Ahead of the US election, all eyes are on the US dollar. In this video from the London forex trading session we show you how to use the currency matrix to focus on the US dollar for spot and currency futures
https://youtu.be/fwHmbnfqqDI...
A Classic Trap Move on the GBP/AUD on the 10 Minute Chart – Hard to Miss This One!!
GBP/AUD delivered a classic trap move on the 10-minute chart. Price spiked sharply. Traders chased the breakout. But it was a fakeout. Volume price analysis (VPA) made it hard to miss.
There are always traps being laid for the unwary trader, but for students of the volume price methodology these are always very easy to see, and in the London forex session we highlight one on the GBP/AUD on the 10-minute chart which was hard to miss!!A classic trap move on low volume with a nice wide spread up candle....then congestion and the reversal follow. Price action traders would have followed this one higher. Volume price analysis traders would have closed out, and then joined any reversal lower.
Spotting the Trap with VPA
The spike looked bullish at first. Price broke resistance fast. Many bought the move. But volume was low—no conviction. This screamed trap. Quantum...
In this segment from the forex trading session this morning we focus on the currency majors and explain how to use the spot markets and futures markets to identify flows, and also reveal different relationships using volume price analysis. And late in the session we pick up a nice reversal trade which is signalled with strong buying volume and the currency which is heavily oversold on the currency strength indicator.
https://youtu.be/NrF8j0XGJjg...
Assessing Risk and Reward the Correct Way!
Many traders insist on fixed risk-reward ratios like 2:1 or 3:1. This seems simple. But it's often nonsense. Rigid rules ignore market context. Volume price analysis (VPA) offers a better way. Let the chart decide risk and reward naturally.
Many traders talk of risk and reward and the fact they do not take a trade unless there is a 3 to 1 risk reward ratio or 2 to 1 - but how do they know, and does the market actually care what they need or want! There is a simple and logical way to assess the risk on each trade, and any potential reward by studying the chart and from there deciding whether to take the trade or not. The chart will reveal in multiple timeframes what is ahead and therefore likely to offer support or resistance, or where the market is likely to congest. Then and only then can you make a decision based...
How to Start Your Forex Trading Day on MT5
Starting your forex trading day on MT5 sets the tone for success. A consistent routine builds discipline. Begin with preparation. Review overnight news and economic calendar. This avoids surprises in major pairs.
At the start of the London forex trading session I explain how I use the currency trading dashboard for MT5 and the steps to follow in highlighting the opportunities ahead for the session. The currency dashboard comprises the currency strength indicator, the currency matrix, the currency array and finally the currency heatmap. All have a part to play and I start with the currency strength indicator which is our radar on the market and not hard to understand why.
1. It breaks the forex market down into the building blocks of the market – in other words the currencies themselves
2. This is always the place to start with any analysis of the FX market – the individual currencies – it reveals individual...
Forex trading success is all about choosing the right currency pair and the starting point is the currency strength indicator. Here strength and weakness in the individual currencies is revealed simply and clearly which is why we call it out sonar on the market. Like the device trawlers use to locate shoals of fish, so we use it to identify reversals and strong trends in the building blocks of the markets - the currencies themselves. However, when a currency is rising or falling strongly, this does not mean it is doing this across the complex, and so we are constantly looking for the a strong move for the counter currency in the opposite direction. So if the currency is rising strongly, we want to match it with one which is falling equally strongly. Why? Because this will deliver the greatest momentum in the trend.
https://youtu.be/rS6hgiODSCA...
https://www.youtube.com/watch?v=4wKSsbnqRkg
The Quantum currency matrix not only ranks currency pairs according to their strength and weakness and but also displays the rotation and flow into the pairs. The video explains using the majors as an example....
Here's how to trade the trend in the London forex session with the GBP/CHF delivering an excellent trend on the faster timeframes.
https://youtu.be/tjKVxrVOtzo...
https://www.youtube.com/watch?v=J_bLa9Yue38&t=508s
Trend Trading Using a Currency Strength Meter
Trend trading becomes easier with a currency strength meter. It ranks currencies by performance. Strong currencies lead trends. Weak ones lag behind. This reveals clear relational opportunities.
Combining with Volume Price Analysis
Volume price analysis (VPA) supercharges the meter. Focus on extreme rankings for sustained trends. High volume on moves confirms conviction. Quantum Trading's meter includes alerts for timely entries on MT4/MT5 or NinjaTrader.
Benefits and Practical Tips
This approach simplifies trend identification. Pair strongest with weakest currencies. Avoid middling pairs in choppy markets. Anna Coulling's methodology uses the meter to ride trends longer with confidence.
Master trend trading with this tool. Quantum indicators make spotting and staying in moves straightforward....
