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The 360 Degree Forex Indicator

The Opportunity

Trading the strongest currencies against the weakest currencies is the biggest edge that exceptional Forex traders have over average Forex traders. Those type of trades provide the strongest trends.

The Problems

 

No Charts

There are no charts for the US Dollar on its own (or any other currency for that matter) – you have to compare the USD with something else to get a feel for the strength or weakness of the currency.

By looking at the EURUSD you can get a feel of whether the US Dollar is stronger or weaker than the EUR. This is a narrow view as the EUR itself could be very strong or very weak so you are only getting information on the EUR compared to the US Dollar.

The Confusion

What makes this comparison even more confusing is that different time periods will give you different perspectives. The EUR could be stronger than the Dollar on the monthly, 4hour, 15 minute charts and weaker on the weekly, daily, 1 hour, 30 minute, 5 minute and 1 minute charts. Pretty confusing isn’t it.

The Sheer volume of information

And that is only 1 cross, the EURUSD. Imagine trying to do it for the top 8 currencies crosses in all Time periods. You would have to look at 8 x 8 = 64 possible crosses. This amount can be halved as you don’t need to both the EURUSD and the USDEUR. But then you would have to look at 32 charts in each time period (Monthly, Weekly, Daily, 4 Hour, I Hour, 30 Minute, 15 minute, 5 minute and 1 minute charts) 32 x 7 = 224 constantly changing charts and readings.

The solution

THE 360 DEGREE INDICATOR. It calculates the strength of a currency compared to all its crosses on all time periods at the same time in pips. It then presents all this information in table formats. These tables sit on your charts and updated in real time – you always know the exact relative strength of a currency compared to other currencies in different time periods ALL the time.

It is ideal to trade the strongest currency against the weakest currency. When the currency cross consists of a strong currency/weak currency you should BUY. When the currency cross consist of a weak currency/strong currency then you should SELL.

TABLE 1

The basic relative strength readings over various periods ranging from 3 hours to 3 months as shown below. The figures in the blocks show by how many pips the currency has weakened or strengthened. The red blocks show weakened currencies and the green blocks show strengthened currencies:-

You will notice that relative strength is measured in time periods that are not in-line with chart timeframes. This way of measuring relative strength has evolved by user experience over the years and the time periods in place have been found to be informative. Relative strength using short term time frames( 1 minute, 5 minutes, 15 minutes, 1 hour etc.)  have not been meaningful and often misleading. Relative strength trading is intended for longer term perspectives.

Examples of the kind of information you can get from this table are:

  1. The JPY has overall strengthened compared to other currencies over all measurement times (sign of a sustained strong currency)
  2. The CHF and the EUR, overall has weakened compared to other currencies over all measurement times, except for the 1 month period (sign of a sustained weak currency )
  3. In the last day the CHF has lost 995 pips overall compared to other currencies whereas the CAD has gained 653 pips overall compared to other currencies. With the benefit of hindsight buying the CADCHF would have been the best trade to make.
  4. You can also see trends in this table. The USD was strengthening in the short term whereas the EUR was weakening in the short term. Selling the EURUSD would have been a good move.
  5. Except for the 6 hour view the AUD has been in a strengthening trend.

TABLE 2 You will see that the Total column in table 2 is the same as the total column in Table 1. Table 2 breaks the Currency Total column down into the various other currencies that make up the total column for a selected time period shown in the top left corner.

Just because the EUR lost 470 pips against other currencies  you will see that it actually gained value compared to the CHF. This detail is important as when deciding to trade a particular currency cross. You can change the time period by clicking on the time period heading you want to view in Table 1

TABLE 3

Table 3 allows you to compare a particular currency with all other currencies and all other time periods. The EUR was specified in the above example as shown by the currency in the top left corner of the table.

Again you can see that the EUR row in table 2 in reflected as the 1 Day column in table 3 to give a different perspective.

You can change the currency by clicking on the currency you want to view in Table 1

How to make the entry decision

Most traders use indicators to take trading decisions. To watch the indicators on say 20 currencies in up to 6 timeframes would require you have 120 indicator charts open.

Again the 360 Degree indicator shows you the exact readings of more than 120 or more indicator charts in one simple table.

