A great forex session this morning in the live webinar with David and myself, and one where we were spoilt for choice in terms of trading lessons and also trading opportunities. The pairs we chose were the GBP/AUD on the MT5 platform and the AUD/JPY on the NinjaTrader platform, before moving to look at the GBP/JPY later in the webinar and of course all analysed through the prism of volume price analysis and the Quantum Trading tools and indicators. For the GBP/AUD is was a case of further heavy selling in this pair and reflected in the time based charts supported by the MT5 renko chart. As always the currency strength indicator signalled the strength of the move and again using multiple timeframes giving the clear signals we need to select the currency or currency pair for further analysis. One of the keys to success is in applying volume price analysis which then helps to identify whether a reversal is a primary to primary reversal, or simply a secondary reversal against the primary trend which is then re-established. This is the point many traders exit a strong position as the reversal begins, and so give up future profits as a result. This is one of the reasons many traders struggle to succeed as this undermines the maths of trading returns, which is all about a larger number of small losses, outweighed by a smaller number of larger wins.
As the London open then approaches we saw the clear signals of a potential reversal ahead and very clearly seen on the GBP/JPY on the NinjaTrader platform. Indeed the messages here could not be clearer with both volatility and volume confirming the potential for a reversals, with the Yen index also confirming along with the currency array and the currency strength indicator. So in summary, a great session with many different lessons for forex traders.