There is a very simple formula for identifying the strongest and weakest currencies. Once you can identify, you are expected to find profitable entries in the direction of the dominant trend. What you need to know is that the only difference between traders is that traders who can follow trends can hold positions longer while traders who wait for a reversal.
After being able to identify the strongest and weakest currencies, you are expected to find profitable entries in the direction of the dominant trend. What you need to know, what distinguishes a successful trader from a failed trader is basically his patience. There are traders who can follow the trend to hold positions longer and there are also traders who are waiting for a reversal usually very risky of failure. Why do people of the type waiting for a reversal have the potential to get trading losses? Because trends tend to move in a longer direction than most people think.
To be able to identify the strongest and weakest pairs, you need to do an analysis. Add fractals and CCI to the chart to find entries or look for breakout points.Method of Analysis Place a moving average on a currency pair, preferably on an hourly chart or even greater. It is recommended to use Excel or a piece of paper to note which areas are the strongest or weakest. This will make it easier for you to take the strongest and look for entries against the weak. If you use a 4-hour chart, you will place a large moving average. For example using EURJPY for a period of 200, you will see a strong pair given EUR and a weak sign for JPY.
You can use several methods. The method that can be used is to implement a breakout strategy. In addition to using the breakout strategy, you can also apply the CCI Fractal strategy. Everything in these methods serves to provide the correct way to execute entries when we know which areas are strong and which pairs are weak.
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