You can then use the indicator readings to identify overbought, oversold, sideways and trending currencies and enter according to your trading strategy.

Potential trading approaches

 

1. A possible trading process when using the relative strength part of the 360 Degree Indicator

STEP 1:  Use the indicator to identify the strong and weak currencies in your favourite time periods and formulate a trading strategy – e.g. to buy the strongest and sell the weakest.

STEP 2: Use the Multi-period Indicator to identify trading if there are any trading opportunities for the currencies identified in Step 1 when using your favourite indicator

STEP 3: View the chart of the currency you want to trade to confirm your decision and place your trade using an EA or a manual approach.

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2.  The possible trading process using the multiple time frame part of the 360 Degree Indicator.

STEP 1: Find overbought, oversold, trending currency trading opportunities from the multiple time frame Indicator table.

STEP 2: Check your trade identified to see if you are trading a strong currency against a weak currency.

STEP 3: View the chart of the currency you want to trade to confirm your decision and place your trade using an EA or a manual approach.

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3. The possible trading process using ANY trading technique.

STEP 1: Find a potential Forex trade using ANY method.

STEP 2: Check your trade identified to see if you are trading a strong currency against a weak currency or if there are conflicting indicator signals

STEP 3: View the chart of the currency you want to trade to confirm your decision and place your trade using an EA or a manual approach..

"After checking my negative trades last week I found that 90% of them were caused by me selling strong currencies and/ or buying weak currencies. I can't believe how stupid my trading had become because I was too lazy to check my trades against the trends created by strong and weak currencies. It is so easy to fall into bad habits without noticing it. I thought the market was just out to get me. Now I can trade with much more confidence." - Tony (New Zealand)

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How to download this indicator.

The 360 Degree indicator provides essential trading information for Forex Traders who are trading manual or automated Forex Strategies. It does not trade for you and is not a continuously traded EA at all. The indicator is in EA format. It is a non-trading EA.

The 360 Degree Indicator is unlimited and will give you relative strength information on all currencies and time periods. It also will provide multi Period readings for the MACD, RSI, CCI and Moving Averages in all time-frames (you can request other indicators to be added). You can download the compete version using the PayPal button for the special launch price of $49.95

Your purchase allows you to use the indicator on as many charts and as many times as you like as long as you do not use it more than 2 computers at the same time. Also included are free updates and support.

Existing clients who own an Expert4x EA or Indicator supplied by EAFactory can purchase the Complete version directly from the EAFactory website ( http://my.eafactory.com/expert4x ) at 50% discount

If you have any questions or comment please use this facility: COMMENTS

More information about the 360 degree Forex indicator

The input section is very easy and gives total flexiblity

View on the trading screen when using the complete version. The indicator only needs to be loaded on one/any trading screen and it will work for all currencies.

  • q-iconDoes the currency strength EA/indicator use up a lot of CPU capacity in its calculations, across many currencies?

    Yes, this is a very powerful indicator and uses above average amount of resources. It has to create history of most currency crosses to do a complete market analysis. Please allow a few minutes when using the indicator to do this when using it for the first time. Tips to deal with this is to only use your favourite currencies that you are actually going to trade at first. Also make sure your computer memory is always cleaned by deleting temporary internet files and rebooting regularly. A resource monitor is part of the indicator display.

Disclaimer:- The information on on-line Forex trading presented on this website should not be regarded as Forex or currency trading advice. Currency trading and Fore trading is a highly speculative way of making money and should not only be done with the information on this website only. Accordingly, we make no warranties or guarantees with respect to the correctness or validityof its content. Forex traders, swing traders and day traders making use of the on-line currency trading information presented do so at their own risk. The Forex market information provided herein does not take into account their Forex investing objectives, financial situation or needs of any particular person. This site is not intended to by used as the only source of currency trading information, Forex education or work from home opportunity. It is important and assumed that traders use sound trading principles when using the on-line Forex trading information on this currency trading site. Please use demo accounts where there is no investment required to test Forex Strategies. This includes trading common sense, sound money and risk management and full personal ownership of any trading decisions.  This disclaimer  applies to all services, including PayPal, Google, Click Here, Yahoo, Ebay, YouTube and ClickBank promotions placed on the website. Investors should obtain individual financial advice based on their own particular circumstances before making any foreign currency investment decision.