D-52 | Forex Indicator Download - MT4/MT5 Resources | MT4/MT5 Download - MetaTrader 5 Resources

Inspired by people sharing systems, I'm going to introduce this system I call the D-52.

Nick, it will definitely accept your offer, please code this system. I'm happy to share it, especially if we get the right input to make this better.

Analysis <br> Currencies respond to risk aversion and risk appetite. Currencies gaining on risk aversion are the Japanese yen, the US dollar and the Swiss franc (in that order). Currencies with increased risk appetite include the Australian dollar, New Zealand dollar, euro and Canadian dollar.

We will be watching the relative strength of currencies. Take a look at the screenshot of the relative strength of major currencies at the bottom of the chart below (during the late 2008 credit crisis). Note that "safe haven" currencies strengthened, "risky" currencies strengthened, and first, riskier currencies strengthened again as risk appetite took over.

This concept can be applied to long term, medium term, short term, intraday and even news releases.

The currency that strengthened due to disgust was the Japanese Yen, while the currency that weakened was the Australian Dollar. I don't use NZD as it's a bit messy.

The AUDJPY being traded as a carry trade at this time happens to be the most volatile currency pair in this fundamental risk analysis. Generally speaking, most of the time the Australian dollar rises and the Japanese yen falls and vice versa. Please see attached image, February 2010 (1 hour frame). At the bottom you will again see indicators of the respective relative strength (orange = Australian dollar, maroon = Japanese yen). Notice that their movement is in opposite directions most of the time.

index

CC is the relative strength of a currency. Once you open the new chart AUDJPY 1 HR TF, you will add this indicator and edit it, setting all colors to None, except maroon (JPY) and dark orange (AUD). Draw a horizontal line at 0.000 for reference.

Please note that as a general rule, when both slopes change direction, i.e. the orange line starts to rise and the maroon line starts to fall, the currency AUDJPY rises and vice versa (when the AUD slope becomes negative and the JPY slope becomes positive, the currency pair falls)

Cycle Identifier Shows the high and low of this currency pair. When the price rises, it adds a green vertical line; when the price falls, it adds a red vertical line. Beware, it will be repainted.

Enter
Long position

There are 3 conditions that need to be met to enter a long position:

1. The Australian dollar is strengthening: the highest hourly orange line value is higher than the previous hour's value, forming a positive slope, or more simply, the orange (AUD) line is rising.
2. The Japanese Yen is losing strength: the highest hourly maroon line value is lower than the previous hour's value, forming a negative slope, or more simply, the maroon (yen) line is falling.
3. Buy Cycle: The Cycle Identifier indicator shows rising prices (last vertical line is green). This helps keep trades in line with the trend.

short position

There are 3 conditions that need to be met to enter a short position:

1. The AUD is losing strength: the highest hourly orange line has lower values ​​than the previous hour, forming a negative slope, or more simply, the orange (AUD) line is falling.
2. The Japanese Yen is strengthening: the highest hourly maroon line value is higher than the previous hour's value, forming a positive slope, or more simply, the maroon (yen) line is rising.
3. Sell ​​Cycle: The Cycle Identifier indicator shows rising prices (last vertical line is green). This helps keep trades in line with the trend.

Exit: TP 30 pips, SL: 30 or Trailing Stop=30.

I prefer to use it in conjunction with trends

More information, deals and pictures coming soon