As the London forex session gets underway, we start with several of the forex specific indicators, such as the currency strength indicator, the currency array indicator forand the currency matrix. In this video we are using the MT5 trading platform, and then move on to consider some of the basic principles of volume price analysis applied to the forex markets and using Wyckoff's three laws.
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More terrific trading opportunities in the London forex session, from the monthly chart to the minute, and using the Quantum Trading tools and indicators with volume price analysis.
https://youtu.be/3WO3vlkg8xY...
The starting point for finding the best trades for forex starts with the currency strength indicator, and from there moving on to the currency matrix. Isolating out the currencies and using the bookmark function then provides an excellent focus.
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A terrific trading session as the London markets gets underway with heavy selling of the British pound across the complex and clearly signaled on the currency matrix indicator for MT5.
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Thanks to everyone for coming along to our forex webinar for the London session earlier, where our focus was the euro & eurodollar, particularly with some pretty heavy option expiry strike prices due up later today. Also in view was the kiwi which was in a similar state to the British pound ahead of Chancellor Osborne's autumn statement. In other words totally beaten down across multiple time frames, and despite various efforts to rise kept falling back into oversold territory. Interesting to see the Kiwi (white line) has now moved off the floor on the 30 & 60 min CSI.
Also note the USD (the red line) is very overbought, so we need to keep an eye on what it is likely to do the remainder of the day. What happens in our next webinar for the US session is difficult to tell given it was Thanksgiving yesterday, and today is Black Friday. Appreciate it's not a national holiday, but given many in the...
With year end on the horizon, now perhaps is a good time to see what the Swiss franc has been up in an effort to determine what the currency is likely to be doing in the run up to the 15th January 2015 anniversary when the SNB (Swiss National Bank) removed the floor of support for the currency, unleashing a wave of volatility on the markets not seen since the dark days of the financial crisis back in 2008.
From a technical standpoint the Swiss Franc is now heavily oversold on the hourly and daily currency strength indicator, against most of its counterparts, with the exception of the where the picture is very different, with the pair firmly range bound albeit well below the 1.20 price point, which triggered the January volatility.
With regard to the other CHF pairs, and in particular the USD/CHF the current move higher that started in mid October is now reaching an exhaustion point, as the pair...
Of the three commodity dollars, namely the Aussie, Kiwi and Loonie it is perhaps the Aussie which finally appears to be showing signs of a potential reversal from its oversold state on the slower time frames of our currency strength indicatort (the blue line). And of the Aussie pairs it is perhaps the AUD/USD and AUD/CAD which appear the most interesting.
Starting with the AUD/USD it was the failure in May to break through the resistance at 0.8160 which was the start of the its downards descent which saw the pair finally find some support at 0.6906 on the Friday before the Labor Day Holiday in the US. And whilst this level was tested once again last Monday, since then the AUD/USD has managed to claw its way back to 0.7138 at time of writing.
Such positive sentiment and similar price action can also be found on the daily chart of the AUD/CAD where the test of support at 0.9149 on the...
In the current media speculation surrounding the impact of the PBOC decision to revalue/devalue the yuan, particularly on how this may (or may not) affect the FED's decision about raising interest rates, it is easy to forget two things. First, the fundamental news releases which too will add their own layer of volatility, and second Greece, which today is back centre stage as the Greek parliament meets today in emergency session to ratify the latest bail out deal.
Today's key releases are primarily in the US with retail sales, core retail sales and the unemployment claims due. And of these it is the retail sales numbers which the market will be focused on primarily because they may give some guidance as to the FED's thinking about interest rates.
Meantime in this morning's trading the USD has been broadly higher against all the major currencies except the British pound, but with the US session due to start shortly, Cable too may simply fall...
The overnight fall in the Nikkei 225 of 1.76% has resulted in an impressive two bar reversal (aka a shooting star) on the daily chart for the USD/JPY - so no surprise to see the pair move lower in this morning's trading session.
What is perhaps more significant is this move in the JPY is not consistent across the JPY pairs we follow on our matrix, and in particular the EUR/JPY and GBP/JPY. The latter is a pair I am looking to short on a longer term basis, but patience is required not least because I want to see the JPY begin to move away from the bottom (oversold) on the currency strength indicator. This also highlights a key aspect of forex trading, namely individual currencies can stay overbought or oversold for much longer than we expect. Much, of course, will depend on risk sentiment, and in particular whether the current downwards trend in equities continues, and if so then we...
