Internal Strength Trading

[dusant]

Hello Traders,
This is my intraday update, with charts updated around 12:30 (GMT)/07:30(NY).
The charts can be accessed at Click here on the updated link.
As usual, comments are welcome.
Dusant

[dusant]

Hi fellow traders.
My daily updates as on 07:45 GMT (02:45 NY).
There has been no discussions about these charts since i have been posting my links. I wonder if people are indeed reading these posts or pursuing the charts, or is all in vain.
View the charts here, by clicking this link.

[MattH]

Dusant

I have looked at your charts a few times - 1 problem - I have no idea what they are meant to show???

I have attached the GPBUSD one for this morning here - can you explain what you are trying to "Recommend" with this chart. You have put that yesterday we should have entered a sell order - however, how does your chart help today???

I'm confussed
Cheers Matt

[MattH]

oops - first time i've tried to post a chart attachement & it hasn't worked as i planned

[Tekunda]

Dusant, I think the lack of discussion derives directly from the lack of information you are willing to render.
The first posts were only charts, with no further explanation.
Only later did you post a few more details about your indicator.
Did you assume that people all are familiar with the internal strength indicator of currencies you are using?
If you want to have a lively discussion going on - and I am looking forward to it - this forum needs far more food for thought coming from your side.

BTW,

Your indicator looks, to some degree, like the indicator of www.Forextrm.com, which there is called the Momentum indicator and is suppoesedly built on the theories of Hurst. Did you use the same mathematical theories also?

[dusant]

Matt
Thq for ur post. I'm glad it gives me an opportunity to explain.

The basic premise here is that if the GBP is rising against the USD, that currency is gaining strength. At the same time, the USD is weakening.

From the second week of October, the internal strength of USD (red line) is showing a warning of strength vis a vis the GBP (green line). While the GBP is rising, and made a higher peak its Internal Strength has made a lower peak, thus exhibiting a classic negative divergence.
Similarly, there is a positive divergence displayed by the USD Internal strength. Because the USD has been weakening all the while and yet its internal strength is rising. In effect, its Internal strength also has made a negative divergence.

During the last four days, there has been a change in the movements of the respective internal strengths, which are now moving towards each other, setting up a potential crossing.

The signals are calculated by another algorithm. These are calculated by a complex set of mathematical rules devised by me.

However, the rules are simple:
Long term trend up and short term trend up = Long Entry (LE)
Long term trend up[/color] and short term trend down = Long Exit (LX)
Long term trend down and short term trend down = Short Entry (SE)
Long term trend down and short term trend up = Short Exit (SX)

The signal generated four days back was a LX (long exit). Yesterday, a short entry was generated. On a daily basis, therefore, a trader should consider shorting options.

Any more q's please do not hesitate.

Dusant

[dusant]

Tekunda,
Thank you for your frank comments. Yes I admit, sheepishly, that I have not posted enough material about my indicators and signals method. I hope that my previous post has corrected that to a certain extent.

I have heard of Hurst's methods, though I have not used his methodology. It's quite possible that my Internal Strength indicators are somewhat similar to another method. However, on your hint, I did visit Forex TRM site, and the charts shown on their first page with the Sigma Bands, are "somewhat similar" to Keltner's Channels.

I have great respect for anyone who tries out something different, even though it may be similar to any other method. But all said and done, no matter what method is used, the data is going to remain the same. And also the quest for trading that data successfully.

Cheers. :-)

Dusant

[MattH]

Thanks for response

Can your system be used to help trade on an Intra-day basis or is it more for 3-4 day swing trade moves??? If it can be used for intra-day are you suggesting today we should be looking for shorting opportunities only???

Cheers Matt