A great session this morning with David and myself and we started with the EUR/AUD which has been rising strongly for the last few days, and one of the lessons from our private trading chat room where we support our forex education program members. This was an example of an annotated chart of the EUR/AUD posted in the forum in real time and explaining some of the key VPA lessons. One of the hardest things to do in trading is to stay in a trend once a position begins to develop into profit, particularly when the trend pauses and starts to pull back or reverse.
This happens in all timeframes and is when the market pauses and moves into congestion. So how do we know whether this is a true change in the primary trend, or simply a move into a secondary trend before re-establishing the primary trend once more, and this is where volume price analysis steps in. This is a classic example on the 5m chart for the EUR/AUD and explained in detail in the session.
In addition of course various other aspects then come into play including support and resistance and of course the Quantum Trading indicators with the Trend Monitor a key indicator here. The heavy selling of the Aussie is also in evidence on the currency array indicator on the NinjaTrader platform which has helped the EUR/AUD higher with strongly bearish sentiment to the Aussie overnight and into the European session. As we can see from the currency array indicator, negative sentiment is universal for the Aussie across the complex and confirming the flow of the market for this currency.
Finally we move back to the MT5 platform and look at the renko charts on MT5 which are a great example of the trends and trend monitor applied to a non time based chart. The renko indicator is unique in that standard and proprietary indicators can be applied to the chart and in addition, the indicator delivers the optimal setting for the brick size using ATR, so you are always trading in tune with the market pair.
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