4. Major Currencies – USD United States Dollar
Issuer : United States Of America
Currency ; US DOllar ( USD, Greenback,Buck)
Most traded in : EURUSD,GBPUSD,USDJPY,USDCAD,USDCHF et.
Central Bank : U.S Federal Reserve System – The Fed
Chief Monetary Policy Maker :
Governor Ben Bernanke
( Formerly Alan Greenspan)
Alan Greenspan retired January 2006
The Fed is the most influential central bank in the world
5. Major Currencies – JPY Japanese YEN
Issuer : Japan
Currency ; Japanese Yen (JPY)
Most traded in : EURJPY,GBPJPY,USDJPY,
CADJPY,CHFJPY,AUDJPY,NZDJPY etc.
Central Bank : Bank Of Japan ( BOJ)
Central Bank Governor :
Toshihiko Fukui
6. Major Currencies – EUR Euro
Issuer : European Union
Currency ; Euro (Eur )
Most traded in : EURJPY,EUROUSD,
EUROCAD,EUROCHF,EUROAUD etc.
Central Bank : European Central Bank ( ECB)
Central Bank Governor:
Jean Cloud Trichet
7. Major Currencies – GBP British Pound
Issuer : United Kingdom
Currency ; British Pound ( GBP, Cable, Sterling)
Most traded in : GBPUSD,EUROGBP,
GBPJPY,GBPCHF etc.
Central Bank : The Bank Of England (BOE)
Chief Monetary Policy Maker :
Govenor Meryvn Allister King
8. Major Currencies – CAD Canadian Dollar
Issuer : CANADA
Currency ; CAD DOllar ( CAD, Loonie)
Most traded in : USDCAD,.
Central Bank : Bank Of Canada ( BOC)
Chief Monetary Policy Maker :
Governor David Dodge
9. Major Currencies – AUD Australian DOllar
Issuer : Australia
Currency ; AUD DOllar ( AUD, aussie)
Most traded in : AUDUSD,EUROAUD,AUDJPY.
Central Bank :
The Reserve Bank Of Australia (RBA)
Central Bank Governor :
Governor Ian MacFarlane
10. Major Currencies – CHF Swiss Franc
Issuer : Switzerland
Currency ; Swiss Franc ( CHF, swissy )
Most traded in : EURCHF,GBPCHF,USDCHF
CHFJPY etc.
Central Bank : Swiss National Bank ( SNB)
Central Bank Governor :
Jean – Pierre Roth
( Chairman of the Governing Board )
11. Major Currencies – NZD New Zealand Dollar
Issuer : New Zealand
Currency ; New Zealand Dollar (NZD)
Most traded in : NZDUSD,NZDJPY.
Central Bank :
Reserve Bank of New Zealand ( RBNZ)
Central Bank Governor :
Alan Bollard
12. Functions
To measure the STRENGTH of the CURRENCY
We could not tell whether or not the currency is
strong or weak just by looking at 1 chart
So, we have to look at all charts (pairs) that related
to the currency
This is very important to be used in all strategies
Just by looking at all charts, we still do not know
whether or not the currency is strong or weak
because the chart indicates a PAIR, not a
CURRENCY, so the CSI is created to measure the
Strength of the currency
The Logic of CSI
13. For Example
If we want to BUY eur/usd, we have to make sure
1. EUR is Strong and the USD is not strong (weak
or neutral)
or
2. EUR is neutral whereby the USD is weak
If we want to SELL eur/usd, we have to make sure
1. EUR is not strong (weak or neutral) and USD is
strong
or
2. EUR is not strong (weak or neutral) and USD is
neutral
14. EUR/USD
EUR strong, USD weak – Perfect Buy
EUR strong, USD neutral – Buy
EUR weak, USD strong – Perfect Sell
EUR neutral, USD strong – Sell
EUR strong, USD strong – No Trade
EUR weak, USD weak – No Trade
This rule also applies for all currencies/pairs
15. How To Use
1. Bring up all 1 hour charts related to the currency
indicates based on the CSI indicator
2. Apply 60SMA to all the charts
3. If the currency is stronger against the other currency
that refer to, the currency will get the particular point
4. Sum all the point, and you will get the score
5. If the score is
0-3 = weak
4-6 = neutral
7-10 = strong
6. Remember to get the score for both currencies, such
as EUR/USD, must calculate both, and refer to the
RULE
16. The Rule
EUR strong, USD weak – Perfect Buy
EUR strong, USD neutral – Buy
EUR weak, USD strong – Perfect Sell
EUR neutral, USD strong – Sell
EUR strong, USD strong – No Trade
EUR weak, USD weak – No Trade
EUR neutral, USD neutral – No Trade
This rule also applies for all currencies/pairs
19. Words of Advice
Be very careful when calculating the score, the
currency gets the point if it is stronger does not
always mean it must be above the 60SMA or if
it weak, it does not always mean it must be
below the 60SMA
This apply for if the currency is at the back of
the pair
For example,
USD/CAD CAD stronger against USD if it is
BELOW the 60SMA
24. That’s all for today
See you in next conference
Next conference will be the next Saturday
Topic to be discovered about Bar Reversal &
Probably Scalpline Strategy
(Suitable for Pair E/J and GU)
All The Best To You & Happy Trading
