In this morning's forex session we looked at some of the interesting setups now on the horizon using the longer term perspective of the currency heatmap. The currency heatmap can be viewed in much the same way as the currency strength indicator. For the heatmap, we consider pairs rather than currencies, and a great way to use the indicator is to look for the extremes as potential reversals, and with the yen now weakening following the flash crash, and coupled with a shift in risk sentiment, these now look good prospects for the longer term. At the other end of the ladder, we have several euro cross pairs to consider. And all, of course, confirmed with volume price analysis and the Quantum Trading tools and indicators for MT4/5 and NinjaTrader - and more recently TradingView.
https://youtu.be/cfzpUT701Dk...
A great forex session this morning in the live webinar with David and myself, and one where we were spoilt for choice in terms of trading lessons and also trading opportunities. The pairs we chose were the GBP/AUD on the MT5 platform and the AUD/JPY on the NinjaTrader platform, before moving to look at the GBP/JPY later in the webinar and of course all analysed through the prism of volume price analysis and the Quantum Trading tools and indicators. For the GBP/AUD is was a case of further heavy selling in this pair and reflected in the time based charts supported by the MT5 renko chart. As always the currency strength indicator signalled the strength of the move and again using multiple timeframes giving the clear signals we need to select the currency or currency pair for further analysis. One of the keys to success is in applying volume price analysis which then helps to identify whether a reversal is...
All traders understand the significance of price levels, and use any number of methods of trying to establish which are important and which to target not only as potential price objectives, but also try to try and establish where price is likely to stall.
And what makes a price level significant is whether it is reflected across different time frames, and we have a great example from the daily and monthly charts for gold.
On the daily chart we've seen some reasonable buying coming in at 1235, and perhaps even the start of a double bottom with the Camarilla marking the upside levels that need to be breached. But the monthly is looking bearish as the gold price is trying to break away from VPOC in the 1260 region, but what is significant this is also the R4 level on the daily and which is where only a break and hold here would signal the resumption of bullish sentiment.
However, short term the...
https://youtu.be/tYxQgRGHcjI
In this video which comes towards the end of the London session and the start of the US session, we highlight how the currency matrix helps to identify the universal sentiment to the Canadian dollar. In this example the USD dollar has been strongly bullish before reversing to bearish and coupled with very strong buying of the Canadian dollar which is shown on the currency strength indicator.
On the currency matrix we then isolate our the Canadian dollar which confirms that sentiment across the CAD complex is universal. In other words, the CAD is being bought against all other primary currencies and as revealed on the 10 minute ranking ladder with the 20 minute timeframe starting to develop in the same way.
Discover more about the Quantum Trading indicators at https://www.quantumtrading.com...
