nanningbob » Sat May 24, 2014 1:14 am wrote:
I went and had Milanese tto ake out the CHF from the CSS indicator. This way the CHF and EUR are one read and it doesnt affect the charts by double.

AnGri » Sat May 24, 2014 8:31 am wrote:Hi,

i'm still struggling to grasp how to make the best use of the CSS as guide to chosing pairs to check further for potential trade setups.

I especially have a hard time with the different reads the CSS indicator gives for 24, 12 and just a single pair on the chart.

For example, last week i was interested in selling EURJPY.

While the EUR had fallen below the -0.20 line and was clearly angling down with an angle of almost 45 degrees in all three variants of the CSS (24, 12, 1 pair), the JPY gave different reads (s. attached charts).

For 24 pairs my CSS did show JPY rising above the +0.20 line, making a small hook down and then run almost parallel to the line.

For 12 pairs and for only 1 pair on chart (EURJPY) my CSS did show a similar (identical?) pattern or move of the JPY, only this move happened below the +0.20 line, with JPY rising above the 0 line, making a small hook down etc. ...

Questions:

1. a) Could it be, that for 12 and for 1 pair on chart, the zero line has a similar function / merit acting as a "stop sign", that when passed will slow down / speed up currency into trending, like the +/-0.20 line has in the 24 pair CSS?

1. b) Or does the area between 0 and 0.20 line indicate ranging for 12 and 1 pair on chart CSS?

2. What to make of the fact that for 24, 12 and or for 1 pair on chart, the Eur has crossed the -0.20 line down, while the JPY has only on the 24 pairs CSS crossed above the +0.20 line? What does this really tell about the EURJPY and where it might head?

3. How to relate the different CSS readings to each other generally to get an opinion for a certain currency pair - in this case EURJPY?

Hope somebody can help clear up my confusion.

James Roscoe » Sun May 25, 2014 5:34 am wrote:
Hi Angelo, since I check this forum like a moderator( I am not a moderator, I just have nothing else to do this weekend) does, I thought I would be the first to give a view to your questions.

The CSS measures the momentum of the direction that a currency is going. To be specific to your question, the 12, 24, and 1 CSS are all dealing with a different set of variables, so they will not present the same data.

With regards to EUR/xxx, the euro is falling against everything else so you will be selling euro and buying whatever else. The CSS tells how much momentum is behind the move. Do not confuse momentum with volatility.

That's a start, I hope it helps.

AnGri » Sat May 24, 2014 10:31 pm wrote:Hi,

i'm still struggling to grasp how to make the best use of the CSS as guide to chosing pairs to check further for potential trade setups.

Dont feel bad, its a different kind of indicator in that it is showing overall strength/weakness of a currency. But it is worth learning and understanding.

I especially have a hard time with the different reads the CSS indicator gives for 24, 12 and just a single pair on the chart.

The only thing you have to concern yourself with are the currencies you trade. The 24 is what I trade on my main account. I want to know how they compare with each other. The 12 is an experiment, however, you can set up the CSS to read only the currencies you are trading. You only want to know their relationship to each other so you can trade them. Yes your chart will be different than others because you are only comparing a limited amount but it doesnt matter because you only want to know that relationship. The 12 is set up because I have a small account I am trading just those 12 pairs, so I only want to know how they relate to each other.

For example, last week i was interested in selling EURJPY.

While the EUR had fallen below the -0.20 line and was clearly angling down with an angle of almost 45 degrees in all three variants of the CSS (24, 12, 1 pair), the JPY gave different reads (s. attached charts).

For 24 pairs my CSS did show JPY rising above the +0.20 line, making a small hook down and then run almost parallel to the line.

For 12 pairs and for only 1 pair on chart (EURJPY) my CSS did show a similar (identical?) pattern or move of the JPY, only this move happened below the +0.20 line, with JPY rising above the 0 line, making a small hook down etc. ...

Questions:

1. a) Could it be, that for 12 and for 1 pair on chart, the zero line has a similar function / merit acting as a "stop sign", that when passed will slow down / speed up currency into trending, like the +/-0.20 line has in the 24 pair CSS?

1. b) Or does the area between 0 and 0.20 line indicate ranging for 12 and 1 pair on chart CSS?

If I want to compare a Toyota with a Chevy, I dont think about other cars. I just compare these two and see what their differences are their strengths and weakness against each other. If I compare a Toyota with a Chevy, Saab, Volkswagen, then that comparison expands and we have more variables. If I compare a Toyota against all other cars then there are even more variables. Maybe in example one Toyota is the best or #1, in the 2nd comparison it is #2, but against all it may come in 5th. Either way in every comparison it maybe rate better in the Chevy. Same thing with the CSS, it is a comparison of the variables you put into it. But the comparison variables are accurate in each one.

2. What to make of the fact that for 24, 12 and or for 1 pair on chart, the Eur has crossed the -0.20 line down, while the JPY has only on the 24 pairs CSS crossed above the +0.20 line? What does this really tell about the EURJPY and where it might head?

Once you understand that the variables you input can vary but the results still mean the same thing. This last week the EUR was on the bottom big time but the cause of that move was mostly caused by the eur/usd dropping like a rock. The other EUROs were not as big of a move.If you had a CSS with the eur and usd in the variables you would have this big drop. If you took the USD info out it would be much less. If you dont trade the eur/usd you wouldnt want that info in there. If you do then you would want it. I trade 24 pairs of currencies so I want to see all that input. If you trade only 12 then you would want the comparison between the 12 you trade. So you have a choice of overall market or just the market you trade. The CSS can be set up either way.

3. How to relate the different CSS readings to each other generally to get an opinion for a certain currency pair - in this case EURJPY?

The key information is not one is at 12 and another at 15, another at 25. The key information is the JPY is stronger than the EUR so go to your chart and see if you have a trade. That is what it is telling you in every case. In the case of the eur/jpy the move was on Tuesday and ended on Wednesday.

Hope somebody can help clear up my confusion.

nanningbob » Sun May 25, 2014 2:13 am wrote: See .... chart below.

Mike » Sun May 25, 2014 5:13 pm wrote:

nanningbob » Sun May 25, 2014 2:13 am wrote: See .... chart below.

Hi Bob, could you drop some words on your Indicators with the 3 bars on the right of above chart. Thanks Mike

tboy » Wed May 28, 2014 8:38 pm wrote:May I ask for a (layman!) explanation of the 'ignore future' option in the CSS...'true' gives a more erratic (responsive?) set of lines but what explains this? Grateful for a quick explanation.
Thank you
tboy