Let’s get started…
- Performace of forex indices
- Trading via forex indices
- Trading via trap patterns
- Hot trade of the day (video)
- Economic indicators
- Educational material
Performance of forex indices
The behavior of G8 forex indices is never free of ambiguity and uncertainty. If caught up in short-term moves alone, it tends to be random in nature. Analysis of the contextual setting and information advantage allows us to make more sense of the flows.
Even as I dissect the dynamics from an overall performance standpoint this week, it’s really hard to find well-defined trends. The currency market continues to be torn between the optimism of a vaccine and further lockdowns amid the resurgence of COVID-19 cases, hospitalisations and deaths.
The fact that we ended up with both the Kiwi and the Japanese Yen as the top performing currencies on Wednesday this week, reflected how entangled currencies performance can be. These movements somehow defy the logic by which markets favour one currency over another.
I want to highlight the last London session, where we did have a solid trend that picked up a steady momentum in the Euro. The currency saw the bulk of its losses ahead of the London fix only to peter out afterwards as volumes collapsed (this is usually the case).
Pay attention to today’s hot trade, where the Euro was an exception. It was cross checked against the Kiwi as a strong trend developed.
Trading via Forex indices
I recognised that this entry was too aggressive. I didn’t take it. However, I did identify it via my proprietary forex indices template. I am referring to a short in the EUR/NZD right off the gates in the London session that has gone for over 100 pips. When an entry occurs without having tested the 13ema previously I am much more reserved on pulling the trigger. That’s exactly what happened in this short trade. It showed the type of trend one can catch when matching the weakest (EUR) vs the strongest (NZD).
Trading via trap patterns
Even if the market fails to make up its mind in the near term, it doesn’t mean we don’t have congruence of momentum and structures to step back all the way to the 4h and the daily timeframes. In fact, we have more than 10 markets flashing either bullish or bearish concordance as per the directional bias most dominant. These are the markets where I tend to place most of my focus to find TT setups.
Hot trade of the day
In this section, I pick a market or several ones that presented an opportunity based on the concepts I teach. My video analysis below elaborates on the logic behind the trade.
Economic indicators & events
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 the idea of using what I call the smart money tracker. The settings and the indicator can be accessed via our Discord room, where traders from all walks of life interact frequently. In this video, I go through the layout and all elements of the Discord room in great detail.
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.