None of us are patient, yet when it comes to congestion phases this is where patience really does pay off, as these are the price regions where trends are created and born. And remember Wyckoff's second law of cause and effect, the longer the cause the greater will be the effect. In other words this brings time into the equation.
https://youtu.be/J8UM_9HCQvA...
This morning's price action on the British pound was classic, following the release of the UK news and statement from the BOE. The primary pair for trading is of course cable, but the price action here was extreme, whipsawing in a wide range and making it almost impossible to trade. So what's the answer? In short, look to other currency pairs and in particular the cross currency pairs. In this case it was the GBP/AUD which delivered tradable opportunities which the GBP/USD did not. So remember, when you see volatility in the forex markets, look to the cross pairs for more measured opportunities.
https://youtu.be/bv6Y5Sylt7A...
The agreement between EU member states on the bailout package would normally be perceived as good news by many forex traders, yet the euro has fallen. Here's why and it's all to do with the bond markets and in particular the spreads between Italy and Germany which hold the long term key for the direction of the single currency.
https://youtu.be/Uk2MxuLRCjI...
https://www.youtube.com/watch?v=8305A3WaFUE
Using volume price analysis and the Quantum indicators on the 5 min gold for a trade out of congestion which highlights the importance of support and resistance and the volume point of control....
Stop loss placement is an art not a science, but when trading a breakout from congestion these levels are often very clearly defined for you. Discover why in this video and learn where to place them using the CME currency futures on NinjaTrader
https://youtu.be/1y-ViuqFmPM...
If you're looking for a volatile currency pair to trade look no further than the GBP/JPY as I take a look at where it might be heading next.
https://youtu.be/4jPioInlNyg...
The VIX index is one of the most powerful indicators, revealing as it does, fear and greed in equal measure and based on the balance of call and put options, which makes it a key chart for all index traders.
https://youtu.be/uTHIgtFrx0g...
When currencies are moving in the same direction expect congestion as there is no force driving the two apart. When there is divergence, a trend develops and all is revealed on the currency strength indicator, whether for NinjaTrader, MT4, MT5 or TradingView.
https://youtu.be/-5ubJ29_EsQ
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