the 240 line and every AUD pair is below the 240 line. Those are my strongest trends and that is where you will find my trades going.

I go to the 4H or 1H chart and find my best entrance and let it fly.

Yesterdays results following the 10.4 CSS and confirming with 4H/1H charts all trades = 650 pips.

gbp/nzd +168
aud/cad -14
aud/chf +73
gbp/aud +77
gbp/cad +28
gbp/jpy +35
aud/usd +85
aud/nzd -14

Totals on just gbp and aud trades +438

I will stick with it as is.