nanningbob » Fri Jan 17, 2014 8:40 am wrote:

fx8000 » Fri Jan 17, 2014 8:11 pm wrote:If you had not been alerted by Bob earlier about the impending NZD turn around, this perfectly valid 10.4 setup would have failed, as the H4 bar was green at the time, and STO7 had earlier signalled > 20/40.

So the method is not as easy as it seems.

I always say this and it is something I learned in my first years of trading. Fundamentals always trump indicators. When they come into play they will dominate. The CSS is basically a fundamental indicator telling us what the overall fundamental of a currency is. Is it weakening, strengthening, slowing down, speeding up? These are fundamentals. From studying these CSS charts I noticed that the NZD trails the AUD most of the time. In other words the fundamental is where the aud goes the nzd will follow.

My 10.6 relies on reading the CSS first and then going to the charts to trade. It told me the aud was dropping and ready to cross the 0 line, which means DT territory. So following protocol I started looking for signs of reversals on the NZD currency crosses. I mentioned the nzd/chf as an example. I had closed all my nzd buy trades to prevent DD. I placed a couple of trades above the previous highs and looked to see if I would get a breakout. Well the news story did it for the gbp/nzd.

The CSS tells you where to go look and what to look for. I also mentioned that the aud, nzd, and jpy are seldom on the same side of the 0 line. Which one was going to break?? I didnt know. The AUD news story broke. So I began to look for signs on the NZD. I placed some trades and bingo it worked.

Since Nov. 1 NZD cross pairs account for 43 of my won pips or 43% of my winnings. I cant tell you how powerful that information is and how much it helps my profitability. Unless some unusual outside force affects this relationship I will be selling the NZD until I see the AUD change directions. Then I know I have a day or two to prepare to reverse directions. The bottom line is I could make a living just doing that one series of trades. Follow the AUD on the CSS and then trade the NZD. You could probably retire in 3-5 years with that information alone in trading. It is there as long as the aud:nzd relationship exists.

Pipstubborn » Sat Jan 18, 2014 9:37 am wrote:

nanningbob » Fri Jan 17, 2014 8:40 am wrote:

fx8000 » Fri Jan 17, 2014 8:11 pm wrote:If you had not been alerted by Bob earlier about the impending NZD turn around, this perfectly valid 10.4 setup would have failed, as the H4 bar was green at the time, and STO7 had earlier signalled > 20/40.

So the method is not as easy as it seems.

I always say this and it is something I learned in my first years of trading. Fundamentals always trump indicators. When they come into play they will dominate. The CSS is basically a fundamental indicator telling us what the overall fundamental of a currency is. Is it weakening, strengthening, slowing down, speeding up? These are fundamentals. From studying these CSS charts I noticed that the NZD trails the AUD most of the time. In other words the fundamental is where the aud goes the nzd will follow.

My 10.6 relies on reading the CSS first and then going to the charts to trade. It told me the aud was dropping and ready to cross the 0 line, which means DT territory. So following protocol I started looking for signs of reversals on the NZD currency crosses. I mentioned the nzd/chf as an example. I had closed all my nzd buy trades to prevent DD. I placed a couple of trades above the previous highs and looked to see if I would get a breakout. Well the news story did it for the gbp/nzd.

The CSS tells you where to go look and what to look for. I also mentioned that the aud, nzd, and jpy are seldom on the same side of the 0 line. Which one was going to break?? I didnt know. The AUD news story broke. So I began to look for signs on the NZD. I placed some trades and bingo it worked.

Since Nov. 1 NZD cross pairs account for 43 of my won pips or 43% of my winnings. I cant tell you how powerful that information is and how much it helps my profitability. Unless some unusual outside force affects this relationship I will be selling the NZD until I see the AUD change directions. Then I know I have a day or two to prepare to reverse directions. The bottom line is I could make a living just doing that one series of trades. Follow the AUD on the CSS and then trade the NZD. You could probably retire in 3-5 years with that information alone in trading. It is there as long as the aud:nzd relationship exists.

Bob, if you study the monthly AUD/NZD you will see that confirms the D1 CSS reads and the prevailing relationship.

Could this relationship reverse? meaning that in the future the AUD could follow the NZD instead?

Thanks for your always invaluable thoughts.

Bob, if you study the monthly AUD/NZD you will see that confirms the D1 CSS reads and the prevailing relationship.

Could this relationship reverse? meaning that in the future the AUD could follow the NZD instead?

Thanks for your always invaluable thoughts.

Pipstubborn » Sat Jan 18, 2014 9:45 pm wrote:Thanks Bob, maybe my question was not clear enough. I don't trade the AUD/NZD either.

But it called my attention to see the NZD folowing the AUD on the D1 CSS and asked myself... could this pattern reverse?

That's why I took a look to the monthly AUD/NZD chart.