The cross currency pairs can really deliver for forex traders

The cross-currency pairs can really deliver for forex traders

As forex traders, we tend to focus on the currency majors, but if you open your eyes and move to some of the cross-currency pairs, you will be surprised at the strong trends they can deliver. In this video I highlight one example using the EUR/CAD.

00:13

Switching from Ninja to MT5 platform

00:13

The speaker switches from using Ninja to MT5 trading platform, noting that MT5 offers more time frames and greater flexibility compared to MT4. They highlight that MT5’s variety of minute charts aligns well with their ongoing discussions about oil in forex trading.

00:46

Importance of relational market analysis

00:46

The program includes a module on relational analysis, which involves examining markets outside the one being traded. For example, forex traders need to understand the bond, commodity, and equity markets. Similarly, index futures and stock traders should consider external market influences to enhance their trading strategies.

01:22

Understanding market sentiment via currencies

01:22

The speaker emphasizes the importance of understanding immediate market sentiment by observing currencies that reflect it, such as the Swiss franc and Japanese yen. They note that market commentary frequently discusses the buying and selling trends of these currencies. Additionally, the speaker and David have observed a shift from traders focusing narrowly on their own markets to a broader, more interconnected perspective, where traders consider developments across different markets, like oil traders monitoring the Canadian dollar or currency pair traders expanding their outlook.

02:24

Oil market impact on Canadian dollar

02:24

The speaker emphasizes the importance of monitoring the oil market, as a significant crash in oil prices would likely impact the Canadian dollar. While much discussion has focused on the British pound and Canadian dollar, these two currencies are the most relevant in the current trading session. The speaker also notes that excellent trading opportunities often arise in cross currency pairs during this time.

02:57

EuroCAD daily chart and Wyckoff’s law

02:57

The video discusses the EUR/CAD currency pair, highlighting its potential for strong trades. The daily chart shows a prolonged congestion phase since April, centered around the volume point of control. This exemplifies Wyckoff’s second law, which states that the longer a market remains in congestion, the stronger the subsequent breakout tends to be. Recently, the EUR/CAD pair has broken away from this congestion, entering a strong uptrend driven in part by positive sentiment towards the euro. Today’s price action confirms this upward momentum, and future webinars will further explore daily chart patterns and their implications.

04:10

Trend analysis in faster time frames

04:10

The speaker explains that in strong trending markets, price movements on faster time frames often experience pullbacks that are typically not tradable due to the dominant daily trend bias. While quick counter-trend scalps are possible, they tend to be more challenging compared to trading in sideways or ranging markets. In ranging markets, large candles and indecision create opportunities for trading in either direction on faster time frames. The speaker also introduces the use of a Renko chart, highlighting its effectiveness in aiding trade entries by filtering noise.

05:17

Using Renko charts for trade entries

05:17

The segment discusses trading through pullbacks in a weak uptrend where corrections tend to be shallow. It highlights the use of trend dots and Renko charts on MetaTrader 5, noting that trend dots stayed blue until reaching significant resistance, causing a pullback and a change to red trend dots. The speaker mentions a minor correction suitable for fast time frames and analyzes a two-bar reversal on the three-minute Renko chart. The price then moves into a congestion phase around the volume point of control, aligning with patterns seen on other Renko charts. A breakthrough of resistance levels (r4 and r5) occurs on a volatility candle, indicating momentum behind the move.

06:58

Price levels and volume spread analysis

06:58

The discussion focuses on price movements with notable volume beneath the price action. Despite a retracement within the candle spread, there was a clear breakout above the R4 resistance level on the hourly chart. By analyzing multiple time frames, including the 10-minute and Renko charts, the speaker identifies key intraday levels such as R6 and specific price points like 158 and 69. The Canadian dollar is noted to be falling, suggesting potential for further decline. The explanation emphasizes that markets can remain overbought or oversold longer than expected, highlighting the use of Volume Price Analysis (VPA) signals combined with levels to identify trading opportunities.

08:09

VPA signals and slower time frames

08:09

The speaker discusses the importance of identifying potential price targets, emphasizing the need to analyze slower time frames after strong moves in faster time frames. They also mention focusing on the Canadian dollar, noting its selling pressure and referencing their currency dashboard that highlights the Euro-Canadian pair’s value on the hourly chart.

08:43

Currency strength matrix insights

08:43

The speaker discusses recent currency movements, highlighting a strong sell-off of the Canadian dollar against the euro, with less impact against the Swiss franc. They mention how the developed matrix values provide insights into the nature of these moves within the given timeframe. The focus then shifts to the pound and Canadian dollar pair, noting that the New Zealand dollar has taken precedence. The segment concludes with the speaker handing over to David and signing off, hoping the audience found the information valuable.

09:49

Overview of Quantum Trading platforms

09:49

The speaker wraps up the trading session and previews upcoming sessions on Tuesday and Thursday. They then introduce the Quantum Trading indicators available at quantumtrading.com and discuss the integration with TradeStation platforms. Two versions, TradeStation 9.5 and 10, are highlighted, emphasizing their strong relationship with Interactive Brokers. This partnership offers powerful charting tools combined with low-cost brokerage. The discussion also covers the RadarScreen feature available on both versions, which supports custom indicators, alerts, and enhanced trading capabilities. The launch of these tools is anticipated within the next two to three weeks.

11:23

TradingView indicator upgrades

11:23

The team is currently focused on building support pages across various platforms including MT4, MT5, NinjaTrader 7 and 8, and TradingView. TradingView’s updated Pine Script now allows more flexibility, enabling the porting of all indicators to this platform. Existing customers with the full TradingView package will receive these additional indicators free of charge as part of the upgrade. This includes features like a currency matrix, currency array, currency heat map, and VP indicator. The offer also encourages new purchases of the TradingView package, promising free future indicators for all full-package users across MT4, MT5, NinjaTrader, and TradingView.

12:50

Quantum Trading Forex education program

12:50

The full forex trading package offered at quantumtradingeducation.com includes five core modules covering psychology, fundamentals, relational, technical, and trading mechanics. The program features over 200 hours of video content, a comprehensive set of trading indicators that are continually updated for free, and extensive resources such as VPA chart examples, webinars, and a resource library. Members also gain access to a supportive community and daily interaction with the instructor. The course is designed for self-paced learning, encouraging students to maintain their full-time jobs while acquiring trading skills.

14:11

Trading advice for beginners

14:11

The speaker advises salaried employees to learn forex trading gradually without expecting immediate income, emphasizing the importance of keeping their job to reduce financial pressure. They explain that Volume Price Analysis (VPA) is effective across all time frames, whether trading daily charts due to limited time or shorter intervals like 4-hour charts, allowing flexibility in trading style.

14:39

Automated trade setups and stops

14:39

The speaker explains that trading platforms allow users to set various order types such as limit orders and trailing stops, making the process largely mechanical and similar to trading directly from a screen. They also mention Anna’s website, thecooling.com, where all related books are available both in Kindle and paperback formats, along with links to other resources.

15:05

Additional resources and closing remarks

15:05

The speaker concludes the session by noting the VIX is falling, indicating rising equities, and observes a breakout from a previously discussed range. They emphasize patience during market congestion and mention volume and volatility patterns supporting the breakout. The session ends with a reminder about the next meeting on Tuesday at 7:45 London time for the U.S. forex session and well wishes for safety during unusual times.

By Anna Coulling – creator of volume price analysis