Ok, let’s roll our sleeves…
1. Naked chart is not the way to go. You already admitted that you use some sort of Bull/Bear in some trials – and that’s NOT naked chart.
2. “Currency Strength” indicator should have PREDICTIVE nature (at least on smaller TF’s).
3. Based on #2 above – it can’t use standard MA’s, CCI, WPR, etc. – because (lagging, lagging, lagging…)
4. “True” currency strength should manifest itself on other, related, currency pairs.
5. In order to avoid the inter-relations effect among currencies we need some EXTERNAL “anchoring” (KIAD’s terminlogy – already discussed here) as reference.
6. Question: Does individual currency “market share” factor should be used? is it logical?
7. Question: When comparing currency pairs, should we use currency pairs “crosses? my experience shows that they introduce “noise”, but I’m open to others logic.
8. Question: How to deal with “Rate of Change”?
9. Question: How to deal/incorporate with the attached chart?
10. Ultimate goal should be a SCANNER, suggesting best pairs to trade, direction, and with timestamp of entry.
Any more ideas?
G.
