A great way to help you get in and manage your trades

A great way to help you get in and manage your trades

Using non time-based charts is a great way to help you define where to enter the market, but more than that, they will also help you to stay in a position.

00:05

Introduction and trading overview

00:05

The speaker mentions that Pastor David is currently experiencing some technical difficulties. They invite the audience to ask any questions they have by dropping them into the chat box. The speaker then plans to revisit and review some content from the previous month.

00:37

Upcoming economic events this week

00:37

The speaker discusses how trading, particularly in Forex, moves quickly and is influenced by cyclical news releases. These scheduled announcements provide traders with advance knowledge about market focus, not just daily but for the entire week. This specific week is highlighted as the first trading week of the month, featuring important events such as the PMIs, the Reserve Bank of Australia (RBA) announcement from the previous day, and the upcoming Bank of Canada (BOC) update.

01:12

Importance of knowing currency fundamentals

01:12

The speaker discusses important upcoming economic events, including Canada’s announcement on Wednesday, the European Central Bank meeting on Thursday, and the US non-farm payroll report on Friday. They emphasize the importance of understanding how specific fundamental news impacts individual currencies, advising traders and students to become familiar with the timing and effects of these news events on their currency pairs.

01:53

Chinese PMI data and market impact

01:53

The speaker explains the importance of thoroughly researching before investing, likening it to understanding stock details. They introduce the start of the month as a critical period due to the release of Chinese PMI data. The discussion highlights a recent Chinese PMI figure of 50, emphasizing that while the accuracy of Chinese data is often questioned, the key factor is market perception and reaction rather than the data’s absolute truth.

03:07

Market reaction to PMI and commodity currencies

03:07

The PMI data came in at 50.7, surpassing the inflection point of 50, which the market interpreted very positively. This led to a strong rally in the Australian dollar, reflecting its close link to the Chinese economy. The CSI index showed a strong divergence with risk and commodity currencies, including the Canadian, Australian, and New Zealand dollars, all moving higher. The British Pound also experienced significant gains, partly driven by renewed speculation that Brexit is back on the agenda, prompting sterling traders to update their outlook.

04:17

Market sentiment and narrative analysis

04:17

The speaker discusses the importance of capturing market indicators on an hourly basis, as these values change rapidly and are part of a continuous process. Markets tend to create narratives to explain movements, which the indicators reflect. Currently, there is strong positive sentiment around the Australian market, driven by factors such as improving economic conditions and optimistic news related to recovery from the pandemic. However, sentiment can shift quickly depending on new developments.

05:21

Technical setups and recent market moves

05:21

The speaker analyzes recent market movements from a technical perspective, noting a lack of significant reversals on the hourly chart. While New Zealand’s currency has reversed nicely and the Australian dollar showed a slight reversal after the RBA decision, overall changes were minor with no major rate adjustments expected. The pound continues to rise, the Canadian dollar is overextended but still climbing, and both the yen and euro are declining. Despite limited major reversals, this assessment helps understand market sentiment and can be applied to preferred currency pairs.

06:32

Using Renko and tick charts for entries

06:32

The speaker discusses using non-time-based charts, such as Renko and tick charts, for trading entries during a potential reversal. They highlight observing a move away from a congestion phase and point out a key resistance level identified on the Camarillo chart, along with the volume point of control on a faster timeframe. The focus is on waiting for a reversal signal, indicated by trend dots and a trend monitor turning red, which provides a probabilistic insight into possible future price movements, though no outcome is guaranteed.

By Anna Coulling – creator of volume price analysis