The Forex Market
THE 8 main currencies and the 28 Forex pairs that are derived from those 8 currencies.
The market has to be seen always in equilibrium. If one currency is bought some other(s) must be sold. This we could call her money flow. (I may use terms in a different way as they are used usually in this thread).
When we analyze the market we look at the whole market which to us is 8 currencies and 28 pairs.
Special features of the indicator Currency Strength28 Market momentum: Trend, consolidation, and reversal. The goal of the strategy is to find out in what sentiment the market is and what pair is good for trade and what pair it is not. As a trader, you should know if the market is trending or if it is consolidating or reversing, this will give you information how to trade. Do we look for continuation or do we look for pullback/reversal? This is THE very important question all of the time and this strategy will give you the answer!
What would give a trader to know if a trend will continue, consolidate or reverse? Answers will be given here!
Market momentum tells if Market is activ, weak or consolidated. Important information to know HOW to trade!
Each single currency belongs to a single economy. Some currencies are trending up some currencies are trending down, this information you can not see from a single pairs chart.
To maximize your wins and minimize your losses you need to know what an individual currency is doing in the context of the whole market. Staying with our EURUSD example: an EURUSD chart will show you only 1/28th of the market so you only have a small amount of information to base your trading decision on. Given that each currency can be paired with 7 other currencies you should be basing your trade decision on the information that all 14 pairs give you. By using the CStrength28 indicator you can get all that information from just the one chart.
The Currency Gap is taken from the strength of currencies. A GAP is up or down of a currency in a defined angle for 2 periods (or candles after close). This we call the single GAP.
We need to pair two single GAPs of BASE and the QUOTE currency to have a trade on a currency pair. This we call a double GAP.
Special features of the indicator Currency Strength28. Market Fibonacci levels: these levels are used on currencies.
Market Fibonacci Retracement Zones (MFib): are the magic levels for Currencies. These levels are used with currency-lines for potential reversal zones and strength sentiment. Market Fibonacci Retracement Zones are the 161 and 261 Market Fibonacci Levels.
Special features of the indicator Currency Strength28 Impulse/Speed.
To extract more, much more information about the impulse strength of a currency GAP we have released the new indicator CStrength28 _SPEED. It is used in addition to our standard indicator CStrength28. A deeper analysis of the currency about acceleration and speed will be printed. This will help you to take decisions about entry time and take profit time.