Let’s get started…
- Scan of the Forex market
- Analysis of the Forex trends (VIDEO)
- Economic indicators
- Educational material
Scan of the Forex market
The Euro and the Swiss Franc continue to be the markets where most of the buying flows have concentrated as of late. We had really solid demand in these two markets since the London session, a replica of the dynamics seen through Wednesday as well. The Australian Dollar joined the bullish party this time following a major turnaround early doors in the US session.
In terms of opportunities to capitalise on the Trapped Traders pattern I teach though the Global Prime Academy site, I identified the right formation of TTs in three markets. These included the EUR/USD, the NZD/JPY and Gold. Unfortunately, the rules of the strategy prevent us from taking trades ahead of the London session. Similarly, when trading the TT as part a trending context, if the discount line is not retested, this also makes us sit out the trades. This should have kept us away from taking trades in these markets.
Heading into Thursday, there are numerous markets that offer exceptional conditions to be predominately stalking for buy-side opportunities (watch today’s video analysis). The markets selected are a by-product of the fragility seen in the USD and the Japanese Yen, while also looking to exploit the recent strength that has erupted in the European currencies (exc the Pound).
In terms of fundamental news that may act as vol stimulants in the next 24h, I’ve singled out the OPEC+ meeting as the one to be watching that may cause wilder swings not only in the price of Oil, but that may easily spill over and affect the pricing of the Canadian Dollar given its status as a heavily-linked asset to Oil prices. However, since there is no specific time to make an announcement and leaks occur at various times, I will be treating any trading opportunity in CAD-related pairs as valid entries by letting the edge of the strategy play out.
Analysis of the Forex trends
In my video analysis below I use concepts such as momentum, market structures or order flow to come up with the daily outlook in the currency market.
Economic indicators & events
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. The indicator allows you to save time and avoid mistakes.
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 epicentre 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.