Forex Technical Analysis Tools
In this video, David & I look at the currencies ahead of tomorrow’s Non-Farm Payroll release, particularly the USD and its relationship with bonds and stocks. We also cover the importance of monthly charts and how the volatility indicator can provide insight into the likely price action the following month. We also explain where traders can find volatility metrics for the pairs.
Forex technical analysis tools help traders make sense of complex markets. They reveal trends, sentiment, and potential moves. Volume price analysis (VPA) forms the foundation. Quantum Trading indicators enhance this on platforms like MT5, NinjaTrader, and TradingView.
Essential Tools for Forex Analysis
The currency strength indicator ranks currencies by performance. It spots leaders and laggards quickly. The currency matrix shows relational dynamics across pairs. Heatmap colors intensity for fast reads. These tools simplify pair selection and sentiment gauging.
Volatility Indicator and Monthly Charts
The volatility indicator provides insight into price action. It highlights expansion or contraction phases. Monthly charts offer big-picture context. They show long-term trends. Combine with VPA—high volume on moves confirms conviction.
Intermarket Relationships: USD, Bonds, and Stocks
USD strength often ties to bonds and stocks. Rising yields support dollar. Equity rallies signal risk-on. Volume price analysis reveals these links. Quantum tools track relational flows clearly.
Practical Application Ahead of Events
Before releases like Non-Farm Payroll, scan with Quantum indicators. Focus on USD extremes. VPA confirms reactions—high volume post-news validates direction. Anna Coulling’s approach uses these tools for disciplined trading.
Find volatility metrics in platform data or Quantum indicators. They guide expected ranges.
Master forex with the right tools. Quantum indicators and VPA turn analysis into confident decisions. Apply them across sessions for consistent results.
Non-Farm Payroll (NFP) Trading Strategies
The US Non-Farm Payrolls report is one of the most impactful economic releases. Released the first Friday of each month by the Bureau of Labor Statistics, it shows job additions (or losses) outside farming. Consensus forecasts guide expectations. A beat (stronger jobs) boosts USD and risk assets. A miss weakens them. Volatility spikes—perfect for short-term traders.
NFP moves forex (USD pairs), indices (emini futures like /ES), gold, and bonds. As of January 2026, markets anticipate steady ~150-200k jobs with unemployment ~4.1-4.2%.
Key Risks and Why Strategies Matter
NFP often causes whipsaws—initial spike, then reversal. Volume price analysis (VPA) is crucial—wait for high volume confirmation post-release to avoid traps.
1. Post-Release Breakout Strategy (Most Common)
- Wait for the release (10:30 AM GMT / 8:30 AM ET).
- Initial reaction: Price spikes on surprise.
- Confirm with VPA: High volume in direction = conviction (enter).
- Low volume spike = potential trap (fade or stay out).
- Example: Strong NFP → USD strength. High volume rally in USD/JPY = long.
- Quantum Tools: Currency Strength Indicator ranks USD instantly. Trend Monitor aligns direction.
2. Straddle/Strangle (Pre-Release Volatility Play)
- Place pending orders: Buy stop above resistance, sell stop below support.
- Capture breakout whichever way.
- VPA Filter: Only keep trade if high volume confirms direction.
- Risk: Whipsaw hits both stops. Use wide stops or cancel one side post-release.
3. Fade the Initial Move (Advanced)
- Initial spike often overreacts.
- Fade if low volume (no conviction).
- Example: Weak NFP → USD sells off sharply on low volume → buy USD pairs expecting reversal.
- Quantum Tip: Currency Strength shows if USD weakness is extreme (overbought/oversold).
4. Multi-Asset Approach
- USD beat → Long USD pairs, short gold.
- USD miss → Short USD, long gold/emini.
- VPA across assets: High volume correlation confirms theme.
Risk Management Essentials
- Small positions—NFP volatility is extreme.
- Stops beyond recent swings.
- No pre-news positioning unless experienced.
- Wait 5-15 minutes post-release for volume clarity.
Quantum Tools for NFP Trading
- Currency Strength Indicator: Ranks USD instantly post-release.
- Matrix/Heatmap: Shows relational impacts (e.g., USD vs commodity currencies).
- Trend Monitor: Aligns post-news direction.
- VPOC: Key levels for stops/targets.
Anna Coulling’s VPA methodology with Quantum tools turns NFP chaos into disciplined trades. Focus on volume confirmation—avoid the initial frenzy.
NFP rewards preparation and patience. Test strategies on historical releases. Trade the reaction, not the forecast!
By Anna Coulling