I've been busy this week so my posting has been limited. I'm going to spit some stuff out now to give everyone an idea of what I've been doing.
It's been a pretty tough week of trading. I've been busy with my full-time job and have been trying to squeeze in trades here and there. I've been experimenting with some new setups recommended by John Carter, specifically the Squeeze and the Scalper High/Low. Unlike most people, I experiment sometimes in my real trading account.
My trading suffers when I don't have a clear setup plan as it should.
I've been doing a lot of speed reading and this week have been skimming John Carter's book, "Mastering the Trade." I'll have more comments later but there is a chapter that deals with formulating a written trading plan. This is a very beneficial chapter and stresses the need for all traders to have a written trading plan. I'll have to write mine and use the examples he gives.
I've been experimenting with the Relative Strength studies to formulate a currency "Power Ranking." Based on how a given currency performs against a basket of currencies, a relative strength figure is formulated and graphed to compare to all other currencies. So for example, a Relative Strength value will be determined for the GBP based on it's performance against the USD, EUR, CAD, AUD, NZD, CHF, and JPY. The formula is based on the relative strength index formula but in this case, the daily price changes are figured in for GBP/USD, GBP/EUR, GBP/CAD, GBP/AUD, GBP/NZD, GBP/CHF, and GBP/JPY. I've graphed this using a 9 day moving average and it looks like it may be useful in determining whether a trade would be going with or against the relative strength of a currency pair. I'm still working on this and will post the graphs when it's more complete.
I've been also experimenting with Pivot Points and plan on doing some extensive studies to use pivot points to create a custom indicator. I've subscribed to a NON-FREE End Of Day data provider so that I have accurate open, high, low, and close values for all currency pairs. I also needed to do so to be able for my scripts to automatically download the data periodically throughout the day via FTP. All pivot point calculations on this website as well as any other studies will be based on this new data.
