For euro dollar traders, today was a red letter day, with the pair delivering handsome returns following the ECB meeting and following conference as Draghi's works and proposals drove the euro lower with momentum, and helped by US dollar strength.
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What Is NFP and Why Is It Important?
NFP stands for Non-Farm Payrolls. It's one of the most influential economic reports in global markets. Released by the US Bureau of Labor Statistics on the first Friday of each month at 8:30 AM ET (13:30 GMT), it measures job creation in the US economy excluding farm workers, government employees, and a few other categories.
Over the last few days the US dollar has seen some much-needed upside momentum which in turn has driven the price of gold lower. So how much longer is the is the US dollar set to rise, or for gold to fall?
Key Components of the NFP Report
Headline Number: Net new jobs added (or lost) last month. Forecast vs actual drives reaction.
Unemployment Rate: Percentage of workforce unemployed.
Average Hourly Earnings: Wage growth—signals inflation pressure.
Revisions: Previous months often adjusted.
Strong NFP (beats forecast) = robust economy. Weak = slowdown concerns.
Why NFP Is So Important
NFP is a top-tier event for...
Some great reversal examples here with the currency strength indicator and currency matrix from Quantum Trading leading the way.
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The USD/CHF was the one watch in the trading session with two wonderful trading opportunities. First one to the short side and then one to the long side as the pair reversed strongly, driven initially by risk and then by stregth in the US dollar. And of course both clearly signalled on the currency strength indicator and the currency dashboard.
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In this morning's session, one of the key indicators we focused on was the Quantum Trading currency heatmap, and the many ways it can be used, whether for longer term traders, or intraday scalping and swing trading opportunities. The currency heatmap delivers all the information in a single screen, delivering changes in sentiment from the fastest to the slowest timeframes, whilst also offering a ranking ladder of currency pairs at the extremes and therefore likely to reverse in due course.
The currency heatmap is one of the four indicators on the currency dashboard, and this morning's forex trading session over delivered in every respect, as the currency strength indicator highlighted instantly those pairs offering trading opportunities, and those to avoid and leave alone. And from there, it's off to the charts, and then back to the currency matrix and the currency array to help confirm our trading decisions.
The Currency Heatmap Leads the Way
The currency heatmap is a trader's quick-scan superpower. It...
Another great forex session as the US markets get underway following the overnight news in the Far East and in particular with regard to the Aussie dollar. Once again some great examples of volume price analysis in action which then provides the foundation for all the other technical analysis on the chart and supported by the Quantum Trading indicators.
For forex traders the Quantum Trading currency dashboard is a great place to start with the currency strength indicator revealing individual strength and weakness across the eight major currencies. Then it’s on to the currency matrix and the currency array to consider the pairs and the complex of currencies, before moving finally to the currency heatmap.
The importance of using multiple timeframes is once again highlighted both on the charts themselves and also on the indicators, with key indicators such as the trend monitor and trend dots helping to keep you in a position during the inevitable pause points in any trend higher...
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The Volume Point of Control Confirmed It All!
The Volume Point of Control (VPOC) often confirms it all in trading sessions. It marks the price level with the highest traded volume. This acts as "fair value". Price gravitates here. Breaks or bounces reveal market intent.
Another session for day trading the US indices where patience and more patience was required, but as always it’s volume spread analysis coupled with the Quantum Trading tools and indicators which helps to keep us safe and stop us from jumping in and then regretting this decision. The volatility indicator was once again much in evidence as indeed was the accumulation and distribution indicator for NinjaTrader, helping to define those key levels of price support and resistance which are so important.
The volume point of control was also much in evidence with the primary US indices of the ES, the YM, and the NQ all rotating around key levels as price agreement was reached in the faster timeframes....
https://youtu.be/HRgkvTJjJRY
A Masterclass in Trading Forex Using the Quantum Trading Indicators and Volume Price Analysis
Trading forex successfully requires more than price charts. Volume price analysis (VPA) adds the missing piece. It combines price action with trading volume. This reveals true market intent. Quantum Trading indicators make VPA accessible and powerful on MT5 or NinjaTrader.
This morning's forex trading session was a masterclass in trading, combining every aspect in one powerful lesson. The GBP/JPY provided a perfect example, starting with the base methodology of volume price analysis as the move higher came to a temporary halt in the faster timeframes and duly reflected on across the currency dashboard in terms of the currency strength indicator, the currency matrix, the currency array and finally the currency heatmap.
Multiple Timeframes
Multiple timeframes are a key aspect coupled with support and resistance, the volume point of control and of course related markets in terms of risk sentiment. The currency indices too also play a pivotal role in identifying...
Another interesting session with the British pound once again in focus for several reasons.
First of course Brexit continues to dominate the news, and whenever an item of fundamental news is released it is the context of the bigger picture, and therefore has relatively little impact. Second, a volume price analysis anomaly was clearly in evidence on the daily chart for the GBP/AUD. Here we saw a wide spread up candle, yet the associated volume was not in agreement with such a strong move. Clearly the market makers were not participating in the move higher, with the pair duly rolling over a few days later to deliver a clear trading opportunity to the short side.
Finally we focused on the new release of retail sales to demonstrate volume price analysis in action on the 1 minute timeframe, and moreover the trap moves initiated on any such release, with the volatility indicator revealing its true power.
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Reversals Clearly Signalled on the Currency Strength Indicator & Multiple Timeframes
Reversals are often signalled clearly on the currency strength indicator. Extreme readings show overbought or oversold conditions. When combined with multiple timeframes, these signals become even stronger. This approach reduces false alarms.
As we prepare for yet another Brexit dominated day, the British pound was one of several currencies in focus in the London forex trading session this morning, along with the euro and the New Zealand dollar.
For the euro, it was the early move higher which caught the eye with the currency rising strongly in the faster timeframes and on the currency strength indicator, with the Canadian dollar moving in the opposite direction with equal speed and creating a nice trend. Then as London opened, volatility became the order of the day with a potential reversal setting up.
This was also the case with the New Zealand dollar which had been rising strongly and reached an overbought condition, clearly signalled on...
