Pair trading and multicurrency arbitrage. The showdown. - page 138
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what is the strength of a currency ?
here is a convolution of days in the range 0..1, shares in a hypothetical currency basket (there is a code above the topic)
in terms of prices and fluctuations they are all about the same.
what currency parameter can be taken as "strength" ?
what is the strength of a currency ?
here is a convolution of days in the range 0..1, shares in a hypothetical currency basket (there is a code above the topic)
in terms of prices and fluctuations they are all about the same.
which currency parameter can be taken as "strength" ?
Are they time-synchronised?
are you time-synchronised?
yeah, of course.
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here is the same basket with Ln - so it is closer to the truth and shows better (the characteristic picture is the same, but more evenly distributed).
There is no such thing as currency strength
Very simple - the one that grows on all currency pairs in which it is present. If all pairs with EUR are growing for N period of time, the strength indicator is high, if they are falling - it is low.
This is a classic of strength indicators.
There is no need to involve some metaphysical essence, money volumes, etc. This is purely technical aspect, the position of current quotes relative to the initial ones.
There are plenty of such indicators.
The strength of currencies can be measured by different methods and correctly. Distance from the mean, angles of inclination, relationship to others, etc. You can do it all you want.)
only it will not be the strength of currency, but "distance from the average", "angles of inclination" (by the way, how is it?), "relations"...of course - room for creativity, but not strength.
Terminology issues are important, otherwise we'll get bogged down in different terms and stop understanding each other. Currency spin also sounds good :-) moderately mysterious.
By the way about terms - if the term"momentum" means a non-linear (stepwise, accelerated) increase/decrease in price,
then on USDJPY it is just about everything now...you can look for upward entries.
The strength of currencies can be measured by different methods and correctly. Distance from the mean, angles of inclination, relationship to others, etc. You can do what you want )
only it will not be the power of currency, but "distance from the average", "angles of inclination" (by the way, how is it?), "relations"...of course - room for creativity, but not power.
Terminology issues are important, otherwise we'll get bogged down in different terms and stop understanding each other. Currency spin also sounds good :-) moderately mysterious.
Read about angles in my articles there are many examples. The strength will be the aggregate value of these parameters extracted from different currency pairs.
And that means that the price will go where it goes - it is an axiom of trading, it is not necessary to sell the currency going up, even impossible, I would say
In the basket of currencies, if we talk about the automatic trading of the basket of currencies on 28 pairs -
currencies in each of 28 pairs - as many as two pieces, therefore - the algorithm, which makes a decision on the signal to open/close the sale or purchase of currency - must be against the movement of the general pool.
If there is a tendency - expansion (extension) more than 115%, then for those who are expanding - it is necessary to become on compression.
At the tendency of compression (compression) - less than 85%, it is necessary to become in the direction of expansion - on the expansion of the bubble.
But there are points of variable differential, it is in places where there is an upper and lower reversal, as well as on the equator. :-)
I would like to use a utility for MT4, which shows the width of the channel
in the presence of the CCFp indicator
from the post of this branch https://www.mql5.com/ru/forum/448777/page99#comment_50338194
I immediately understand the numerical value of the total width of the channel and what to do with the multi-currency basket.