Scan Of The Markets

Plenty of markets are finally coming back to life following tight ranges in most pairs. What’s driving these sell-side flows in equities, finally hitting hard the sentiment in Forex and benefiting the USD along the way, is anyone’s guess. The charts suffice to tell us everything we need to know.

There are several schools of thoughts as to what’s driving the markets: Is it the diminishing prospects of US fiscal stimulus amid political brinkmanship? The FOMC not filling that void? A rethink of valuations ahead of the US election? A second wave of COVID-19 in Europe/US leading to renewed global lockdowns?

What do you notice in the above list of potential drivers? It’s all largely subjective, hardly quantifiable to incorporate as part of an edge to trade, and for the most part, is almost always going to be talked about to fit the narrative of today’s market movements.

Instead, in the Daily Edge report, while not ignoring when fundamental drivers are well timed leading to an adjustment of valuations, I’d rather focus on the right side of the charts, that’s where the value is inn order to anticipate tomorrow’s news today.

Hot Trade Of The Day

To see an expanded version, right-click and select ‘open link in new tab‘. In this section I pick a market or several ones that presented an opportunity to buy on weakness or sell on strength based on the higher timeframes outlook.

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Insights Into Market Studies

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. 

Video Length: 00:19:52

Recent Economic Indicators & Events Ahead

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Source: Forexfactory

Important Footnotes

MARKET STRUCTURES

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.

MARKET MOMENTUM 

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.

PROJECTION TARGETS

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.