I had recently found a really great currency strength indicator on trading view and I have now put this into a very simple trading strategy. I now want to share this with the community here, as a way of giving back but also to ask experienced traders for any feedback and comments on this trading approach. Over the past few years, I have been trying to find a way to trade strength versus weakness because I have always felt that because the currency strength meter is a fundamental indicator, it can help to give us a good indication about the future direction of price & trending moves. I have tried many times to use the CCFp currency strength indicator on MT4 (as well as other currency strength indicators offered on forex-station) but I was never really able to use these indicators to give me the result i was looking for. But now that I have found this new indicator on trading view, it seems like (finally) my strategy may be finally starting to come together.
So basically, the general idea here is to use the currency strength meter indicator on a 4 hour timeframe to help me identify pairs that are likely to trend nicely over the coming 24 - 48 - 72 hours (or more) .... I like to only spend very little time actually trading and looking for set ups because I have a busy life so after 20 minutes in the morning of strength weakness analysis + some basic technical analysis on curency pair charts, I am basically able to identify any potential set ups for the day. Then, I can open up a lower timeframe chart (e.g. 1 hour) on the pairs that I am interested in and just wait for a good counter-trend move to give me my entry point.
In other words, the currency strength meter helps me to identify high quality potential trending moves and the lower timeframe entry approach (waiting for a pullback) gives me a good entry point and with it, a good chance of trading success. And because we are using a MTF approach, the R:R will almost always be very beneficial. Stops & exits can be determined by each trader. Most importantly, for this to work, we need to be very careful and focused on choosing very high quality currency strength indicator set ups, which is why this newly discovered indicator is so important for me.
Here are some screenshots to show you where Im at with this .... any comments & feedback welcome
