In the US forex session, we take a look at the GBP/CHF which had been the focus earlier, with a clean trading opportunity higher in a steady even trend. But, as we saw at the time, volatility was then triggered and as always this is a warning signal of potential danger ahead. And for us as traders, danger means congestion or worse still, a reversal, which was indeed the case with the pair reversing lower and moving into a strongly bearish trend thereafter. The volatility indicator is immensely powerful as it signals market maker participation and the potential for trap moves.
Moving on from the GBP, the single currency became our focus on the euro complex, and in particular on the EUR/AUD. And what was clear from an analysis of the currency matrix and the charts, was this move was being driven primarily by Aussie dollar weakness with the trend monitor indicator helping to keep us in to maximize returns from every trading opportunity.
Disclaimer: Futures, stocks, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in ...
Disclaimer: Futures, stocks, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures, stocks, commodities and forex markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell futures, stocks, commodities or forex. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. Past performance of indicators or methodology are not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.