Relative Strength Analysis

Discussion in 'Systems and Methods' started by foreigner, Dec 4, 2013.

  1. foreigner

    foreigner Est. 12480 Hours and Counting

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    For developing a better understanding of relative strength and how it can affect our trading decisions.
     
  2. foreigner

    foreigner Est. 12480 Hours and Counting

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    Ill let the chart do the talking

    [​IMG]
     
  3. TopFroxx

    TopFroxx Well-Known Member

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    and that's why cointegration trading works in forex :)
     
  4. Hyperloop

    Hyperloop New Member

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    May I ask how the strengths of the currencies were evaluated?
     
  5. foreigner

    foreigner Est. 12480 Hours and Counting

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    Hyperloop! Ive no idea, however thats somewhat rudimentary.

    There is a pattern that has repeated itself several times since 1973. Find the currency correlation and you have next years most probable big move, probably. ;)
     
  6. TopFroxx

    TopFroxx Well-Known Member

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    i'm currently letting matlab do some calculations based on cointegration. i did not have much success finding any significant relationship for the longer timeframes during the development of my strategy (longest considered timeframe is 3 months). but looking at the charts i might have set the timeframe too short. was looking for cointegration based on a one year timeframe and got no good results. let's see if 3 years change something.
     

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