As the London forex session gets into full swing, sentiment is clearly displayed on the VIX which is trending lower as risk on sentiment returns with equities push ing higher on US futures markets. And of course currency flows from the yen and other risk currencies confirm the picture.
https://youtu.be/svEykuvd-J8...
In these unprecedented and dramatic times for markets, traders and investors volume price analysis has never been more appropriate and we had a great example on the 3 min chart for the WTI contract for April.
The chart is vpa 101 where following a move lower from a strong resistance line we have a candle with a deep upper wick and very high volume not only confirming the move lower but also providing a potential point of entry. The minor correction higher is on falling volume thereby validating our initial analysis.
By Anna Coulling...
Fundamental news is often cyclical and the importance of one type will vary according to where we are in the economic cycle. In addition, such items may be overshadowed by more prescient news, and this is certainly the case at present with Coronovirus dominating world headlines and driving fear in the markets. So it was no surprise to see the monthly NFP release have little impact on US indices, which paused momentarily before continuing their journey South as we can see across the three sisters here of the YM emini, the NQ emini and the ES emini. Note the weakness in the reaction higher on the 5m charts to the top of the image.
You can discover more in my FREE forex webclass where I cover this in more detail and teach five trading ideas to help you in your own forex trading. You can join me by clicking the link here http://bit.ly/3cB64cH
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The crossover sessions in forex occur when trading in one timezone closes and another opens and can be a very dangerous time for traders. Why? Because this is where insider traps are set. The London open always is a fertile ground and there was a great example on the usd/jpy.
Heavy buying in the pair on the previous day resulted in a nice move higher in Asia with the pair moving into consolidation ahead of the London open.
Prior to the open the pair started to move higher on reasonable volume but reversed lower at the open on high volume until the hammer candle, again on high volume pushed the pair back towards the consolidation (the yellow line on the chart).
I explain this in more detail in my free forex webclass - click to join here...
