Review Hybrid Grid Strategy Wk 51&52

Last week no orders were placed because of lower liquidity in the coming period. Because of this in the coming 2 weeks no positions will be opened because prices act different during periods of lower liquidity and it is not worth the risk. Keeping your balance stable may be the best strategy during these periods. What you don't lose does not need to be earned back again! Meaning that every winning trade that will be opened at a later date is then profit rather than loss compensation.

Even though no trades will be placed in the coming period I will provide my view in this article on the EUR/USD and analyse it in more detail. It is the pair with the highest liquidity and for that reason the best pair to trade during periods where we are in currently.

- All trades are based on specific rules according to the FxTaTrader Hybrid Grid strategy.

- For the performance and closed positions click here.

This article will provide:

• The weekly currency chart for the analyzed pair.
• The weekly(decision) TA chart for the analyzed pair.
• A Technical analysis for the analyzed pair of the Daily, Weekly and Monthly chart.

According to the TA Charts, the "Currency score" and the "Ranking & Rating list", all the pairs in the Top 10 of the "Ranking & Rating list" are good to trade except for GBP/AUD and the AUD/NZD. These are 2 pairs outside of the Bollinger Band in the Weekly chart. GBP/AUD may move easily within the Bollinger Band next week but the AUD/NZD needs a strong pull back to achieve this.
There are some rules for taking positions according to the FxTaTrader Hybrid Grid Strategy. The strategy can open multiple positions of a currency pair but each currency may only be present once in the same direction in the pairs chosen for trading. It means that not all the possible positions of this coming week can be opened. For more information see FxTaTrader Hybrid Grid Strategy. Another rule is that a pair outside the Bollinger Band in the Weekly chart is considered overbought/oversold.
For the coming week no positions will be opened because of the holidays and the lower liquidity in the coming period.

EUR/USD

The situation compared to the last weeks has improved and the pair is interesting for the Hybrid Grid strategy. The pair broke through the lows of last weeks on Dec. 7 and Dec. 18. It seems like the downtrend is picking up momentum again. It is clearly in a downtrend in all the time frames being analyzed for the strategy, meaning the 4 hours, Daily, Weekly and Monthly charts.

• As can be seen in the Currency Score chart in my previous article of this weekend Forex Weekly Currency Score Wk 52, the EUR is having a score of 3 and the USD a score of 8. With a Currency score difference of 5 and the USD having a classification of stronger currency while the EUR is a weaker currency it is an interesting pair in the coming week for going short.
• The position in the Ranking and Rating list in the last weeks also shows that the pair is attractive for taking short positions. In the current list of this weekend Forex Ranking & Rating Wk 52 the pair has a rank of 5. This list is used as additional information besides the Currency score and the Technical analysis charts.
• Besides the general information mentioned the outlook in the TA charts also makes it an attractive opportunity.

Ranking and rating list Week 52
Rank: 5
Rating: - -

Weekly Currency score: Down
Based on the currency score the pair looked interesting in the last 3 months. The USD is a stronger currency from a longer term view and currently having a currency score of 8. The EUR is a weaker currency from a longer term view and currently having a score of 3. Based solely on this information the pair looks interesting for going short in the coming week.



Monthly chart: Down

• On the monthly(context) chart the indicators are looking strong for going short.
• The Ichimoku is not meeting all the perfect conditions with the MA's being at the bottom of the cloud instead of below. The MA's crossed but this did not happen below the cloud. However, price is well below the MA's and the cloud because of the fast decline in the last months.
• The MACD is in negative area and gaining strength.
• The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.
• Since the monthly chart is used to get the context how that pair is developing for the long term the indicators are looking fine because they are showing a clear downtrend.

Weekly chart: Down

• On the weekly(decision) chart the indicators are looking strong for going short.
• The Ichimoku is meeting all the conditions.
• The MACD is in negative area regaining strength.
• The Parabolic SAR is short and showing the preferred pattern of lower stop loss on opening of new long and short positions.

Daily chart: Down

• On the daily(timing) chart the indicators are looking strong for going short.
• The Ichimoku is meeting all the conditions.
• The MACD is in negative area consolidating and looks like picking up strength any time soon.
• The Parabolic SAR is short showing the preferred pattern of lower stop loss on opening of new long and short positions.

Total outlook: Down



Although the explanation may seem simple and clear there is always risk involved. I added a disclaimer to my blog for this purpose. If you would like to use this article then mention the source by providing the URL FxTaTrader.com or the direct link to this article. Good luck in the coming week and don't forget to check my weekly Forex "Ranking and Rating list" and the "Currency Score".


DISCLAIMER: The articles are my personal opinion, not recommendations, FX trading is risky and not suitable for everyone.The content is for educational purposes only and is aimed solely for the use by ‘experienced’ traders in the FOREX market as the contents are intended to be understood by professional users who are fully aware of the inherent risks in forex trading. The content is for 'Forex Trading Journal' purpose only. Nothing should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.