Another excellent forex session as the European open duly transitioned into the London session with volume rising accordingly, and in today’s webinar we started with a walk through of the currency dashboard, and what to consider in each step. The starting point as always is the currency strength indicator which disassembles this complex market into the base components of the individual currencies themselves. Here we can identify those currencies rising or strongly falling, overbought or oversold, and those in congestion and from here draw up a watchlist in our chosen timeframes. Next comes the currency matrix, and here it’s important to consider the numbers themselves at the extremes which can then provide clues as to possible reversals in the individual pairs and also the strength of sentiment across the complex. Next comes the currency array, which displays momentum and sentiment along with those pairs reaching potentially overbought or oversold. Finally it’s off to the currency heatmap which reveals the changes in sentiment visually across all 28 pairs and in all timeframes.
The Aussie dollar was very much in focus in this early session, with an initial sell ahead of the European open followed by some cautious buying as London opened on the AUD/JPY. And as always, if you are a novice trader, it’s all about making pips not $$ when you begin and then becoming a consistent and confident forex trader.