At the start of the London forex trading session I explain how I use the currency trading dashboard for MT5 and the steps to follow in highlighting the opportunities ahead for the session. The currency dashboard comprises the currency strength indicator, the currency matrix, the currency array and finally the currency heatmap. All have a part to play and I start with the currency strength indicator which is our radar on the market and not hard to understand why.
1. It breaks the forex market down into the building blocks of the market – in other words the currencies themselves
2. This is always the place to start with any analysis of the FX market – the individual currencies – it reveals individual currency strength and weakness which you then rebuild into those pairs of interest for further analysis on the chart
3. It reveals when currencies are potentially over bought, or over sold, and also just as important those currencies moving strongly in a trend by the steepness of the lines.
4. It also reveals those currencies in congestion and not trending
5. Finally, not only does it reveal information to help you get in, either on a reversal or into a trend, but also when it is perhaps time to exit, once a currency has reached an extreme or perhaps has stopped to rise or fall so strongly. If your main focus is forex, then this is the one to start with (in my humble opinion) and is the one many of our customers also start with, and then add others in due course.