Relative Strength Analysis

[foreigner]

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

 

[foreigner]

Ill let the chart do the talking

 

[TopFroxx]

and that's why cointegration trading works in forex

 

[Hyperloop]

Ill let the chart do the talking

May I ask how the strengths of the currencies were evaluated?

 

[foreigner]

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.

 

[TopFroxx]

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.

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.