Currency matrix reveals sentiment for the British pound

Currency matrix reveals sentiment for the British pound

A terrific trading session as the London markets gets underway with heavy selling of the British pound across the complex and clearly signaled on the currency matrix indicator for MT5. https://youtu.be/ZHhXr93Aowo...
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The power of using multiple timeframes

The power of using multiple timeframes

Using multiple timeframes is one of the keys to trading success and in this morning's forex session we explain why, and using several of the GBP pairs. The reasons are many. First, using this approach reveals how price action in one timeframe, can reveal so much in another. Overlaying two candles is easy, but doing this with several is hard and almost impossible to do quickly. The Quantum Trading indicators for MT5 and NinjaTrader then help, with different signals in different timeframes. One may be signaling a change in trend which is developing, or perhaps a volatility signal is triggered. Finally, the price action itself reveals areas of support and resistance, of deep concentrations of volume which are not apparent on the timeframe of choice. All of these then provide the pieces of the jigsaw, which answer the simple question 'where is the market heading next?' And all underpinned of course by volume price analysis, which again offers powerful insights when applied...
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Excellent trades in the majors during the London FX session

Excellent trades in the majors during the London FX session

https://youtu.be/MIwsXPvTWJo Another excellent forex trading session for the European and London open with the pound and the euro in focus as the Far East and Asia session comes to a close. With the US dollar selling off this helped to propel many of the major currency pairs, and with strong euro buying on the faster timeframes, the euro dollar was certainly one which delivered, with the British pound also following suit and helped higher with the Barnier bounce. Once again the currency strength indicator highlights the pairs to consider with the euro rising strongly and counterbalanced with an equally strong move lower for the US dollar, with the British pound moving in to overbought on the faster timeframes, with the currency array then The key as always is in using multiple timeframes and blending time and non time based charts to deliver all the key pieces of the jigsaw. As always some great volume price analysis lessons in this session with the...
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GBP/JPY begins to turn on the daily chart

GBP/JPY begins to turn on the daily chart

The currency strength indicator on the daily timeframe has been signalling the UK pound as strongly overbought (yellow line) and the Japanese yen (magenta line) as oversold for some time, and today has finally seen the pair move lower following last week's extended congestion phase in the 151 area of the chart. This period of price action was preceded with the two bar reversal, sending an intial signal of weakness following the overreaction to hawkish comments from the BOE, with wide spread price action in the up move, not supported or validated with volume. |For any such move, volumes should have been dramatically higher, a clear sign of the lack of participation by the insiders, and signal of a trap being set. The trap has now been sprung and helped lower with weak UK economic data as the new month begins. As we can see from the currency strength indicator on the left we have some way to go, and moving to...
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Kiwi roaring higher on the currency strength indicator

Good to see the Kiwi on a bit of tear (the white line on the currency strength indicator), but comes as no surprise given how oversold it was at the end of last week. We've been tracking the NZD/USD which has had a huge move higher overnight & broken through the VPOC on the daily chart and is now touching the 100 ma. As we mentioned in yesterday's webinar although December price action can often seem erratic, it can nonetheless offer some great trading opportunities. And those of you who come along regularly to our webinars will know David & I are great fans of both the Kiwi and Aussie! You can register for the trading webinars here. The hourly currency strength indicator is showing some great potential set ups. Have a great trading day....
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Euro tumbles on Draghi comments

Mario Draghi's comments at the ECB conference regarding further stimulus has led to a dramatic fall in the euro across the board, and the eurodollar in particular. This weakness, however, was first signaled last week, and has been developing since the start of the trading week, and is a follow through from the two bar reversal posted on the daily chart. Today's price action on the eurodollar daily chart has resulted in a volatility candle being triggered given the extreme move, and if there is no follow through, then it should be surprise to see the price action simply retreat to within the spread of today's candle. In addition today's price move has seen the eurodollar move back through the volume point of control. ...
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Eurodollar continues to frustrate

Eurodollar continues to frustrate traders, and it's easy to see why. Since the failure to breach 1.1713 the pair has retreated back into the range of the VPOC (volume point of control) in the 1.1170 region where it continues to remain waterlogged. With end of month and end of quarter position squaring we will have to wait to see whether eurodollar can finally break away from this region. From a technical perspective the heavy selling of 6 weeks ago is self evident with the extreme volume and deep upper wick to the candle telling their own story. Since then the pivots have helped to define the floor and ceiling of the congestion zone, and with volume now building on the VPOC histogram any move away is likely to be extreme and accompanied with strong participation. The key level to any move to the downside is 1.1128 where strong support awaits.  ...
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Cable finally finds some support (& buyers!)

Following longest fall since 2008 no surprise to see British pound and the 6B move higher in this morning's trading, on the back of profit taking and closure of US and Canadian markets for the Labor Day holiday. From a VPA (volume price analysis) perspective the recent move lower has also been associated with falling volume suggesting the downwards pressure is, for now, running out of steam, with the platform of support at 1.5160 providing the reason for the pullback. Longer term, however, the outlook remains bearish for Cable, and should the 1.5160 price point fall to hold we may see a move towards 1.50 and even a possible re-test of the 1.46 region in due course.  ...
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Aussie dollar continues lower

As spot forex traders we sometimes forget the futures market can often help with market sentiment towards a currency and the daily chart for 6A, which is the contract for the Aussie dollar is particularly revealing. For the 6A,  it has been a return to business as usual over the last couple of weeks, since the breakaway from the VPOC at 0.7320 once again confirming the heavily bearish sentiment for the AUD. The initial break was on the 24th August where the wide spread down candle also triggered the volatility indicator, and as expected the price action moved back within the spread of the candle; a cynical move designed to trigger stops. Since then the candle has duly been confirmed with a rapid move through the low volume node on the VPOC indicator at 0.6980 with the pair now trading lower once again at 0.6934 in the London session. With the weight of transacted volume now sitting overhead in the 0.7320 price area and...
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Bearish sentiment continues for eurodollar

The release of slightly better than expected preliminary GDP and unemployment claims for the US did manage to add some bearish momentum to the eurodollar before it found support at 1.2525 from where it has been attempting to rally higher. It goes without saying this level needs to be taken out for the pair to continue lower. However, what is also significant on the 30 min and hourly chart is that this price point marks the low of the volatility candles which were triggered at the time of the news releases. A trigger of such a candle - in other words a candle which is outside the ATR for the instrument in question - often results in the price action simply retreating within the spread of the candle. At time of writing the pair is once again approaching the 1.1225 price point and if taken out should see the pair move to test the next level of support at 1.1213. The good...
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