The three indices we often forget as forex traders!

In this video we explain the importance of understanding where the three major currencies are heading, whether intraday or on a longer term basis.

The three main currencies are of course the US dollar, the Japanese yen and the single currency of the euro. The Quantum Trading suite of tools and indicators delivers an index for all three, and using the tab feature of NinjaTrader 8 offers a compact and efficient way to monitor these key currencies in all timeframes, whilst optimising space on the screen. This allows you as a forex trader to track these currencies, and from there have a much clearer view of where each is heading which will then be reflected in the major currency complex or the cross currency complex accordingly.

The US dollar, the Japanese yen and the euro are three currencies which drive the forex market universally, and having this clear view is paramount to then understanding where the currency pairs themselves are heading individually.

Volatility indicator detects and protects

A great example of the Quantum volatility indicator in action yesterday in the eur/aud currency pair. The indicator was triggered on unexpected comments from ECB member Nowotny – noted hawk – who suggested the ECB’s current program of QE was likely to come to an end sooner rather than later. Ahead of these comments eur/aud was looking to continue its bearish tone.

However, on the comments hitting the newswires sentiment in the euro changed and euro pairs soared as volatility hit the market. This indicator triggers in real time so, as traders, we know instantly something is afoot.

What then generally happens is that on completion of the volatility candle, price action retraces to within the spread of the candle as the sting is taken out of the move. But the subsequent candle is also interesting as it is hanging man on high volume, which is almost always a precursor to a reversal in trend and sentiment. And this is exactly what happened as the ECB took the unusual step of rebutting Nowotny’s remarks.

How the MT5 currency matrix reveals market sentiment

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.

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Using the MT5 CSI currency strength indicator for scalping

In this short video we explain the power of using the Quantum Trading currency strength indicator in multiple timeframes on the MT5 platform. And in this example we are using the MT5 platform once again which provides a much wider choice of timeframes using both the standard and custom options. Here we have the currency strength indicator applied to the 5 minute the 10 minute and the 15 minute timeframes, and focused on the EUR/CAD currency pair.

Here we can see the trend is already underway and confirmed by the currency strength indicator with the euro currency falling strongly and the Canadian dollar rising just as strongly. This is where we see the strongest trends develop and the steepness of the line for each currency gives us clear and strong signals of the strength of the momentum for this pair,  with strength in one and weakness in the other, providing the prefect combination for a strong trend in the pair.

The trend here begins in the fastest timeframe and then develops across into the slower timeframes, and so helps to keep us in the trend to maximise any profit potential. When the currencies cross, then a strong trend is underway, signaling momentum and further development of the trend.

MT5 currency strength indicator in action

In this video we show the Quantum Trading MT5 currency strength indicator in action, and focus in particular on the Japanese yen. This has been the ‘ go to’ currency for the last few weeks as risk on and risk off sentiment has ebbed and flowed intraday, and reflected particularly in the yen cross pairs.

In this example we have the 15 minute chart for the NZD/JPY with the currency strength indicator giving us all the clues and signals for this strong trend higher, with the New Zealand dollar being bought strongly, and the Japanese yen being sold equally strongly. The currency strength indicator is now available for both MT4 and MT5 platforms. You can find all the details by clicking the following link – Currency Strength Indicator MT4/MT5

Heatmap highlights extent of overbought & oversold on Aussie & CAD

At the start of a new month and quarter it’s always useful to consider which currencies and currency pairs are at extremes, because if there is one thing we can be sure of is that at some point sentiment for an individual currency and currency pair will change. And this is where the Quantum heatmap indicator can help as it not only ranks our 28 currency pairs, but also does so across multiple time frames giving us a snapshot of what is happening on 252 charts.

And as we can see it is Aussie and Cad that have been heavily sold, particularly against the Yen and the British pound. The daily chart of the aud/jpy now shows the pair attempting to base in the 80.50 region, which also coincides with our S3 Camarilla level, and today’s bullish price action, on reasonable volume, has taken the pair to the underside of the first major resistance at 82, and assuming risk off sentiment manages to hold (& Donald stays away from any comments about Amazon) any move through here would see aud/jpy try to regain 82.33 and thereafter 82.74. A failure would see the pair back to test the relatively strong support at 80.85.

By Anna Coulling

Currency array highlights trend & momentum

Identifying trend strength and momentum is not easy, and trading strength and momentum is even more difficult, which is why we developed the Quantum currency array indicator. With this single elegant indicator not only can we see which currency pairs are trending strongly, but also the momentum of this trend, as well as see those pairs that are in congestion. And finally we can quickly identify those pairs that are potentially approaching an overbought or oversold sold.

The MT5 version of the indicator works on both standard and custom time frames, which means we spot signals much earlier, and in addition we have also built into the indicator a bookmark feature which gives us the option to bookmark a currency pair of interest making it easier and quicker to identify on the ranking ladder.

By Anna Coulling

Make volatility your friend

As traders volatility can be your greatest enemy, but with the Quantum volatility indicator you can now not only see it trigger in real time, but also have the confidence to take cool headed trading decision. The indicator works on all time frames and across all markets, and in this video you see on the MT5 platform.

By Anna Coulling



Euro index for MT5

Monthly chart for euro index for the MT5 platform highlighting no strong direction for the single currency with this month’s candle now trading within the spread of February’s long legged doji.