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  #1 (permalink)  
Old 02-13-2007, 10:46 PM
leveragefx leveragefx is offline
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Using Forex Heat Map Leading Indicator to Determine Market Direction
Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particularly trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk. Variables such as the ability to adhere to a particular trading program in spite of trading losses as well as maintaining adequate liquidity are material points which can adversely affect actual real tradingresults.”



We believe that LeverageFX's Statistical Balance Point Heatmap is one of the most powerful and useful tools for trading the Forex.

It shows you:
  • How strong or weak the currency you are trading is against the other non USD currencies.
  • 11 Shades of Green (Strong) or Red (Weak) show you the degree of strength or weakness
  • See how the Strength or Weakness of the US Dollar is compared to the EUR, GBP, CHF, JPY, and AUD. We show how the US Dollar strength or weakness will affect the currency being traded.
  • We believe that Gold is a leading indicator and when Gold is strong the US Dollar is normally weak and vice versa.
In the example below USD/CHF you can see on the right that the CHF is mildly stronger (light green) than the EUR and GBP, about even against the JPY and goes from mildly strong to mildly weak against the CAD. On the left of the chart the US Dollar is not strong nor weak against the EUR, GBP, CHF, JPY and is strong against the AUD. Gold is going down which causes the US Dollar to go up thus its colored green.

As the market consolidates and goes sideways you can see the US Dollar is getting weaker against the EUR, GBP, CHF, JPY and AUD and gold is having a negative impact on the US Dollar. We feel that whenever you see the US Dollar getting weak against all the other currencies it is a good sell. Shorting the USD/CHF the market falls 65 pips.




Please view our Hypothetical Results Disclosure and LeverageFX Disclosures

Last edited by leveragefx : 06-30-2007 at 07:27 PM.
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Old 02-13-2007, 10:51 PM
leveragefx leveragefx is offline
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The top 4 colors show how strong/weak the CHF is compared to the EUR, GBP, CHF and CAD. We feel that the dark green gives you an advantage over other traders and you are looking to buy the USD/CHF on pullbacks or breakouts!

The bottom fields show that the USD is strong from 3 till 5 am EST and then is a tad weak from 5am till about 8 am EST. Gold is putting a downward pressure on the USD but whenever you see mostly green and dark green in this example the market is primed to rally up strong.

This is a perfect example of when you see ALL Dark Green the market is going to go up and go up big. This is an 80 pip move!



Please view our Hypothetical Results Disclosure and LeverageFX Disclosures

Last edited by leveragefx : 06-30-2007 at 07:27 PM.
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Old 02-13-2007, 10:52 PM
leveragefx leveragefx is offline
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This is a great example of how the heatmap can improve your trading.

On the left of the chart you can see the CHF (Swiss Franc) is stronger than the Euro and Pound and weaker than the JPY. Once it breaks out around 3:30am EST it becomes a lot stronger than the other currencies. The bottom fields show the impact of the US Dollar on the USD/CHF. Whenever you see all green or red you often get strong trends. The darker the color the stronger the currencies are and trading in that direction on a pullback is, in our opinion, a high probability strategy.

You can see around 7am EST the Swiss Franc started to weaken against the Euro and Pound and gave you early warning to exit your longs and possibly look for shorts. The R2 pivot point along with our hourly statistical high and trend reversal signal was the perfect short. Once in the trade you can see the US Dollar became weak as well, dark red against all other currencies and the trader had the potential to catch 70 pips. The market fell right to the daily pivot which usually stalls or stops a move.



Please view our Hypothetical Results Disclosure and LeverageFX Disclosures

Last edited by leveragefx : 06-30-2007 at 07:27 PM.
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Old 02-13-2007, 10:53 PM
leveragefx leveragefx is offline
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In this example of the USD/CHF you can see the market had little volatility on the left side of the chart. The market was above the pivot on both days, a bullish sign but then broke. A general rule of thumb is buy when above the pivot and look for shorts below. At 2am EST the USD/CHF broke the pivot and you can see that the CHF was weaker than the EUR, GBP, and JPY a great sign that the short will prove profitable.

The bottom part of our heat map tool shows the strength or weakness of the US Dollar and how it will affect the currency being traded. When you see dark blood red on the bottom it means the US Dollar in this example is weak and will cause the USD/CHF to fall. When you see all red or green on heat map big trends tend to develop. There was a great short at 3am EST when the CHF hit the balance point line. Notice how the balance point line was amazing resistance all the way down, this is the level that most traders have positions at and is natural support/resistance.



Please view our Hypothetical Results Disclosure and LeverageFX Disclosures

Last edited by leveragefx : 06-30-2007 at 07:27 PM.
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Old 05-15-2007, 11:17 PM
leveragefx leveragefx is offline
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In this example we've added our New FX Multimap. You can see from 8:30am till 9:00am EST the market's uptrend probability increases dramatically! During the pullback to the yellow balance point line (Shows where most traders have positions and is one of our best support/resistance tools) you can see there was very little weakness. Clear sign the market is going up and it does! Up 60 pips in less than an hour!

The FX Multimap usually not only predicts market direction but while in a trade it lets you know whether or not to take small profits or wait for further movement.

This trade was a no brainer, trend strength of 40+ often runs 30 to 50 pips.



Please view our Hypothetical Results Disclosure and LeverageFX Disclosures

Last edited by leveragefx : 06-30-2007 at 07:27 PM.
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