Ivan Delgado is a decade-long Forex Trader. Feel free to follow Ivan on Youtube. Join thousands of traders who follow Ivan's insights to increase their profitability rate by learning the ins and outs of how to read and trade financial markets. Ivan has you covered with in-depth technical market analysis to help you turn the corner.
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To see an expanded version, right-click and select ‘open link in new tab‘. The indices show the performance of a currency vs a G8 FX basket.
The current dynamics in financial markets are characterized by risk aversion amid the ongoing and acute imbalance of sell-side flows in equities, commodities and currencies-linked to risk.
It’s been a real struggle to pinpoint any specific driver behind the moves we are seeing, which is why following price action, market structures/order flow and momentum is the key in this game.
As the chart above shows, the Yen, US Dollar and the Swissy are thriving this week while the Sterling and the commodity-associated currencies (AUD, NZD, CAD) are going through a rough patch.
By crosschecking time scales such as the daily and the 4h, or even better for shorter-term involvement by combining the 1h and 4h, we can observe plenty of trending instruments at the moment.
In the tables below, I represent via the structures and momentum the markets that portray the most imbalances in the combination of time horizons described above. The video that follows will break it down.
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In this video analysis I dissect the information above. Ultimately, it is the traders’ call, via a set of entries thoroughly backtested, to enter and manage a position, hence the video is intended as educational in nature and not financial advice.
If interested in the best ‘free of charge’ News Indicator that displays data on past and future news in the Forex market via MT4, check this YouTube video I produced. The indicator allows you to save time, avoid mistakes. It’s spot on!
Markets evolve in cycles followed by a period of distribution and/or accumulation. To understand the principles applied in the assessment of market structures, refer to this video. Fractal breakouts is at the epicenter to assist us in the analysis of chart structures.
In order to assess the market momentum of a particular asset, I’ve promoted for years the idea of using what I call the smart money tracker. The settings and the indicator can be obtained via our Discord room, where traders from all walks of life interact frequently. In this video I lay out the elements I look into to call trend directions.
The usefulness of the 100% projection resides in the symmetry and harmonic relationships of market cycles. By drawing a 100% projection, you can anticipate the area in the chart where some type of pause and potential reversals in price is likely to occur, due to 1. The side in control of the cycle takes profits 2. Counter-trend positions are added by contrarian players 3. These are price points where limit orders are set by market-makers. You can find out more by reading the tutorial on The Magical 100% Fibonacci Projection