Monthly ranking and rating January / Sun. 11-Jan-2015. Analysis on 3 time frames with the Ichimoku & MACD indicator

Pay attention: This is an article based on the monthly strategy. The Weekly strategy article is published also.

There will be new articles based on the Monthly strategy and the evaluation of the strategy will also be discussed.
For this reason some pages on the website have been updated.
The following pages have been updated:
FxTaTrader Strategy
FxTaTrader Forex Ranking & Rating list
Stop loss settings

This weekend the first articles are published based on the monthly strategy. This article will be prepared every last Sunday of the month for the coming month and updated on the second Sunday of the month. This longer term strategy does not differ much from the weekly strategy. There are 3 important differences:

• The decisions are based on the monthly chart instead of the weekly chart and the timing is based on the weekly chart instead of the daily chart. There is no context chart.
• There is also more emphasis on taking carry trades because positions will be held longer.
• The profit target is 1/4 ATR of the monthly chart instead of the weekly chart.
  

A new evaluation account has been opened for this purpose. For more information you can check the Evaluation account on FxTaTrader.com. Check the article FxTaTrader Plans for 2015 also for more information. The longer term strategy uses the monthly chart for decision making and the Monthly ATR to calculate the profit target. The results are satisfactory up to now. One of the reasons for using a longer term strategy is the higher profit target. However the stop loss is also higher so the strategy will work in a similar way to the Weekly strategy except that less trades will be made and they will be held longer. The advantage of this is also that some pairs that cannot be traded Intra Week may very well be traded Intra Month and vice versa. The Monthly Ranking and Rating list, see here below, has been fine-tuned for this purpose and it is still under evaluation.

Besides the Monthly Ranking and Rating list provided here I will also prepare this month the Monthly Currency Score list on the first Sunday of the month which will support my analysis for trading in the coming month which is then followed by my Review on the Monthly FxTaTrader strategy on the third Sunday of the month. The articles will be published once a month during the month and one article every weekend.

When looking at the Top 10 in the Monthly Ranking and Rating list provided here we can see that for the coming month the following stronger currencies are well represented:
USD(4x), NZD(3x) and the GBP(3X). The EUR(4x) is clearly the weaker currency followed by the JPY(3x).

A nice combination for the coming month(s) may be e.g.:

• EUR/USD with the NZD/JPY
• EUR/NZD with the AUD/USD
• USD/JPY with the EUR/CAD
• GBP/JPY eith the USD/CHF

These are just a few examples and there are many other combinations possible. The mentioned pair combinations can be traded at the same time according to the rules of the FxTaTrader strategy because these are all different currencies. By not trading the same currency in the same direction more than once you may have better chances with lower risk.

This month (pending) orders were placed for the EUR/NZD. Profit has been made on 2 postitions and another 2 are still open. More details on the traded pairs will be provided in my strategy article that will be published also this month. The possible positions for coming month for the strategy will then also be described.


Analysis based on TA charts for all the major currency pairs. Good luck to all. No advice, just info. Every month the Forex ranking rating list will be prepared on the last Sunday of the month for the coming month. All the relevant Time Frames will be analyzed and the ATR and Pip value will be set.

There will be 1 update during the month on the second Sunday of the month. The Weekly and Daily chart will then be analyzed and updated.
This makes that there will be no more than 15 trading days between each update in case of a period with maximum 3 weeks in between. This is a reasonable period when considering that the smallest time frame used is the daily, meaning 15 price bars/candlesticks.

The FxTaTrader Monthly Forex ranking and rating list is meaningful data for my FxTaTrader Monthly strategy. Besides this list I also use the Monthly Currency Score which is available once a month on this blog also together with my monthly analysis on my Strategy. For more information on the FxTaTrader Forex Models, the "Ranking and Rating list" and "Currency Score" visit the following pages on my blog:
Introduction to the FxTaTrader Forex Models
FxTaTrader Forex Ranking & Rating list
Currency score explained

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.

_______________________________________________________

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.