Discussion in 'Trading' started by bgp, Dec 30, 2010.
what indicator shows the best strength or weakness of a currency ?
i personally look at rsi, but am curious what else may help.
1 - I don't trade currencies, but since nobody answered you....
2 - I use 16/20 ma crossover, and RSI (legacy preferred, which TOS has) set to 20 periods, on half hour bars, on the dollar index.
This is just my default setting for something I look at but don't trade. It gives me a reasonable sense of what the trend is.
It's background info to my trades in GDX, the etf for gold stocks. If I actually traded it, I'd probably zoom in a bit more.
As an FYI, the only thing I look at in RSI is whether its above or below 50. I don't think the oversold/overbought lines have any meaning at all.
I primarily Look for weakness in the price action and use 10 ema as aguide for direction/momentum.
The trend of the underlying price. No mumbo-jumbo "calculation is necessary.
thanks guys for you kind replys. i trade spreads with currencies and to use price alone it just doesn't seem enough. so i am always looking to try and tweek my simple program . trefoil and joke i appreciate your input and nazz.
if the price moves independently from the futures, moving average cross-overs are also usefull
Separate names with a comma.