How to Use FXrpm
Trading successfully requires a
simple yet effective system to enter and exit trades. I’d like to show you our
proprietary forex ranking method called
This is a simple-to-use indicator that looks at the seven most popular
cross-currencies and identifies the strongest and weakest pairs.
FXrpm is based upon a proprietary algorithm created by Cesar Alvarez, Director
of Research for Connors Research. This specialized method is
able to identify which currency pairs are seeing large inflows of money and
which pairs are seeing large outflows. A rating is then given to each
pair between 1-7, with 1 being the strongest and 7 being the weakest.
First we need to check the
page. As you can see, the strongest two pairs are in
green and the weakest two pairs are in
red. The three pairs in the middle are neutral.
You should be looking for long entries (buy setups) in the
two strongest pairs (green).
Conversely you should be looking for short entries (sell setups) in the two
weakest pairs (red).
For those of you who day trade the forex markets, we offer real-time
subscribers receive real-time updates, including a breakdown of the previous
48-hours in 5-minute increments so they can track exactly when the ratings
changed due to increased/decreased money flow. Here is a screen shot of the real-time
Let’s take a look at some actual trading examples:
On 1/17/06 USD/JPY had an FXrpm reading of 1 at 3:15 AM (small green arrow). As you
can see, this led to a very large rally.
On 1/20/06 USD/CAD
had an FXrpm reading
of 7 at 5:45 AM (small red arrow). In this
example, USD/CAD declined sharply for the next 2-hours.
Obviously every trade won’t work out
this well. However, as these two examples show, FXrpm
can help improve your trading. They should not be used exclusively as buy/sell
signals, but in conjunction with chart patterns, economic/fundamental news, etc.
Click here for more information on
FXrpm. To help you get started we have strategies you could employ in
addition to running free training classes every day that are designed to help
you understand FXrpm
and how to use them more effectively.
Click here to enter TheFxMarkets.com
for more in-depth Forex signals, timely Forex news, and Forex analysis.