The screenshot below shows a fully-loaded workspace, but you can configure the widgets to your liking.
The app shows:
- Fundamentals on the left (news calendar, forex news strength heatmap and news headlines)
- Momentum widgets in the middle (currency momenetum line graph, pie chart and tabular strength)
- Support/Resistance candle chart widget on the right
How to use
- Note which currency pairs are likely to move for the week using the Forex News Strength Heatmap widget (bottom-left)
- Use an MT4 Terminal that provides a
- Configure the currency strength momentum line graph to show Futures price since the day open
- Draw SR lines around the Asian session
- Open the Strength widgets (pie-chart and table) to see which Forex pairs are moving the most
- Set the Web Links widget to fxstreet as they provide frequent and concise forex news alerts
- Use the right-hand chart to analyse supply/demand to make a trading decision
- Open the news alarm widget and market radio and you're good to go
You now have a mini-version of a Bloomberg terminal.
Currency Momentum / Strength Graphs
This is one of the most powerful tools within the app. If you are using an MT4 that has
futures feeds, then you only need to see a few lines to know straight away which Forex
currency pairs are moving.
The line graph (left) shows only seven lines: ADSEP13 = AUD futures, BPSEP13 = GBP futures,
CDSEP13 = CAD futures, ECSEP13 = EURO futures, JYSEP13 = YEN futures, SFSEP13 = CHF futures
and finally the USDIX = the Dollar Index. With these seven currencies, you can watch the whole
Forex market without having to disseminate each individual pair!
You can double-click the graph to insert support / resistance lines; the graph shows
these SR lines drawn around the Asian session to easily see which lines break-out of
this Asian hilo range first. The graph shows the red line (USDIX) was the strongest and the purple
line (SFSEP13) was the weakest, so you would have been looking for intraday buys on USDCHF.
The graph below shows a profile for the NASDAQ, Dow Jones, SP500 and Gold. It's configured with two
momentum charts side-by-side and the left chart is set at the month open and the right shows
price momentum since the year open.
You'll notice two things 1) all three markets move in exact synergy...to the pip, whilst
Gold does the opposite and 2) the left chart (month open) shows an interesting inflection where Gold
started to cross upwards through the indices lines. As Gold punched north, the Dow Jones
(green line) was the first to lose its momentum and the other markets soon followed. However,
the downside of the markets was not as pronounced as Gold's move up!
Now look at the right-hand chart, for the last 169 days since the year open, the Dow has always
been the highest and in the last few days, it's now crossed its sister markets. The divergence
between Gold and the markets is now closing but from the right-hand year open chart, the disparity
between between the markets and Gold has been huge. Will Gold manage to close this gap and close
positive on the year open?
Support / Resistance Chart
The Support & Resistance charts show where momentum began and has remained intact across all timeframes. If there's
a green box on the hourly for example and 20 hours later an hourly candles closes below this green box, then
the box is removed.
This is another important tool because the boxes are calculated for all candles and all timeframes to build a
picture of where support and resistance originates. If you see boxes overlap, then that area becomes a more
important price point.
Below shows the AUDUSD as it's hit the bottom of a monthly support box in the past few weeks. The idea
is to scan the charts and find where price is hitting the top or bottom of these higher timeframe SR
boxes (D1, W1 and MN1) for the first time. The chart below shows a good example to start building low-risk buys on
AUDUSD by dropping down to the M5 timeframe and buying bullish candles with very small stops.
Conversely, CADCHF shows a higher timeframe (weekly) break of support. In the words of
each time price chops away at support or resistance, the tree becomes weaker. On CADCHF, this happened last week with a big
red candle, as support was tested and tested until it finally broke. Price has now hit the bottom of a weekly
support from where momentum began two years ago!
Currency Momentum Strength
The screenshot below shows the two currency strength widgets: pie-chart and tabular. Both widgets calculate price momentum
by comparing the current bid price against the previous candle close for the timeframe you choose. The pie-chart is handy
to visualise the currency strength of the momentum and an ideal trade is when you have two pie-sectors much larger than any
other sectors. The tabular widget shows the same data but in a different form, so you can see a sorted list of
currency strengths and its respective heat-map.